News and Press Releases

FORMER MAYOR OF CEDARVILLE SENTENCED FOR THEFT OF FEMA FUNDS



FOR IMMEDIATE RELEASE
March 16, 2012

 






Fort Smith- Conner Eldridge, United States Attorney for the Western District of Arkansas,
announced today that Danny Armstrong, the former Mayor of Cedarville, Arkansas, was sentenced
to four years probation with the first 6 months as home detention by Chief United States District
Court Judge P.K. Holmes. Armstrong was previously convicted for obtaining funds from an agency
of the United States, by fraud, namely the Federal Emergency Management Agency (“FEMA”).
Armstrong was elected Mayor of Cedarville in 2007 and served in that position until his resignation
in July 2011.
Armstrong waived indictment and pleaded guilty to an Information on October 26, 2011.
According to the plea agreement, FEMA deposited $131,038.91 in government funds into the
Cedarville Street Fund account on June 1, 2009. In July 2009, Armstrong opened a bank account at
Citizens Bank and Trust titled “Mayor Account,” using a $11,352.85 refund check from a vendor
to open the account. The Cedarville City Council did not authorize any funds to be deposited in this
account, but instead, authorized a zero balance account with a debit card to be used when the Mayor
was traveling on city business. The Cedarville City Council had authorized a procedure whereby
monies from the General Fund were to be transferred into the “Mayor Account” to cover travel
expenditures. From July 2009 to June 2010, Armstrong intercepted and deposited approximately
$15,609.86 in checks into the “Mayor Account” that were made out to the City of Cedarville and
were supposed to be deposited into other city accounts such as the General Fund or the Street/Road
fund. During the same time period, Armstrong withdrew $4212.00 via unauthorized ATM
transactions and paid personal expenses of $5,970.70 by means of checks and electronic transfers,
which were also unauthorized. Armstrong’s actions resulted in a total loss to the City of Cedarville
in the amount of $10,182.70.
This case was investigated by the Federal Bureau of Investigation. Assistant United States
Attorney Candace Taylor prosecuted the case for the United States.
* * * E N D * * *
The Office of U.S. Attorney
Conner Eldridge
 
Photo of Conner Eldridge  
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