Former Elizabethton utility district manager indicted for theft, misconduct

ELIZABETHTON — A former Siam Utility District Office Manager has been indicted after a joint investigation between the Tennessee Comptroller of the Treasury and the Tennessee Bureau of Investigation led to the discovery of nearly $100,000 in unauthorized compensation, according to a press release. Royce Gentry, 64, was indicted on Sept. 10 by the Carter County Grand Jury on one count of theft over $60,000, one count of theft over $10,000 and two counts of official misconduct. Gentry has not been found guilty on these charges as of Wednesday. The investigation began in April 2025 at the request of 1st Judicial District Attorney General Steve Finney, according to a TBI press release. The Siam Utility District, established in 2007, in Elizabethton serves more than 1,000 Carter County residents and is governed by a three-person board of commissioners appointed by the mayor, the report states. The investigation was limited to select records between Jan. 1, 2023 and April 30, 2025, according to the comptroller's report. Within this time period, Gentry processed "unauthorized and questionable payroll payments and employer-paid benefits to himself using district funds totaling to at least $98, 340.53." "Public utility districts must have clear written policies and strong financial oversight," Comptroller Jason Mumpower said in the release. "No employee should be able to approve their own time, issue payments to themselves, or control every aspect of a district's finances without independent review. Those basic safeguards help protect public funds and the customers who rely on these essential services." Gentry withdrew from his employment without notifying the utility board or submitting a letter of resignation, the release states, on March 31, 2025. On his last day, he processed two unauthorized payroll checks to himself for 120 hours of unused vacation and 957.75 hours of sick leave totaling to more than $24,000. The comptroller's report states that both checks were blank when board members signed them and they did not know the purpose of the two checks. Board members also told investigators they would routinely sign blank checks for Gentry. The investigation also found Gentry claimed an average of 20 hours of overtime each week, and received more than $73,000 in overtime payments between Jan. 1, 2023 and March 31, 2025 for more than 2,000 hours of overtime. Within the investigated period, 86% of overtime payments were made to Gentry with the remaining 14% of payments disbursed between the eight other employees, the comptroller's report states. More than 40% of Gentry's total compensation during the investigated period was determined to be overtime payments, the press release states. In addition to these findings, the report also shows an example of Gentry's timecard that includes an unrecorded meal break, altercations and manual entries with some being illegible. The investigation also led to deficiencies regarding the utility district's internal control and compliance including the board's lack of establishing and adopting an internal control manual or sufficient written policies and the failure to provide adequate oversight and internal controls over financial processes, the report states. The report details the internal deficiencies regarding the utility district's financial processes found by investigators. Their findings led to the board's lack of oversight with segregation of duties, cash management, reconciliations, disbursements and timekeeping. The report states the board has corrected or intends to correct the deficiencies found during the investigation. This is a developing story.