A top MARTA official tasked with helping overhaul the transit authority’s finances and business model has been indicted by a grand jury on charges of embezzlement.
The victim: the Washington, D.C., chapter of the Institute for Internal Auditors, an association whose members guard their employers against fraud.
“How did he think he would ever be able to get away with it?” said Michael Dixon, the chief deputy commonwealth’s attorney for Prince William County in the Virginia suburbs of Washington. “In this business, it is hard to be surprised sometimes.”
Robin Howard, the assistant general manager for audit at MARTA, served as the president and treasurer of the chapter before coming to MARTA in January 2012, said Kevin Mayeux, the chief operating officer for the Institute of Internal Auditors’ national headquarters.
A Virginia judge issued an arrest warrant for Howard on Tuesday when he did not appear in court, Dixon said. If Howard does not return to Virginia for arrest, authorities will ask Georgia to arrest him, Dixon said.
“He was aware that there was an investigation going on, but I can’t answer whether he was aware that these matters were going to the grand jury,” Dixon said.
Attempts to reach Howard for comment were unsuccessful.
MARTA spokesman Lyle Harris was unaware of the indictment until The Atlanta Journal-Constitution alerted him. He verified that Howard still heads internal audits at MARTA.
“We have not independently verified this report and will have no comment at this time,” Harris said.
The Prince William County indictment issued Monday accuses Howard of six counts of embezzlement involving a total of about $50,000, Dixon said. The embezzlement would constitute a major hit to the chapter, which Mayeux said would likely carry a five-figure account balance rather than the seven-figure balances found in larger chapters such as Chicago.
After Howard left his position, the chapter discovered red flags in its accounts and hired a forensic accounting firm. Mayeux said each chapter is run by volunteers and elects its officers.
“When the books were transitioned to the current president and chapter treasurer, what was reported to them on the financial statements and what was in the bank accounts was substantially different,” Mayeux said. “That is when they started scratching their heads and trying to figure out what happened.”
The investigation found that during a two-year stint as treasurer, Howard had the bank financial statements sent to his home in Prince William County. When he was elected president, the newly elected treasurer allowed Howard to continue to receive the statements until after he left for the MARTA position.
“Anytime you have a volunteer organization … missteps happen,” Mayeux said. “I wouldn’t say this is the first time it has happened in the history of IIA, but it certainly is a rare occurrence.”
The institute contacted Howard in Atlanta to demand the return of the missing cash or an accounting of any withdrawals by him or disbursements to him to demonstrate that the money was properly spent, Mayeux said
“He didn’t confirm or deny anything,” Mayeux said. “He said he would provide documentation that backed up the disbursements that were made to him or by him and that he would return any additional chapter assets that were under his control.
“He did not provide that documentation.”
Howard had been the chief audit executive for Prince William County before beating out several highly qualified candidates to replace one of MARTA’s top officials, Assistant General Manager Jonnie Keith, who retired at the end of 2011. It was a critical time for the authority as it searched for ways to privatize parts of its operations to help close annual operating deficits of $30 million.
He also served as the manager of internal audit at the Washington Area Transit Authority, where he was responsible for managing all internal control reviews. His 18-year career also included stints with General Motors and the American Red Cross, according to MARTA.
The AJC learned though a records search that Howard has a history of five-figure liens and court judgments against him. In October 2011, the Internal Revenue Service placed a tax lien on him of $10,909. He repaid it four months after arriving at MARTA. The records list one other federal tax lien of $10,889, also filed in October 2011. It was unclear in the records whether this lien has been repaid.
Howard also had a 2001 judgment against him in a Virginia circuit court for $10,755 . Also in 2000, he had two child support liens filed against him for $18,023 and $5,570. It was unclear in the records whether these liens have been paid.
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