Stone Mountain mayor faces probe over alleged unauthorized control of city bank accounts

STONE MOUNTAIN, Ga. - The Stone Mountain City Council voted Monday night to launch an independent investigation into Mayor Beverly Jones after she made herself the sole signatory on the city’s bank accounts without notifying council members or staff.

It is a move that temporarily disrupted city bill payments and drew sharp criticism.

The 4-2 vote by the city council authorizes an independent review of the mayor’s actions. 

Jones said she will cooperate with the investigation.

What we know:

During a special meeting called Monday evening, the council entered executive session before voting on a resolution to authorize the hiring of an outside investigator. The move comes amid growing concerns that Jones exceeded her authority by interacting directly with Truist Bank and submitting documentation that removed other city officials as authorized signers on multiple accounts.

The backstory:

According to a draft of the resolution presented Monday, Mayor Jones allegedly filed a "Resolution for Deposit Account" with Truist Bank on April 2, naming herself as the sole authorized representative on all city accounts. City Manager Shawn Edmondson raised concerns in a May 7 email to council members, which included documents from the bank that appeared inconsistent with the city’s governing rules.

Under the city charter, the mayor is required to co-sign checks with another official designated by the council and is not permitted to unilaterally change account authorizations.

The accounts affected reportedly include those related to the Downtown Development Authority (DDA), stormwater utility, payroll, and funds from the American Rescue Plan Act.

What they're saying:

"The City of Stone Mountain is aware of concerns raised about signatory authority on specific financial accounts," City Manager Edmondson said in a statement. "City leadership is actively collaborating with legal counsel, the financial institution, and oversight bodies to ensure financial protocols are followed."

Edmondson confirmed the issue came to light when he attempted a wire transfer and was informed that only Jones had authority on the account. The bank reportedly relied on documentation submitted solely by the mayor, not a formal city resolution.

Carl Wright, Chair Downtown Development Authority of the City of Stone Mountain, also released a statement which reads:

"This is unfortunate. This Board should not be here tonight to deal with this. Our Executive Director should not be here tonight to deal with this. We definitely should not be paying our DDA Attorney to deal with this. And, most importantly, you, our residents and businesses, should not have to deal with this. We should be here to celebrate and encourage existing and new businesses. We should be here to approve new Enhancement and Mural Grants to improve our business district. We should be here to continue our work and commitment to lowering homeowners' taxes by encouraging redevelopment and economic development of our downtown commercial district for the betterment of our community. But, we are not. 

"We are here on an emergency basis to respond to and address ethical, legal, and financial improprieties by the Mayor. The DDA is a statutorily created entity under the Downtown Development Authorities Act. We are independent from and separate from the City and the control of the Mayor. We are not a committee of the City like the Planning Commission or the Historic Preservation Commission. We are independent. Our money - tax dollars from our residents and businesses - should be outside of the control of the Mayor and solely used to advance economic redevelopment, support of businesses, and encourage job growth in our City. 

"We have recently learned that for more than a month the Mayor and possibly others acting with her defrauded Truist Bank with fraudulent resolutions resulting in the Mayor alone being the sole signatory on all DDA accounts. This was done without the knowledge of or notice to this Board, our Executive Director, or our attorney. This was done in a blatant violation of the City Charter, the enabling legislation of this DDA, the MOU between this DDA and the City, and Georgia law. 

"The DDA approved tonight reaffirmation of a resolution establishing the true authorized representatives and signatories for our accounts. I am not a signatory. No single person - Board member or Staff - can sign and spend your money. Instead, two signatories are required. Our Treasurer or Vice Chair and our Executive Director or in her absence the City Manager. Tonight, we reaffirm our commitment to our work and to being good stewards of your tax dollars. We have voted tonight on a reinstated resolution establishing the signatories on our accounts and removing the Mayor from our accounts that she fraudulently attempted to hijack. 

"We are lucky in that this fraud was discovered before DDA funds were stolen as best we know. However, let me and this Board be clear - this is not acceptable. Fool me once, shame on you. Fool me twice, three, what are at four, times, shame on me. This Board tonight authorized our attorney to independently investigate what happened here, who was involved, and how it occurred in order to hold the culpable parties accountable and to report the results of his investigation to this Board in a public community meeting. We have also instructed our attorney to set up a separate matter so that this Board can seek the costs for his investigation from the appropriate parties that caused this breach of public trust. Our attorney and the City Attorney both sent demand letters to Truist Bank on Friday to undo these wrongs and to protect the financial assets of the City and the DDA. The Board and I are hopeful that the Council and the City will similarly act to fully investigate and hold accountable all of the involved parties. If the Council and City do not - this Board calls upon the DeKalb CEO, District Attorney, Attorney General, and Governor to intercede."

Dig deeper:

Adding to the controversy, Eileen Smith, wife of Mayor Pro Tem Ryan Smith and a former mayoral candidate, filed a police report accusing Jones of bank fraud. The report alleges Jones improperly removed signers and misused a city credit card, and that an unemployment claim was filed listing the city as her employer.

The other side:

In a contentious city council meeting, Jones defended her actions, saying the changes were intended to protect the city from potential fraud. "There was no intention to change an account. That was not the premise of it. It was just to make sure that the city was covered and I was the only signature on the account, I was the one they asked to come," Jones said.

Jones is referring to communication she says she received from Truist Bank Cybersecurity officials who told her that there were signatories on the City's accounts that no longer worked for the City and therefore could open the door to fraud. 

Jones says she was the only one notified of this by the bank, and she consulted with the now former city attorney on the matter. She claims that attorney advised her to go to the bank and make the changes. 

During a closed-door executive session, the Council voted to fire that city attorney, who then promptly left the building. Jones says she was only trying to prevent any fraud from happening in the City's accounts. 

But other City Council members like Anita Bass and Mayor Pro Tem Ryan Smith question why the Mayor did not bring this issue of potential fraud to the Council or the City Manager. When Fox 5 questioned her about this, she said she expected the city attorney to notify Council and City staff, which never happened. 

During the meeting, Jones maintained that she did not request the removal of other signers and claimed Truist Bank made that decision independently. FOX 5 reached out to Truist about this and they only sent a statement, "We are actively working toward a resolution of the management of the city’s accounts with Truist."

When FOX 5 asked Mayor Jones if she would cooperate with the investigation she replied, "Well, I have to, don't I?" 

What's next:

Despite a lot of back and forth during the meeting, council members passed two resolutions.

• Consideration of an action on a request to draft a resolution regarding elected officials direct communication and interaction with City’s banking institution without authorization from City Administration.
• Consideration of an action on a request to authorize an independent investigation of the financial allegations involving the Mayor, in the interest of transparency and public trust.

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