LUFKIN — Fire has damaged the old Abitibi paper mill at Lufkin. Firefighters from Lufkin and area volunteer fire departments brought the blaze on Highway 103 east under control around 1:00 yesterday afternoon. Investigators say a demolition crew was cutting pipes in a building of the plant around 9:00 Wednesday morning. It is thought smoldering embers finally caught fire shortly after 11:30. There were no injuries.
Man Sentenced for Insider Trading
TYLER – A 66-year-old Yuba City, California, man has been sentenced to federal prison for insider trading violations in the Eastern District of Texas. Stanley Swanson pleaded guilty Wednesday in Tyler to insider trading of a publicly traded security and was then sentenced to 30 months in federal prison by U.S. District Judge Leonard E. Davis.
According to the information presented in court, Swanson was the CEO and President of Safescript Pharmacies, also known as RTIN Holdings, Inc., a publicly traded company that marketed itself as an electronic prescription technology company. In 1999, Swanson resigned from his positions, and his son, Curtis Swanson, assumed control of RTIN holdings.
In September 2003, the Securities and Exchange Commission began to investigate Curtis Swanson’s fraudulent activities, specifically that Curtis Swanson and others fraudulently inflated RTIN’s publicly-reported revenues and income. Over the following six months, Swanson was aware of the SEC investigations, which was not known to the investing public; sold over 500,000 shares of RTIN stock; and received proceeds of approximately $2,017,277.20. In a separate proceeding, Curtis Swanson pleaded guilty to securities fraud and was sentenced to 10 years in federal prison.
GAWTP Cites Taxpayer Investments in TISD
TYLER — The citizen activist group Grassroots America – We the People says there’s more to Tyler ISD’s financial situation than meets the eye. GAWTP continues to oppose the TISD bond issue on the November ballot. According to the group, “Those urging voter approval of Tyler ISD bonds eagerly point to the AA rating by Standard & Poor’s, the ‘Superior’ Financial rating by the Texas Education Agency, and Certificates of Excellence in Financial Reporting as everything taxpayers need to know when it comes to how well the District spends our tax dollars.”
A statement from GAWTP Executive Director JoAnn Fleming continues, “While Grassroots agrees these ratings are important, the truth is – the S&P rating is based on the district’s financial strength, which is based on the ability of local taxpayers to foot the bill. The legal language in any bond proposition asserts the authority of the taxing district to levy the tax rate necessary to ensure the timely payment of bonded indebtedness. Holding steady the tax rate on the debt service side of the property tax rate is always dependent upon the stability of the local tax base, property values, and new debt. Superior financial ratings and excellence in financial reporting does not ensure commonsense spending priorities, the wisest, highest and best use of tax dollars, or cost-efficiency.”
Fleming adds, “For example, details found on the Texas Education Agency website spell out disturbing Tyler ISD trends in light of the rapidly growing overall tax burden on local taxpayers from all levels of government.” Fleming says in the last six years, central administrators have seen a 45% increase in pay, total tax revenue per pupil has increased 62%, and total Tyler ISD tax revenue has gone up 71%.
Fleming continues, “This information demonstrates the high level of investment taxpayers are already making in Tyler ISD. Given the growing cost to taxpayers and the outrageous increases in Tyler ISD administrative salaries – much beyond that of classroom teachers and even the state average – taxpayers clearly deserve answers on the bond package and improved facility planning. This ‘pay now and get answers later’ approach is wrong. We cannot and will not overlook it.” The pro-bond Vote Yes Committee did not immediately reply to a request for comment.
Officials Confirm Clements Death as Homicide
ATHENS (Staff/AP) – The Henderson County Sheriff’s Office has received an official cause of death concerning Ben Gill Clements, the son of former Gov. Bill Clements. According to KETK, officials with the Southwestern Institute of Forensic Sciences in Dallas ruled Clements’s cause of death as a result of apparent gunshot wounds and the manner of death as homicide. Clements’s body was unearthed on Howard Granger’s property on County Road 4609 and later positively identified. Clements, a neighbor of Granger’s, was first reported missing last Thursday. When authorities on Friday went to search Granger’s ranch, officials say he began shooting at them and Granger was killed. Officials later found Clements’s body in a shallow grave on Granger’s property.
Police Search for Reported Assault Suspect
TYLER — Tyler Police search for a suspect involved in a reported aggravated assault. It happened Wednesday morning in the area of Palmer and Arnold street. Police say the victim claims he was in the area looking for rental property when a verbal argument broke out with another motorist, who reportedly threatened him with a semi automatic handgun. The suspect was described as a black male between 27 and 34 years of age, driving a dark colored 2 door passenger car. Anyone with information is asked to call Tyler Police.
Intoxication Manslaughter Trial Begins
LUFKIN — A Livingston man is on trial on charges of intoxication manslaughter in the deaths of his two passengers in a crash in Hudson early Halloween morning 2008. A jury will determine John Lee Wade’s fate this week. On Oct. 31, the 22-year-old was traveling west on FM 706 at Stephenson Brown Road just after midnight when his red sports car left the road, crashed into a tree and caught fire. According to KETK, passengers Arturo DeJesus, 19, of Diboll, and Tomas Martinez, 19, of Lufkin, died from their injuries. Wade survived the wreck with internal injuries and burns and was released from the hospital two weeks after the accident.
A New Rice Elementary Location has Opposition
TYLER – A new group called “Why Relocate Rice” is joining the opposition against the Tyler School District bond issue. The group formed when it was learned Rice Elementary might be relocated. TISD officials say a decision has not been made on moving Rice Elementary and that can be done after the election. KETK-TV reports that’s the problem. School officials say after the election is over they plan meeting with residents on what should be done with the school.
Woman Sentenced for Embezzlement
TYLER — A Kilgore woman has been sentenced to federal prison for using the mail to embezzle funds from her employer. Deborah Ogden Williams, 47, pleaded guilty on April 12 to mail fraud. She was sentenced to 41 months in federal prison yesterday by U.S. District Judge Leonard Davis. Williams was also ordered to pay restitution in the amount of $626,717.99.
Federal prosecutors say Williams began working as a bookkeeper for K-K Mobbs Construction in 1994. During this time, Williams devised a scheme to defraud her employer and steal $626,717.99 from the company by writing checks on a company account to pay off her personal student loan, purchase gift cards, make payments on unauthorised credit cards, and pay off other personal debts.
Federal Drug Trafficking Sentence
TYLER — A Rusk County man has been sentenced to federal prison for his role in a methamphetamine trafficking ring. Johnny Douglas Campbell, 28, of Henderson, pleaded guilty in June to possession with intent to distribute pseudoephedrine. He was sentenced to 41 months in federal prison yesterday by U.S. District Judge Leonard E. Davis.
According to information presented in court, on January 13, Campbell took possession of three boxes of cold tablets, which contained a combined total of 288 tablets, knowing the cold pills would be used to manufacture methamphetamine. The cold pills contain pseudoephedrine, which is used to manufacture methamphetamine.
Working for a Veterans’ Court
TYLER — For the past two years, work has been underway to create a veterans’ court in Smith County. It could soon become a reality. Last week a task force appointed for the veterans’ court presented plans for implementation of the court to the commissioner’s court. The project received unanimous approval.
KETK-TV reports the court is designed as an optional measure for judges to provide help to veterans suffering from substance abuse and mental health problems linked to their time in the service. Veterans facing misdemeanor or felony offense charges, who meet certain guidelines, will have the one-time opportunity to avoid jail time, enter treatment and a mentoring program.
Spearheading the project is social worker Choya Shanahan who has praise for Smith County’s leadership. She told KETK, “Their vision, their foresight, and their diligence in pushing this forward has really been appreciated by all 18,000 veterans in Smith County.”
Woman Sentenced for Embezzlement
TYLER – A 47-year-old Kilgore woman has been sentenced to federal prison for using the mail to embezzle funds from her employer. Deborah Ogden Williams pleaded guilty on Apr. 12 to mail fraud and was sentenced to 41 months in federal prison Tuesday in Tyler by U.S. District Judge Leonard Davis. Williams was also ordered to pay restitution in the amount of $626,717.99. According to prosecutors, Williams began working as a bookkeeper for K-K Mobbs Construction in 1994. During this time, Williams devised a scheme to defraud her employer and steal $626,717.99 from the company by writing checks on a company account to pay off her personal student loan, purchase gift cards, make payments on unauthorized credit cards, and pay off other personal debts.
White Draws on Business Background
TYLER — Democratic gubernatorial nominee Bill White issues a call for unity and refers to his business background during his latest phone visit with KTBB. According to White, “Texas deserves a governor who can bring people together — Republicans, Democrats, Independents — and run this state like a well-run business. I’m a businessman; Rick Perry’s a career politician. I urge people to understand we have an alternative — and don’t be distracted by Mr. Perry’s attempt to cover up his failures by pointing at Washington. We need somebody who’s accountable for the government of Texas.” No comment yet from the Perry campaign. The governor has secured the backing of former President George H.W. Bush.
Realtors’ Group Endorses TISD Bond Proposal
TYLER — The Greater Tyler Association of Realtors’ 1100-plus-member organization Tuesday endorsed the TISD Bond Proposal slated for vote in the November 2 election. President Bill Pillsbury announced the group’s support. Pillsbury said, “All schools – public, private and those in our surrounding areas – are crucial to home values. When businesses and individuals look at a move to our area, the two biggest factors they look at are the medical facilities and schools. Our medical is top notch and our schools need to be as well. TISD has demonstrated their ability to construct quality facilities, and investing in education is especially prudent during these economic times. Construction costs are low, and there has never been a better time to get bond money. We urge everyone to join our organization in voting YES to the TISD Bond Proposal.”
Andy Bergfeld, Vote Yes spokesperson and a member of GTAR, introduced Pillsbury. In addition, other members of the Vote Yes committee were in attendance including Senator Kevin Eltife and former Mayor Joey Seeber. GTAR is the fourth organized group to endorse the bond along with the Tyler Area Chamber of Commerce, “Educators for TISD,” and “Faith Based Leaders for TISD”. The $89.8 million TISD Bond Proposal includes the replacement of the final two current elementary schools and the construction of a new middle school relief campus for overcrowding and growth. The $89.8 million can be paid for with no tax rate increase.
The citizen activist group Grassroots America – We the People continues to lead the charge against the bond, saying too many unanswered questions remain. According to Executive Director JoAnn Fleming’s most recent statement, “GAWTP is asking Tyler ISD to take seriously the consulting report that tells them they need to redraw attendance lines so that we can get the population of Tyler ISD dispersed around so that we can maximize the use of the facilities we have, including the new ones.”
Minor Injuries After I-20 Wreck
SMITH COUNTY — An wreck early Tuesday morning sends three to local hospitals. Smith County DPS report that around 2:15 two semi trailers reportedly crashed into one another on Interstate 20 near highway 155. According to KETK, both drivers of the two semi-drivers and a passenger are said to have minor injuries. They were taken to a local hospital. Both west bound lanes were later reopened.
Multiple Break-Ins Investigated
LUFKIN — Lufkin police are investigating a series of nearly 30 vehicle burglaries that occurred between Friday and early Monday morning. The robberies spanned a large area of West Lufkin stretching from the Fox Run Apartments to Southwood Drive, according to Lufkin Police spokesman Det. JB Smith. Police are hoping for leads in the cases. KETK reports, Sunday morning seven vehicles were burglarized outside Fox Run Apartments.