New Johnsonville Mayor Indicted for Theft After Receiving Improper Insurance Benefit

PRESS RELEASE from the office of Tennessee Comptroller Justin Wilson, Oct. 12, 2015:

A special investigation by the Tennessee Comptroller’s Office, in conjunction with the District Attorney General’s Office of the 23rd Judicial District, has found that New Johnsonville Mayor Lance Loveless received improper supplemental insurance coverage paid for by the city totaling at least $5,618.

From September 2011 through March 2015, Mayor Loveless held up to four supplemental insurance policies covering both himself and his spouse. These policies were to be paid in full by the employee through payroll deductions, however Mayor Loveless did not have any deductions from his payroll for these policies.

A newly appointed city recorder noted the omission and began making the proper deductions. Upon this correction, the mayor promptly cancelled all of his supplemental policies.

In October 2015, Mayor Lance Loveless was indicted by the Humphreys County Grand Jury on one count of theft over $1,000 and two counts of official misconduct.

In a similar fashion, a New Johnsonville police officer also received supplemental insurance for himself totaling $1,126. After the newly appointed clerk noticed that payroll deductions were not occurring, the officer promptly cancelled his policy. The officer told investigators that although he signed the application, he did not want and never intended to receive the supplemental insurance coverage.

“Government works better when there are strong financial processes in place,” Comptroller Justin P. Wilson said. “Reconciling insurance payments with payroll deductions may have prevented these improper benefits.”

To view the special investigation report online, go to: http://www.comptroller.tn.gov/ia/.