Mobile Council Eyes Fraud Probe
Local leaders plan a separate review of a $14.7 million accounting error while federal and internal teams pursue criminal leads.
By Chioma Kuznetsov ·
The Mobile City Council is preparing to launch its own investigation into a $14.7 million fraud that struck the city last month. Although the body did not cast a formal vote on the resolution, a majority of members signaled support for the measure during Tuesday's session.
Mayor Spiro Cheriogotis previously detailed the mechanics of the theft. He stated that an individual impersonated an employee of B.L. Harbert International, the contractor building Regions Arena downtown. The fraudster convinced city staff to update B.L. Harbert's banking records on file. They also obtained copies of legitimate invoices the contractor had submitted.
Using the altered banking details and valid invoices, the fraudster directed payments to an incorrect account. Cheriogotis noted that a supervisor who called to verify the changes used a direct line provided in a fraudulent email rather than the company's official number.
Councilman Ben Reynolds distinguished the council's planned probe from existing efforts. He explained that the FBI and internal city teams are focused on criminal activity and accounting controls. Reynolds argued that those groups will not produce a public report explaining exactly what happened. He stated the council's goal is to shape public policy and release all information, not just fragments.
Councilman Josh Woods expressed caution. He said he does not oppose the investigation but wants to ensure the council does not interfere with recovering lost funds. Woods emphasized the need for a clear scope and a defined plan to avoid wasting taxpayer money on information that might remain confidential.
Councilman Beau Fleming echoed those concerns. He warned against spending more public money to gather data that could jeopardize the recovery of the lost $14.7 million or result in information that cannot be shared with residents.
Reynolds suggested the council hire a law firm to lead the review, similar to the 2024 investigation into concerns raised by former Police Chief Paul Prine. He urged colleagues to keep the process narrowly focused. If the council passes the resolution next week, members will determine the specific structure, cost, and timeline for the new probe.
