(Part 1) Kenny Fairley, Johnny Dupree, and the path to indictments

fairley11Many people in the community may recall a mortgage flipping scandal involving a number of criminals which occurred in the late 90's and early to mid 2000's.  A msNewsNow report dating back to 2006 reported on the mortgage fraud scheme saying,

"Five people have pleaded guilty to Federal charges of mortgage fraud for their role in a scheme ran by alleged conspiracy ringleader Richard Lucas. Phillip Weary, William Vaston Fairley, Jafus Jones, Kenneth Fairley Jr., and Kristy Packer admitted their participation in the scheme when they entered their pleas Thursday in federal court in Hattiesburg, U.S. Attorney Dunn Lampton said in a statement. Lampton said the five are expected to testify against Lucas during his trial with two other co-defendants -- Kimberly A. Castle and Kenneth A. Stalnaker."

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An inman.com report dated back in 2006 reported,

"According to John Meynardie, assistant U.S. attorney, Clark (Malcolm L. Clark) worked for Lucas, recruiting so-called investors to buy property, fielding calls from mortgage lenders, picking up allegedly fake financial documents prepared by Michael T. Cox of Oak Grove and buying real estate for Lucas, reports said."

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Clark pleaded guilty and served time.
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One of the properties involved in the mortgage fraud was a property down the street from the Mayor's house and across from Mt. Carmel Church; located at 127 East 5th Street. Following the chain of title on the property is fascinating; however, it raises many more questions along the way.  It truly is a chain of past and possible future indictments.

The chain began back in November 6th of 2000 when, Kimberly Castle, a local attorney at the time, prepared a QuitClaim Deed on behalf of Mt. Carmel Baptist Church of Hattiesburg.

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Mayor Johnny Dupree (left foreground) Televangelist Kenny Fairley (right foreground)

(1) Televangelist Kenny Fairley deeded the property to Malcolm L. Clark on November 6th, 2000.

(2) Just two days later, the property changed hands again to a Victoria and James McNeal.  (Documents reveal the funding for the 2000 mortgage used to fund the fraud came from the Superior Bank of Chicago via a subsidiary known as Alliance Funding. Superior collapsed in July of 2001, and was taken over by the federal government.)

(3) After the property was foreclosed in April 2003, it was sold on the courthouse steps on May 2nd, 2003 for $33,576 cash to none other than Johnny l. Dupree.

(4) Dupree, the straw man in the transaction, held the property for just four months before giving it back to Mount Carmel Church on February 9th, 2004. (The deed was officially recorded on the 14th of February, 2004).

(5) Mount Carmel held the property until August 18th, 2008, when Deacons Anthony Harris and Van Tony Fountain deeded the property to Pinebelt Community Services.

The property made it full circle, through Mayor Johnny Dupree (individually), and is now the subject of a 2nd fraud investigation in 10 years, with the most recent being connected to his administration's Federal Programs Department.

Pinebelt Community Services has been a train wreck looking for an accident prior to the indictment of Fairley. Upon examination of Pinebelt Community Services it is discovered that one of the incorporators was Richard Lucas. Lucas was one of the ring leaders who pleaded guilty and served time in the late 1990's early 2000 era mortgage fraud scheme in Hattiesburg.  Lucas was reported on in the MS News Now link, along with others, in the 2nd paragraph of this article. Lucas appears to have very close relationships with the Fairley enterprise; however, he was not indicted in the alleged Fairley HUD fraud scheme.

Pinebelt Community Services is what's known as a CHUDO. It stands for Community Housing Urban Development Organization, and it is one of two that the city works with to direct federal monies, for the intended purposes of assisting low income families with affordable housing.  Its manager, according to multiple sources, for a number of years was Mayor Johnny Dupree's wife, Johniece Dupree.  It's not clear if she knew of the actions being alleged in the indictment.

Another person close to the Fairley is Clarence Williams. Williams worked for Fairley, and it has been reported to this outlet by multiple sources wishing to remain anonymous that Williams worked with Pinebelt Community Services under the direction of Johniece Dupree. Williams left Pinebelt Community Services for greener pastures; where he could likely utilize his talents to their fullest extent. That new job would be with the City of Hattiesburg in Federal and State Programs; the very department that helps to direct federal funds to Fairley's CHUDO organization.

whiteThe person who hired Williams was Lakelia Whites. White was appointed by Mayor Dupree in March of 2014. She hired Clarence Williams in December of 2014 as her Division Manager of Federal Programs. White's department appears to be at the center of a major federal fraud investigation, and that's not a good place to be for a Director.

Looking into public City of Hattiesburg Water records on 127 East 5th Street it was discovered that the person who has water service at this address is Lee Ann Williams. Skip trace investigators working with the Hattieburg Patriot discovered that Ms. Williams is the niece of none other than City of Hattieburg Federal Programs Division Manager, Clarence Williams.

Mr. Williams would not speak to the Hattiesburg Patriot, so he deferred to Mrs. White. Mrs. White met with the Hattiesburg Patriot. When confronted with the above facts she responded, "I'm not prepared to answer these questions."

The Hattiesburg Patriot caught up with Mayor Johnny Dupree to ask him for a comment on his role in the property.

It is becoming apparent that federal investigators are now in City Hall's Federal Programs Department, and the State Auditor has an unconfirmed investigation into bid rigging at the city, which points to the purchasing department. This site reported on that over a year ago, when it was discovered the State Auditor had seized records from Purchasing. That story can be read by clicking here.

The chain of title for the property which is the subject of the alleged Kenny Fairley HUD fraud scheme is below. It covers items 1-5 above in chronological order.

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246 COMMENTS

    • It shouldn’t, the FEDERAL GOVERNMENT knows what they are looking for and I believe they have found it, I don’t see “preacher man” wiggling his way out of this one, If the charges stick then all I can say is he has stuck his hand in the wrong cookie jar this time !!

  1. What if an -African-American has a print shop and a KKK member orders t-shirts to promote their “club”. Should the owner have the right to reject the order. To me, YES and I would stand by that owner in his decision. Nothing should really change with this being enacted. Owners who invite and love their customers (no matter who they are) still will. And that is the businesses that I will promote and support to the best of my ability. But I also support an owners right to make decisions for his/her business based on their beliefs. It may not be my belief, but it is their right to run the business that they “work” for in the way they choose. The media has once again exploited the news to their benefit.

  2. Three Black Men allegedly caught doing what whites have been doing for years, I wonder is the patriot going to write an article when they start exposing white, ain’t Billy Magee close to Bolton, same thing making y’all laugh will make your ass cry , must be trump supporters!!!!!

    • Many visitors to this site often use two Bible verses in particular completely out of context in an effort to justify bad behavior in others or in an effort to condemn this site for pointing out others’ bad behavior. Those 2 verses are: “Judge not lest you be judged” & “Let the one without sin cast the first stone.”
      In an effort to put an end to such out of context use of those verses, we offer this lesson, free of charge.
      So let’s look at them in context:
      “Do not judge, or you too will be judged. For in the same way you judge others, you will be judged, and with the measure you use, it will be measured to you.
      “Why do you look at the speck of sawdust in your brother’s eye and pay no attention to the plank in your own eye? How can you say to your brother, ‘Let me take the speck out of your eye,’ when all the time there is a plank in your own eye? You hypocrite, first take the plank out of your own eye, and then you will see clearly to remove the speck from your brother’s eye.
      Do not give dogs what is sacred; do not throw your pearls to pigs. If you do, they may trample them under their feet, and turn and tear you to pieces.” Matthew7:1-6
      So clearly this chapter instructs us to “remove the speck” from our brother’s eye, but we must make sure we do not do so in a hypocritical manner.

      Next, let’s examine John 8:2-11-

      “At dawn he appeared again in the temple courts, where all the people gathered around him, and he sat down to teach them. The teachers of the law and the Pharisees brought in a woman caught in adultery. They made her stand before the group and said to Jesus, “Teacher, this woman was caught in the act of adultery. In the Law Moses commanded us to stone such women. Now what do you say?” They were using this question as a trap,in order to have a basis for accusing him.
      But Jesus bent down and started to write on the ground with his finger. When they kept on questioning him, he straightened up and said to them, “Let any one of you who is without sin be the first to throw a stone at her.” Again he stooped down and wrote on the ground.
      At this, those who heard began to go away one at a time, the older ones first, until only Jesus was left, with the woman still standing there. Jesus straightened up and asked her, “Woman, where are they? Has no one condemned you?”
      “No one, sir,” she said.
      “Then neither do I condemn you,”Jesus declared. “Go now and leave your life of sin.”
      People quote John 8:7 but they leave out John 8:11 where Jesus tells the woman “go and sin no more.”
      It is our desire to put an end to the out-of-context, inappropriate use of these verses by both Christians & non-Christian alike. We hope that this information helps us achieve that goal.

    • Cokie Crosby, the Bible is interpreted in many ways, hence the different denominations. DUH. Guess you’re one of the few that will be voting AGAINST Hattiesburg in the next election. By the way, where do YOU go to church? Or do you just say at home and watch cartoons? Another fantasy world.

    • The bible truly states the only way YOU should look down on a MAN is when you’re picking him UP it is so clear to me that Hattiesburg Patriot are getting a joy out of someone trials and tribulations the bible states wo to anyone’s who offend ONE of my little ones PEOPLE ARE SO QUICK TO THROW A BRICK AND HIDE THEIR HAND WE SUPPOSE TO BE HELPER OF ONE ANOTHER THIS MAKES ME REALLY SICK TO KNOW PEOPLE ARE GETTING A JOY OUT OF SEEING SOMEONE ELSE HURT

    • “So don’t let anyone condemn you for what you eat or drink, or for not celebrating certain holy days or new moon ceremonies or Sabbaths. For these rules are only shadows of the reality yet to come. And Christ himself is that reality.” Colossians 2:16-17

  3. Lakeylal White, “I am not prepared to answer these questions”. Sounds as though she means to say, ‘I haven’t been prepped to tell you what they told me to tell you whats the truth, I wouldn’t lie to you sir. You feel me’. GUILTY! In my opinion. The fellow in the background of (previous) Mayor DuPree & (formally)Rev.-Kenneth Fairley is none other than Asst. to the (previous)mayor, John Brown of WDAM fame. Please note all statements are opinions only!!!

  4. Geez… I need graph paper to keep up with these thugs. This really makes my anger buds jump.. We have so much potential to be an awesome city.. A city that so many people would want to flock to.. if we could only get rid of the thugs, cheats, liars, crooks and other bad ones.