The former executive director of the Southwest Regional Recreation Authority pleaded guilty this week to bank fraud and embezzlement associated with a scheme to steal money intended for the Spearhead Trail System.
Melissa Slemp, Rose, 56, of Coeburn, pleaded guilty in federal court to one count of bank fraud and one count of embezzlement.
The Southwest Regional Recreation Authority was established in 2008 to oversee the development and management of the Spearhead Trail System, which consists of tourism destination within the counties of Buchanan, Dickinson, Lee, Russell, Scott, Tazwell and Wise and the City of Norton.
The SRRA receives approximately $1.1 million of general funds per year to operate, including federal funds.
Rose was hired in 2019 as the sales and finance manager for SRRA, and was to the executive director job in 2021.
She resigned from her position on Feb. 3, 2023, following an investigation concerning embezzlement of SRRA funds.
According to court documents, on January 23, 2023, the SRRA learned that Rose had used SRRA funds for her personal use. Rose wrote $16,614 in checks drawn on the SRRA’s bank account that were purportedly signed by another SRRA board member for the purchase of a residential property priced at $69,5000 with a $15,000 down payment.
n an attempt to hide her fraud, Rose logged her payments for the residential property into the SRRA’s QuickBooks account management system as purchases for “Tools” with “Land Lease for 5 Years on Mountainview Trail for Conex & SXS Storage” written in the description.
She also prepared a fraudulent purchase order and a fraudulent lease for the property, again forging a signature of another SRRA employee.
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Chris Graham
