FEDERAL JURY FINDS MOTHER AND DAUGHTER GUILTY OF CONSPIRACY AND THEFT
FROM AN ORGANIZATION RECEIVING FEDERAL FUNDS

BIRMINGHAM, AL - After deliberations, a federal jury has found Tuscaloosa residents DORIS GAIL PHILLIPS, 58 and MELINDA GAIL PHILLIPS SEXTON, 31, guilty on all charges of conspiracy and theft from an organization receiving federal funds. The mother and daughter were charged in a four count indictment filed in October 2006.

"We thank the ladies and gentlemen of the jury for their service and are pleased with their verdict," stated U.S. Attorney Alice H. Martin. "We will continue on to the sentencing phase of this case."

From December 2000 until March 22, 2002, PHILLIPS and SEXTON were employees of the State of Alabama and were working on the campus of Shelton State Community College when they conspired to intentionally misapply, embezzle, steal and obtain a house located at 402 42nd Street in Tuscaloosa, which belonged to the State of Alabama. Those renovations were completed during February 2001 to September 2001 using Shelton State Community College purchase orders to obtain labor and material, thereby causing money belonging to the State of Alabama to pay for the renovations. Their scheme resulted in SEXTON’s purchase of the house for $45,000, when in fact the house appraised for $92,000.

"I too thank the jurors for their service this week," states Richard Minor, Special Prosecutor Alabama Attorney General’s Office. "Their verdict today reinforces our belief that the people of Alabama have the right to expect that public employees will not privately and illegally benefit form their position and from the public treasury."

The penalty for conspiracy is five years in prison, a fine of $250,000, or both, on each count charged. The penalty for theft from an organization receiving federal funds is ten years in prison, a fine of $250,000, or both, for each count charged. The indictment seeks criminal forfeiture of $47,000 which represents the difference in the purchase of the house and the value of the house after renovations.

The investigation of this case was conducted by the North Alabama Public Corruption Task Force with investigations from the Alabama Attorney General’s Office, the Internal Revenue Service, and the Federal Bureau of Investigation. Assistant United States Attorneys George Martin and Tamarra Matthews-Johnson, Special Assistant United States Attorney John Gibbs, and Assistant Alabama Attorney General Brent Woodall are prosecuting this matter.