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Subpoenas go out in Downtown Waco Inc. scandal

Thursday, November 02, 2006

By Tommy Witherspoon

Tribune-Herald staff writer

Two Waco police detectives have obtained grand jury subpoenas for evidence in their ongoing investigation into widespread financial irregularities at Downtown Waco Inc.

DOWNTOWN WACO: COMPLETE COVERAGE
Downtown Waco Inc. scandal:
THE PUNISHMENT
THE TRIAL
THE PLEA
THE PRETRIAL MOTIONS
THE INVESTIGATION
THE SCANDAL

McLennan County District Attorney John Segrest confirmed Wednesday that he issued “several” grand jury subpoenas Tuesday at the request of the Waco Police Department.

While Segrest said he was precluded by confidentiality rules governing grand jury proceedings from revealing what the officers are seeking through the subpoenas, he said they were issued as part of the Downtown Waco Inc. inquiry.

The secretive grand jury process required Segrest to get permission from 54th State District Judge George Allen, who empanels the grand jury, to be able to share the information with the detectives once the subpoenas are complied with.

The district attorney’s office has the authority to issue grand jury subpoenas to force witness testimony before a grand jury or to compel the surrender of evidence, such as bank records.

Waco police spokesman Steve Anderson declined to discuss the grand jury subpoenas, saying his department is in the midst of an ongoing investigation. He declined to speculate how long that might take.

The investigation centers around whether Margaret Mills, former executive director of Downtown Waco Inc., misused agency funds. A $70,000 restitution check has been remitted to Downtown Waco Inc. on Mills’ behalf, and she has written to Downtown Waco Inc. executive committee members that she deeply regrets the “liberties” she took with agency accounts.

Downtown Waco Inc. officials are questioning expenditures that total more than $500,000. Many from a list of what officials call “questioned check activity” totaling at least $410,000 include checks signed by only Mills and written for cash or for what appear to be personal expenses.

Mills, 65, a well-known civic leader and tireless downtown booster, retired in July after an 18-year career at Downtown Waco before the scandal broke publicly. At the time of her retirement from the 50-year-old downtown development agency, Mills was making a salary of nearly $64,000.

Downtown Waco Inc. closed its offices on Washington Avenue on Tuesday. Some agency officials said they do not expect it to reopen.

twitherspoon@wacotrib.com

757-5737

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