Gatorfest and Anahuac Chamber Fraud Update

By Gloria Way

  Chambers County Sheriff Brian Hawthorne and District Attorney Cheryl Lieck Henry are working together investigating the alleged credit card fraud associated with both the Anahuac Area Chamber of Commerce and Texas Gatorfest. Hawthorne said that according to his office investigations, the amount of fraud could climb to over $100,000.00. “The deeper we investigate, the amount of funds being misappropriated increases,” said Hawthorne.

  Apparently, the misappropriation has been going on for several years. Former Chamber directors have revealed that they had not received current financials from the Chamber Executive Manager for a couple of years. Monies raised from chamber events was not accounted for and allegedly was used for personal use by the executive director. Also alleged was that the chamber funds and Gatorfest funds were comingled and used for personal use by the Texas Gatorfest chairman and the chamber executive director.

  Lieck Henry stated that a grand jury will be convening to further investigate the fraud allegations. The FBI may become involved as the credit card fraud could also involve tampering with bank records which is a federal crime.

  To date, the President of the Anahuac Chamber, Sarah Phelps, has resigned “due to time constraints as her current job does not allow her to spend the time necessary to be chamber President”. The Anahuac Chamber Executive Director, Katelynn Smith, has resigned.

  There is speculation that a group of people are trying to resurrect Gatorfest despite Willie Lancon, Chairman of Texas Gatorfest, “officially” cancelling the festival. Several major sponsors have lost tens of thousands of dollars that cannot be recovered as the money has been spent.

  As has been reported, the credit card fraud first came to light when the former executive director of the Chamber discovered that the Chamber was still charging on the credit card she had opened in her name for the Chamber that was supposed to be closed when she retired. The Chamber maxed out her card in the amount of $20,000.00.  Two more cards were opened and maxed out at over $60,000.00 and monies raised for Texas Gatorfest sponsorships have been misspent. Again, the sheriff’s office said that amount of misappropriated funds could be well over $100,000.00.

  Sarah Trahan, who is reportedly the spokesperson for the Chamber/Gatorfest fiasco, has not returned my calls for comment. Neither has Willie Lancon.

  The Seabreeze Beacon will keep you updated.