County Commissioner, Spouse Plead Guilty to Felony Theft

HUNTINGDON (April 5) — On Friday, after nearly a year of delays, the case against Carroll County Commissioner William “Lin” Smith, former Carroll County District 8 Fire Chief, and his wife, Malisa “Lisa” Smith, former department treasurer, has come to a close through a plea agreement. The Smiths pled guilty to a Class C Felony for theft over $30,000. According to documents provided by the 24th Judaical Circuit Court, the couple will repay $30,150.86 in restitution to the District 8 Volunteer Fire Department and will receive six years of supervised probation in lieu of jail time. After the probation and if restitution ($418.76 monthly repayment) is met, the felony will be expunged from their criminal record.

An investigation by the Tennessee Comptroller’s Office and Carroll County Sheriff’s Department resulted in the indictments Lin and Malisa Smith, who served respectively as the fire chief and treasurer for the Carroll County Volunteer Fire Department District 8 – Mixie station. William served as an elected member of the Carroll County Commission.

At approximately 5 p.m., Monday, April 8 Smith formally resigned his seat on the Carroll County Commission. Mayor Joseph Butler stated, “I have received an official letter of resignation from Lin Smith, of which I have accepted.” Later that evening during the regular meeting of the Commission, Mayor Butler announced the vacancy of the seat.

With inquiries on Smith’s status as a commissioner, according to TCA 40-20-114, Smith’s crimes were not committed while holding an elected public office thus, he did not legally have to resign. Once the felony is expunged he would be eligible to run for public office.

On Monday, May 1, 2023, the Carroll County Grand Jury indicted the couple separately on one count of Theft of Property over $10,000 and one count of Fraudulent Use of a Debit Card over $10,000. Comptroller investigators determined the Smiths stole at least $30,150.86 from the volunteer fire department beginning in April 2014 until they resigned from the fire department in March 2020.

The Smiths misappropriated the money from the department’s bank account and a separate credit union account. According to the Comptroller’s Office, the Smiths had $15,377.48 of “unauthorized purchases via Carroll Bank and Trust Account” and $14,773.38 of “unauthorized purchases via Johnsonville TVA Employees Credit Union Account.”

On February 14, 2023, investigators interviewed the Smiths. William acknowledged that several transactions were personal transactions. He admitted that he did use the debit card for personal use, and he does not know how much of the department’s money he spent. Malisa admitted that many meals and retail store transactions were not legitimate fire department purchases.

She also stated that she may have made some of the purchases from the credit union account but not all of them. She added that her husband had to make many of the other purchases since he was the only other person with access to the debit card.

The Smiths made unauthorized debit card transactions, check disbursements, and cash withdrawals. These included purchases at various retail stores; personal lodging and travel expenses; payments for food and alcohol; fuel purchases; and payments for various personal services. Department members confirmed the transactions did not benefit the department.

As treasurer, Malisa had access to and controlled the bank account maintained at the department’s banking institution. Between April 2014 and February 2018, they made unauthorized transactions from the department’s bank account including 65 checks for purchases totaling $9,226.48 at retail stores, including Walmart, Lowe’s, Tractor Supply, Sam’s Club, Clarksburg Supermarket, and Gander Mountain. Malisa Smith made 17 unauthorized cash withdrawals totaling $5,888. The department’s bank account incurred 19 overdraft fees totaling $263.

In February 2018, after department members became suspicious of the Smiths’ use of department funds, the Smiths closed the bank account with Carroll Bank and Trust and moved the remaining funds to a new account in Malisa’s name at Johnsonville TVA Employees Credit Union. In total, there were 318 transactions identified as misappropriated transactions.

An unnamed source close to the situation stated rumors had been circulating about the department’s bank accounts and charge accounts being used for personal gains by the Smiths. In an attempt to squash the rumors, officers of the Mixie Department requested the banking statements from the Smiths by March 3, 2020. None were provided by the former chief or treasurer.

Carroll Bank and Trust did provide the account records to the officers. The department officers suspended the Smiths while they audited the accounts. In response, on March 5, 2020, Lin resigned from his position on the fire department.

According to the source, as the officers looked over the financials it became obvious the Smiths were using the bank account as their personal slush fund. There were transactions for meals and alcohol in areas such as Alabama and Florida that correlated with trips taken by the couple. There was a balance of over $300 at Watsons Lumber and Hardware House in Huntingdon. The source said it was obvious the Smiths had used the account to purchase decking supplies corresponding to the date of construction on a deck at their residence.

The Carroll County Sheriff’s Office was notified by the volunteer fire department’s officers of the possible financial misappropriations. After some time, investigators passed the investigation on to the Tennessee Comptroller. Officers were made aware of the investigation. Over two years, the comptroller’s office had multiple investigators looking at the case. In October 2022, a new investigator took the assignment and actively worked with District Attorney General Neil Thompson to indict the Smiths.

As the district fire department decreased in size, fewer individuals were active. Members put their trust in Lin to be chief and Lisa to serve as the treasurer. When Lisa gained access to the account in 2014, membership was low and the volunteer officers were working full-time at other jobs. Carroll County Mayor Joseph Butler stated, “We share the concern about this report, and as we have with the investigation, will continue to cooperate fully now that this report has been released. Given that this is an active legal matter, we are limited in what we can share or discuss at this time and will hold any comment or action until the legal matter is settled.”

Asked when the county learned of the possible misappropriation, Mayor Butler said, “We were made aware of concerns in early 2020. As required of public officials in Tennessee Code Annotated Section 8-4-501, the information was reported to the office of the Tennessee Comptroller of the Treasury within a matter of days.”