Sunday, November 02, 2008
By Tommy Witherspoon
Tribune-Herald staff writer
In 18 years as executive director of Downtown Waco Inc., Margaret Mills had engendered so much trust and admiration that the board overseeing the development agency rarely questioned her judgment and seldom, if ever, thought about requiring annual financial audits.
Now that there is no question that Mills, 67, stole money from Downtown Waco Inc., an intriguing issue remains about how her violation of that public trust will be punished.
A plea agreement Mills reached last month with special prosecutors from the state attorney general’s office vastly limits the options facing potential McLennan County jurors as Mills’ punishment trial gets under way Monday.
Photos: Oct. 25 guilty plea
Video: Scenes from the courtroom as Margaret Mills' attorney discusses the plea deal
> TIMELINE: Downtown Waco scandal
Read the specific allegations filed by the state attorney general's office
Margaret Mills avoids media gauntlet at Sept. 3 hearing
Before the deal was struck, Mills faced a maximum sentence of life in prison if she had been convicted on the first-degree felony. Now, with more than half the theft allegations abandoned by the special prosecutors, her charges were reduced to a third-degree felony and her maximum prison time to 10 years.
Mills, who paid $70,000 in restitution before she was indicted, will ask for probation and will offer to pay back more of the money if she can stay out of prison, her attorney has said.
Assistant State Attorney General David S. Glickler has charged that Mills stole more than $500,000 in Downtown Waco Inc. funds. With the plea agreement, Glickler has reduced those allegations to just less than $100,000. He declined comment when asked how much he will try to prove she took during the upcoming punishment trial.
Violation of trust
How will the jury react to someone of Mills’ stature, and how much will the violation of public trust come into play?
Mark W. Osler, a law professor at Baylor University, said there is a reason that federal lawmakers saw fit to enhance charges against those who betray public trust.
“In the federal sentencing guidelines, it is expressed that there is an enhancement there when there is a violation of authority,” Osler said. “I think that is probably right. In federal law, we are saying, across the board, if you abuse your position of trust, we are going to punish you more.”
Waco attorney Mike Dixon, who represents McLennan County and various other governmental entities, said the breach of public trust is a factor that must be considered.
“When an official is placed in a position of trust, he or she essentially becomes a trustee of the public money, and as such, the public has the right to expect that he or she would protect that public money and not misappropriate it for their own use,” Dixon said.
“In addition to the damage they have caused in the form of financial loss, they have caused damage to public faith in the system, and that definitely is something that has to be considered, in my opinion,” he said.
Some public officials who have betrayed that trust have gone to prison, while others have paid back the money and were placed on probation.
Local precedents
Some local examples include:
* Joe R. Johnson — the former longtime McLennan County district clerk pleaded guilty in October 2005 to misusing funds entrusted to his office. He went to jail for 90 days as a condition of his sentence, which included four years of felony probation, a fine of $5,000 and $2,850 in restitution.
* Kimberly Reid — the former Bruceville-Eddy city clerk pleaded guilty to stealing about $22,000 in city funds from fines paid by traffic offenders in 2006. She was placed on felony probation for five years, fined $500, ordered to perform 300 hours of community service and to pay the remaining $8,000 in restitution to the city. She had already paid $14,000 back.
* Henry Mendez — the former director of the McLennan County Court Residential Treatment Center was sentenced to eight years in prison in 1996 after pleading no contest to stealing at least $140,000 from cash fine and fee payments from probationers under his supervision.
* Rita Norred — the former McLennan County Sheriff’s Office sergeant was sentenced to four years in prison and fined $5,000 in 1998 for stealing $13,200 in cash bond payments from the county jail. She repaid the money and was brought back from prison after six months and placed on “shock” probation — where defendants are given probation after spending a short time in prison — for five years.
* Mary Burdette — the former executive director of the Waco Humane Society was placed on felony probation for five years, jailed for 90 days and ordered to perform 300 hours of community service after she pleaded guilty in 2007 to misusing the agency’s credit card for $12,000 in personal expenses.
* Wanda Hoffman — the former McLennan County maintenance office coordinator was placed on felony probation in 2006 and ordered to repay the county $13,390 for using county credit cards for her personal use.
* Ernestine Perez — the former McLennan County senior purchasing agent, involved with Hoffman in the same credit card abuse scheme, also was placed on felony probation in 2006, fined $500 and ordered to make $630 in restitution to the county.
twitherspoon@wacotrib.com
757-5737
- MORE VIDEO: Margaret Mills arrives at county jail
- GRAPHIC: Arrest warrant affidavit
- Jun. 14, 2009: Former Downtown Waco leader Margaret Mills could be released by Thanksgiving
- Nov. 22, 2008: Margaret Mills spends first night in Gatesville prison
- Nov. 11, 2008: Margaret Mills escorted from Waco courtroom to begin 9-year sentence
- Nov. 10, 2008: Prison official describes what Margaret Mills' life might be like behind bars
- Nov. 8, 2008: Family friends pitch in to help Margaret Mills pay $100K restitution
- DAY 3 / Nov. 5, 2008: Judge seethes at attorneys as Margaret Mills plea deal is reached
- DAY 2 / Nov. 4, 2008: Margaret Mills' successor testifies she found Downtown Waco Inc.'s financial records
- DAY 1 / Nov. 3, 2008: Jury selected in Margaret Mills theft punishment trial
- Nov. 2, 2008: Betraying public trust may factor in Margaret Mills' sentence
- Nov. 2, 2008: Bad economy could be bad news for Margaret Mills, jury experts say
- Oct. 26, 2008: After Margaret Mills' guilty plea, question remains whether she can get an unbiased jury for her sentencing
- Oct. 25, 2008: Margaret Mills avoids possible life sentence in plea deal
- Oct. 25, 2008: Margaret Mills' plea deal has some wondering whether they will get paid back
- Oct. 24, 2008: Margaret Mills' attorneys to try again to move her trial from Waco
- Sept. 29, 2008: Defense files 2nd motion to move Margaret Mills trial from Waco
- Sept. 17, 2008: New court filing outlines theft allegations against Margaret Mills
- Sept. 3, 2008: Judge rules Mills should stand trial in Waco, sets Nov. 3 start date
- Sept. 2, 2008: Hearing expected to decide whether Margaret Mills trial moves from Waco
- Aug. 30, 2008: Federal tax lien placed on Margaret Mills' property
- Aug. 13, 2008: Prosecutor: Kick cameras out for Mills theft trial
- July 26, 2008: Margaret Mills' lawyers seek to bar courtroom cameras
- July 19, 2008: Mills' attorneys request change of venue for controversial trial
- July 15, 2008: Prosecutor files motion to restrict evidence in Margaret Mills case in advance of Friday's pre-trial hearing
- Feb. 2, 2008: Trial date set in Margaret Mills' theft case
- Jan. 24, 2008: Margaret Mills pretrial hearing scheduled
- Nov. 7, 2007: Margaret Mills indicted on 1st-degree felony theft charges
- Oct. 3, 2007: DA's office dogged by inquiries in Margaret Mills case
- Aug. 10, 2007: Mills investigation in its final stages
- May 5, 2007: Waco police submit part of Mills investigation to DA
- April 10, 2007: County DA Segrest will recuse himself in Mills case
- April 8, 2007: Disbelief, desperation marked Downtown Waco's final months
- April 3, 2007: Did Mills get special treatment from justice system?
- April 3, 2007: Longtime civic leader arrested, bonded out peacefully
- April 2, 2007: Mills' hard-charging ways won success, created sparks
- April 1, 2007: Arrest warrant issued for Margaret Mills
- Feb. 23, 2007: Investigation wrapping up
- Dec. 17, 2006: Inquiry will continue into 2007
- Nov. 4, 2006: Mills put money in own account on eve of retirement
- Nov. 2, 2006: "Several" subpoenas issued
- Nov. 1, 2006: $500,000 and counting: Questionable finances traced to 2000
- Oct. 28, 2006: Case could shake up courthouse
- Oct. 25, 2006: Downtown Waco office braces for closure
- Oct. 22, 2006: Who's minding the store at DTW?
- Oct. 15, 2006: No third-party audits for DTW Inc.
- Oct. 14, 2006: Ex-Downtown Waco director Mills target of investigation
- Oct. 11, 2006: Police investigating missing money
- Oct. 6, 2006: Missing funds at root of investigation
- Oct. 3, 2006: Downtown Waco Inc. loses city funds amid internal financial investigation







Comments
By Truth Be Told
Nov 3, 2008 8:44 AM | Link to this
My point (and appears one that individuals agree with) is that the composition of a Board of Directors is to provide vision, leadership, oversight, and supply confidence that the purpose of the entity is achieved and its resources (human & financial) are used prudently to achieve its goals by the entity's staff. While individual members may excel at some of those, financial oversight is an area that every member should have provided sound reason and review. This board's members have been silent and its members have not accounted for their roles and participation/action. Have they walked away? Obviously not, as the entity - Downtown Waco, Inc. still exists. Likewise, some members continue to serve in similar capacities that require fiduciary and management oversight. Was a DWI appointment merely a ceremonial appointment? If BODs are comprised of heads with names only and no oversight, then I (and many others who are disgusted that Mills was provided the ability to even perpetrate this act) would revisit any funding that I may provide either directly via contribution or indirectly through my taxes.
AND FOR THE EDIFICATION OF WHAT's YOUR PURPOSE...
Downtown Waco, Inc. Board (per Waco Tribune)
Chairman Scott Felton
Treasurer Mark Boyd
Tejas Logistics Systems president Gaylan Beavers, Wells Fargo executive Pat Millar, Insurors of Texas president George Chase, American Football Coaches Association executive director Grant Teaff, MCYC executive director Doug McDurham, Baylor University economist Tom Kelly, Quinn Campus executive director Jewel Lockridge, David Hicks of Compass Bank, Stewart Kelly of Kelly Realtors, McLennan Community College executive Danny Uptmore and Baylor's vice president for finance and administration, Reagan Ramsower.
By David
Nov 3, 2008 8:34 AM | Link to this
I believe there is more to this story that is not being told. YES, she should pay for what she has done. She betrayed the trust of the whole City of Waco. But then there is another Question that needs to be answered. Her husband was supposed to be a prominant attorney. Did he not know or wonder where all this money that his wife stole was coming from or did she do such a good job in hiding it from him or did he enjoy reaping the benifits from what she did?
By Fred's Wife
Nov 3, 2008 7:29 AM | Link to this
OK now you people quit pickin on my husban. He do what he can to hep you po folk see de truth. Po ole Fred he lost his job anit got nothin to look forward to but postin crap. He aint much of a husband but we get our welfar checks every mondth and he aint no crackhead like yall think.
By ladyb
Nov 2, 2008 10:00 PM | Link to this
I hope Mills gets probation. I want her to sit amoung other felons at the adult probation office. I want her to do free community service just like other felons, I want her to get that midnight home check just like other felons. I want all other people who steal from our city to see what happens. Going to prison to too easy for someone soooo respectable !
By Randy
Nov 2, 2008 9:48 PM | Link to this
Just another O.J. SIMPSON TRIAL. MAYBE NEXT TIME CAUGHT WITHOUT MONEY TO BUY ATTORNEYS , I CAN ONLY HOPE FOR 10 YEARS OF PRISON AND FULL RESTITUTION OF STOLEN FUNDS PLUS INTEREST. I ONLY WONDER IF THE IRS WAS PAID TAXES OF HER STOLEN INCOME $511,000.00 MAYBE THERE IS HOPE IF IRS COULD BECOME INVOLVED AND A CIVIL SUIT BY DOWN TOWN WACO INC.
By Enough Fred
Nov 2, 2008 9:22 PM | Link to this
Nice comment, Fred....."Slaughterhouse Waco", the same phrase used 15 times/day on this blog. Can't you come up with something new? Can you be a little more original? Try being creative--instead of just boring. You're an embarrassment to yourself! Here's a new one--complain about Larry Groth, oh wait, you do that 15 times per day also. What a pathetic life you lead--waking up at 4:00 and complaining on this blog. Have you ever heard of marriage? Like anyone would put up with your pathetic existence! You should "Slaughter Fred" and see if anyone even notices!
By Taco is Right
Nov 2, 2008 8:49 PM | Link to this
Taco's post is exactly right. Ramsower's on that board, too? That man is a disgrace for what he did at Baylor with the SAT.
Get him off your board as soon as you can, Downtown Waco. We wish we could do the same at BU!
By bear78
Nov 2, 2008 7:29 PM | Link to this
Freddie, my boy, if you are indeed posting at 4:23 am, as indicated, you are sick, sick, sick. Get a life, man! You truly need some help because the venom and hatred you spew will destroy you.
Now, I do agree (God, please don't strike me down!), with Fred and others that SOMEONE should have seen this going on for years. As many non-profits that I have served on, I've never seen one where audits or some kind of financial review weren't required, as well as two signature on checks in the case of a small agency where dual control wasn't possible. The board truly failed in its duties in this case; if it was innocent, as it probably was, it was certainly negligent. I imagine the D&O insurance route has already been investigated-it may not cover theft by an employee.
I haven't kept up with all of the news on this, but if Mills really stole almost $500K and it's been reduced to less than $100K, then the prosecutor owes a huge explanation to Waco citizens. It would appear that a double standard for justice exists and Wacoans of all walks of life should be incensed. If there are mental issues involved, taxpayers deserve to know the details of a plea and full restitution should be required.
By Taco
Nov 2, 2008 7:15 PM | Link to this
Downtown Waco, Inc. Board (per Waco Tribune)
Chairman Scott Felton
Treasurer Mark Boyd
Tejas Logistics Systems president Gaylan Beavers, Wells Fargo executive Pat Millar, Insurors of Texas president George Chase, American Football Coaches Association executive director Grant Teaff, MCYC executive director Doug McDurham, Baylor University economist Tom Kelly, Quinn Campus executive director Jewel Lockridge, David Hicks of Compass Bank, Stewart Kelly of Kelly Realtors, McLennan Community College executive Danny Uptmore and Baylor's vice president for finance and administration, Reagan Ramsower.
The above are Waco's main problem, get rid of them all and your problem goes away....advise, get out of this toilet as fast as you can, when the above have died off..return-maybe!!
By G.V. Summers
Nov 2, 2008 5:51 PM | Link to this
I totally agree that Margret Mills deserved the good life. The problem is the way she financed the good life and that was off the backs of the hard working local merchants of downtown Waco. It appears many people, Mrs. Mills included, have the belief that public money amounts to personal money that can be taken and spent as they see fit.
The violation of a public trust makes the crime that much worse. I don't care if she is old her sense of entitlement is warped. It would be an outrage and slap in the face to all the hard working and honest citizens of Waco if there is no jail time assessed.
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