HATTIESBURG, MS– A federal jury found Mt. Carmel Baptist Church Reverend Kenneth Fairley, 62, of Hattiesburg guilty of carrying out a scheme to defraud the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Gregory K. Davis.
Fairley was found guilty of one count of conspiracy to defraud the United States and two counts of theft of government money. Fairley could receive a sentence of up to 25 years in prison and a $750,000 fine. The sentencing is scheduled for November 21.
According to the Department of Justice, Fairley and his co-conspirator, Artie Fletcher, came up with a plan to defraud HUD in connection with a government contract issued to the City of Hattiesburg for the rehabilitation of two residential properties located within city limits.
Fairley and Fletcher had the work done for less than the amount of the funding, and the remainder was transferred to Fairley.
Fletcher pled guilty to a charge of misprision of a felony. He could be sentenced to three-years in prison sentence and $250,000 in fines.
Fairley’s son also had trouble with the law Monday. William Vaston Fairley turned himself in to Marion County deputies after he was pulled over for an expired tag. There was a warrant for his arrest and he had a firearm in his possession, which he was not supposed to have as a convicted felon. William was convicted of possession of a controlled substance in 2007.
William is being held in the Marion County lockup on a $10,000. He is scheduled to see the judge October 13, 2016.