Jerry Walsh, Charity Fund Diversion, Arkansas 2023
Grimy Times has learned that Jerry Walsh, 72, a former executive director of South Arkansas Youth Services (SAYS), an Arkansas-based nonprofit, has been sentenced to 30 months in prison followed by three years of supervised release for conspiring to unlawfully divert over $380,000 from the charity to an Arkansas state senator and the lobbying firm of a convicted lobbyist.
According to court documents, Walsh previously pleaded guilty to one count of conspiracy to misapply the nonprofit’s funds without authority from the board of directors. Judge Susan O. Hickey ordered Walsh to pay $515,631.56 in restitution in addition to his prison sentence.
As part of his plea, Walsh admitted that beginning in 2013, while serving as executive director for SAYS, he agreed to divert SAYS funds to convicted lobbyist Milton “Rusty” Cranford and an unnamed Arkansas state senator in exchange for the state senator’s influence in protecting the nonprofit’s state contracts with the Arkansas Department Health Services (DHS) and DHS’ Division of Youth Services (DYS).
The payments, totaling over $120,000, were made to the Arkansas state senator as a “legal retainer” without the expectation of any actual legal work. In reality, the purpose of the payments was to obtain the senator’s assistance in preserving the contracts by influencing DHS and DYS officials.
Walsh also admitted to paying Cranford’s lobbying firms above-market prices and employed a relative of Cranford who had a “no-show” job with SAYS. In total, Walsh illegally diverted approximately $262,000 in charity funds to Cranford’s lobbying firm and relative.
The FBI investigated this case along with the assistance of the Magnolia Police Department and the 13th Judicial District of Arkansas Prosecuting Attorney’s Office.
Walsh’s sentencing marks a significant blow to those involved in the corruption of public funds in Arkansas. The case serves as a reminder that those who abuse their positions of power and trust will be held accountable for their actions.
Key Facts
- State: Arkansas
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
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