HRT working with authorities to expand investigation

By: MaryKay Mallonee, WAVY.com

An exclusive WAVY.com investigation has revealed there is likely more money missing from Hampton Roads Transit in an alleged case of employee embezzlement.

In January WAVY.com broke the news that three HRT employees were accused of stealing about $90,000 from trolley fare boxes at the Oceanfront. Wednesday Larry Davenport, Senior Vice President for Finance, told WAVY.com the embezzlement could have been going on even longer than originally thought.

He said the missing $90,000 was from 2009 and that HRT and Virginia Beach investigators are now going back to 2008 and probing that year for stolen money. Davenport said there are indications even more money was embezzled in 2008 and that the total amount stolen from HRT, a taxpayer funded agency, will likely increase.

WAVY.com then went straight to HRT’s new president, Phil Shucet. “Mr. Davenport told me that he relayed that information to you but I think it’s very important to stick with the position that it’s inappropriate to comment on any aspect of this investigation until it’s complete,” said Shucet.

Norfolk Councilman and Vice Chairman of HRT’s Board of Commissioners, Randy Wright, said, “If in fact there was some wrong-doing that transpired before 2009, then whoever is responsible needs to be prosecuted and jailed.”

Wright, and other board members, have expressed anger about this case from the very beginning, when WAVY.com broke the news in January of the alleged employee embezzlement and then revealed the failure of former HRT president, Michael Townes to report the missing money to police.

“Well unfortunately the previous administration wanted to write the whole thing off,” said Wright, shaking his head. “Just wanted to sweep it under the rug.”

It was only after WAVY.com’s report that HRT called Virginia Beach Investigators and reported the missing money. Now, we’ve discovered it could be in the six figures.

Wright said the full HRT board needs to hear about this at Thursday’s meeting. “In fact, I will go so far as to say I guarantee it’s going to be discussed, at least in closed session, because I’m going to bring it up.”

WAVY.com will also be at Thursday’s HRT meeting and will bring you the very latest.