Two charged in connection with $1M misappropriation of college funds

(The Center Square) – Two former employees of the Tennessee College of Applied Technology, Elizabethton, are charged with theft and other offenses in connection with the misappropriation of more than $1 million. John Lee and Mark DeHart are accused of using college equipment, facilities, employees and business relationships to perform work involving their private company, D&L Education Solutions, according to information released by the Tennessee Comptroller of the Treasury on Monday. "From 2019 through 2023, D&L received at least $940,841 for curriculum development, industry training, travel, and certifications involving organizations including Kubota, Bobcat, Subaru, and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives," investigators said in a report. "D&L also used the college's address and represented its work in ways that created the impression that the private business was affiliated with the college." Lee and DeHart were also collecting wages while working for the company or taking part in personal activities, auditors said. Lee received $82,726 in unearned wages and associate costs and $19,413 in improper travel reimbursements and misuse of college funds, according to the audit. DeHart received more than $15,000 in unearned wages and associated costs. They resigned from their posts on Jan. 26, 2023. Lee is charged with two counts of theft over $60,000, one count of conspiracy to commit theft over $60,000, one count of computer offenses over $10,000, and one count of theft over $10,000, according to the comptroller's office. DeHart is charged with one count of theft over $60,000, one count of conspiracy to commit theft over $60,000, one count of computer offenses over $10,000, and one count of theft over $10,000. They were indicted in September by a Carter County Grand Jury, according to the comptroller's office. The Tennessee Board of Regents, which oversees the college, contacted the comptroller's office after its auditors questionable financial activity and possible misuse of public funds. "The investigation also noted that the activities in question occurred during the 2019-2023 time period, prior to the college's current administration," said Rick Locker, communications director for the Board of Regents, in a statement to The Center Square. "We take our responsibility to protect taxpayers' funding and students' tuition very seriously – it is a top priority – and we will continue to work closely with the Comptroller's Office and the District Attorney's Office." Comptroller Jason Mumpower said the investigation shows why strong oversight and clear separation between public employment and private business interests are important. "College resources, employees, and business relationships must be used to benefit the institution and its students, not private businesses," Mumpower said. "Effective management oversight could have helped identify these activities much sooner."