10/10/2009 10:00:00 PM
REPORT: County details actions behind Townsend charges
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Former Prescott developer Elise Townsend took money from her company's bank account despite knowing it would cause numerous subcontractors' checks to bounce, according to Yavapai County Attorney's Office internal investigation reports.
The Yavapai County Attorney's Office (YCAO) released the detailed reports to The Daily Courier in response to a public records request.
The YCAO is charging Townsend with two Class II felonies, fraud schemes and theft by converting services or property. Each Class II felony can produce three to 12.5 years of jail time. Her first court hearing occurred Sept. 22 and the next one is set for Oct. 26.
The 68 pages of internal reports detail interviews that YCAO investigators conducted with numerous witnesses and alleged victims, along with the investigators' case summaries.
The investigators concluded that Townsend went to her bank in January 2007 and withdrew $180,000 from her Prime Excavation company's bank account shortly after her business partner Don Nahrgang deposited the money and wrote seven checks to subcontractors and suppliers worth a combined $174,395.
Townsend then immediately shut down the company. Townsend's action caused the seven checks to bounce.
The YCAO concluded that Townsend's actions directly caused her business partner and nine businesses involved in a Prescott Lakes subdivision construction project to lose $308,585.
The victim businesses included Vail Contracting of Prescott, Bennett Oil of Prescott, Olson Precast of Arizona based in Phoenix, Schwab Sales Inc. of Gilbert, HD Supply Water Works based in Phoenix, Blasting Contractors LLC of Buckeye, Landscape Solutions of Tucson, Icon Development of Prescott, May Machinery Inc. of Buckeye and Don Nahrgang.
TOWNSENDS TALK
An investigator briefly interviewed Elise Townsend in Mississippi in June 2008. She was the manager for husband Jim Townsend's Bay Homes LLC company in Mississippi.
The YCAO investigator wrote that she had applied for a contractors certificate in Bay St. Louis, Miss., to build homes. The Townsends at the time were lease-purchasing a $625,000 home in Pass Christian, Miss., at a cost of a $10,000 deposit and $2,500 in monthly payments. The investigator noted that the Townsends' former Paulden home seemed abandoned, with a large amount of trash inside.
Elise Townsend told the YCAO investigator that "she owned the company (Prime Excavation), could do what she wanted with the money and many people had made a lot of money off of her company in the past," according to the report.
After originally denying it, Townsend's husband Jim told investigators she had a chance to return the money after knowing the checks would bounce, but refused to do so. Jim Townsend told investigators he had flown back to Prescott from Mississippi in July 2008 to talk to investigators without his wife's knowledge.
Jim Townsend also acknowledged selling off Prime Excavation equipment and using the approximately $60,000 to start a new life in Mississippi.
By that time, all of the Townsends' construction-related businesses were in serious financial trouble.
"He said they were advised to take the money out (of the Prime Excavation bank account) because it was apparent that this was as close to being even they were ever going to get," a report states.
Jim Townsend later acknowledged that this advice came from his nephew Cole Johnson, not from attorneys as Elise had allegedly told other witnesses. Jim Townsend admitted giving the $180,000 to Cole Johnson at Elise Townsend's request, since Cole had helped them financially in the past. Cole said he gave the money to his business partner Timothy Emberlin.
Emberlin told investigators he and Johnson were partners in several Prescott-area businesses. He also managed Johnson's Whispering Canyon subdivision development in Williamson Valley north of Prescott.
Emberlin said he did consulting work for Townsend, although he never billed her. He used most of the $180,000 to pay off a 36-acre lot he bought at the Long Meadow Ranch subdivision in Williamson Valley from Paul, Cole and Brandon Johnson in 2003 for $210,000. He later transferred that lot to Copper Tree Construction, which he owned with Cole Johnson and his wife.
The investigator told Jim Townsend that Cole Johnson later returned $140,000 of that money to the court overseeing the bankruptcy case of Townsend Construction, but Cole gave the other $40,000 back to Elise and Jim shortly after they moved to Mississippi.
Jim said he didn't know they got $40,000 back. The investigator showed him the $40,000 check that Cole wrote to Townsend Construction from his Paul Johnson Drywall company.
Cole Johnson said Elise asked him to invest in her new company building homes for Katrina hurricane victims, but he declined.
Jim said he and his wife were doing business under his name in Mississippi because of all her financial problems, and they were making a profit so they hoped to repay people hurt by Prime Excavating.
PRESCOTT LAKES PROJECT
Prime Excavating was a subcontractor for Prescott-based general contractor Icon Development Group at the Pinnacle housing construction project in the Prescott Lakes subdivision.
Icon Development owner John Johnson is the nephew of Jim Townsend and the half-brother of Cole Johnson. Icon directly and indirectly lost $436,486 because of the bounced checks. Not all of the money was recoverable in this case because some of the costs arising from Icon's decision to meet its contractual obligations were indirect losses.
For example, Icon chose to pay some of the companies that received bad checks so it could avoid project liens and complete its project on time. And Icon had been fronting Prime Excavation money so Prime Excavation could meet its payroll costs toward the end of the project.
During interviews with the Yavapai County Attorney's Office, both Elise and Jim Townsend accused Icon of owing money to Prime Excavation.
Cole Johnson told investigators his half-brother John Johnson was "very upset" when he found out that Cole got the $180,000 cashier's check.
OTHER INCIDENTS
Witnesses described other incidents to Yavapai County Attorney's Office investigators that were not directly related to the felony charges against Elise Townsend.
They included:
• Elise Townsend's longtime employee Korina Payne told investigators that she ended up getting sued over a similar check-writing incident at Townsend Homes.
At Elise's instruction, Payne wrote Townsend Homes checks to contractors that totaled nearly $100,000. Then, some time after quitting her job, she was sued for writing bad checks.
When she contacted Elise, "Elise told Korina that since she no longer worked for Townsend Homes that she was on her own," according to the Yavapai County Attorney's Office reports. Payne had to spend her own money to defend herself but was quickly dropped from the civil lawsuit after providing a deposition.
• Just a few weeks before withdrawing $180,000 from her bank, Elise Townsend also attempted to withdraw $10,000 from the same bank despite not having that money in her account, according to the Attorney's Office reports.
National Bank of Arizona's Prescott Branch Manager Cheryl Rolland told an investigator that she had informed Elise Townsend that she could not write an "overdraft" check as Townsend requested.
"Elise became insistent with the bank employee, telling her how important she was and that (she) had several accounts and lots of money with their bank," according to the report.
Townsend became upset when Rolland replied that she couldn't deliberately overdraw her account without collateral, no matter who she was.
About an hour later, Rolland received a call from the bank's Chino Valley branch manager, stating that Townsend wanted to withdraw $10,000 up there and Townsend stated that Rolland had authorized the action.
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Posted: Thursday, November 05, 2009
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Posted: Monday, November 02, 2009
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WHO CARES
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Posted: Tuesday, October 27, 2009
Article comment by:
Curious
I am curious about yesterday's,10-26-09,hearing? I have not seen or heard anything of what happened?
Posted: Saturday, October 24, 2009
Article comment by:
Ex Employee - I wish the best to all
I have to say that I worked for her for three months to long. It made me really sad to see she had a company hurting yet she was specially fit her for boots, yet she could not pay payroll. She had the best of the best in her new home in Paulden with Two Washers and dryers,so her kids could clean the numerous clothes they had. YET, I was living paycheck to paycheck. I have a hard time thinking that JIM had no clue what was going on when he was in the office daily.....I mean it DAILY! Elise... You know what you did to everyone. IT is TIME TO BE HONEST with YOURSELF and everyone else. You have done the damage to all. NOW IS THE TIME TO BE A WOMAN and BE honest!!! It is only fair to you and you family!
Posted: Tuesday, October 13, 2009
Article comment by:
Paul G.
Thanks for the photo. Now would the Courier PLEASE refrain from publishing these awful mug shots, I can't stand to read the articles when I see one of the photos.
Posted: Tuesday, October 13, 2009
Article comment by:
John Floyd Townsend
My name is John Townsend, and I am sending this from Tucson. I have received five phone calls today asking about the Article Comment posted under my name yesterday, 13 Oct 09. I did NOT submit that comment. I don't know who did submit it, or what it said. It had already been taken down by the site manager before the phone calls alerted me to its existence. Maybe there is another John Townsend interested in this case. (I AM the one who is related to Jim and Elise, the Johnsons, and sometimes I think about half the other folks in Yapavai County.) Or - more likely - someone too ashamed to use their own name decided to give attribution for their words to someone else, whom they suspected some readers would recognize. In any case, the John Townsend in Tucson didn't post the comment and doesn't know what it said or why it was taken down. Everybody go phone someone else.
Posted: Tuesday, October 13, 2009
Article comment by:
B. Payne
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Posted: Monday, October 12, 2009
Article comment by:
Senator Townsend Republican poster child
Oh well maybe if she's not convicted she could run for State Senator after all. Just another of the Cowboy Mafia exploiting and serving their own self interest.
Posted: Monday, October 12, 2009
Article comment by:
Phil G
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and other language intended to intimidate or to incite violence will not be
tolerated. Debate, but donšt attack. The Daily Courier encourages vibrant
discussions and welcomes active debate in its discussion forums. But
personal attacks are not tolerated, and are a direct violation of these
Terms of Use."
Posted: Monday, October 12, 2009
Article comment by:
Fed up...
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speech, or harms minors in any way. You may not post content that degrades
others on the basis of gender, race, class, ethnicity, national origin,
religion, sexual preference, disability or other classification. Epithets
and other language intended to intimidate or to incite violence will not be
tolerated. Debate, but donšt attack. The Daily Courier encourages vibrant
discussions and welcomes active debate in its discussion forums. But
personal attacks are not tolerated, and are a direct violation of these
Terms of Use."
Posted: Monday, October 12, 2009
Article comment by:
Feel Sorry for Your Kids Elise
The editor has removed this comment because it violates the Terms of Use
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racist, vulgar, invasive of anotheršs privacy, illegal, constitutes hate
speech, or harms minors in any way. You may not post content that degrades
others on the basis of gender, race, class, ethnicity, national origin,
religion, sexual preference, disability or other classification. Epithets
and other language intended to intimidate or to incite violence will not be
tolerated. Debate, but donšt attack. The Daily Courier encourages vibrant
discussions and welcomes active debate in its discussion forums. But
personal attacks are not tolerated, and are a direct violation of these
Terms of Use."
Posted: Monday, October 12, 2009
Article comment by:
Curious
Has anyone checked the Yavapai County Property Web Site.
Townsend Construction shows as owners of homes in Prescott and Dewey. The home in Prescott is for sale. Listed at $499,000 Maybe a lien of some kind ? Just curious
Posted: Monday, October 12, 2009
Article comment by:
Paying for her mistakes
Park Ridge & Quailwood - Not every home in these developments is a Townsend home, yet ALL homeowners living in these two developments have been negatively affected by Townsend and her issues. When does it end? Just how much will she be able to get away with? 'Wish I could afford to live in a $625,000 home with a $2,500 a month payment! So not fair!!!!
Posted: Monday, October 12, 2009
Article comment by:
Johnsons are Good People!
The Johnson Family are made out to be horrible people here. I have delt with the Johnsons and many of their local companies and have only the BEST to say about them. They are a local ran business, they offer great paying jobs to local people, their services are in my opinion "perfect." They are professional, timely, fair and most important honest. It is unfortunate their good company name is being tied to Elise's bad actions. Never judge a company by a badly written article. Make decisions for yourself and I am sure you will find my opinions to be true!
Posted: Monday, October 12, 2009
Article comment by:
John Townsend
Terms of Use
agreement for dCourier.com. The "Use of Service" portion states, "If you use
the Service, including the Messages Boards or Blogs, or submit essays,
e-mail messages or other information via www.courieraz.com or
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that is libelous, defamatory, false, misleading, obscene, indecent, lewd,
pornographic, violent, abusive, threatening, harassing, discriminatory,
racist, vulgar, invasive of anotheršs privacy, illegal, constitutes hate
speech, or harms minors in any way. You may not post content that degrades
others on the basis of gender, race, class, ethnicity, national origin,
religion, sexual preference, disability or other classification. Epithets
and other language intended to intimidate or to incite violence will not be
tolerated. Debate, but donšt attack. The Daily Courier encourages vibrant
discussions and welcomes active debate in its discussion forums. But
personal attacks are not tolerated, and are a direct violation of these
Terms of Use."
Posted: Sunday, October 11, 2009
Article comment by:
No name provided
I feel bad for the Johnson family. ... (Site administrator's note: A portion of this comment was removed because it violated our Terms of Use Agreement)
Posted: Sunday, October 11, 2009
Article comment by:
honkybrujo
Is it too late for her to run for public office? She appears to be the perfect Republican candidate!
Posted: Sunday, October 11, 2009
Article comment by:
Lost my ...
Don't get me wrong - I truly feel sorry for all of the businesses and subcontractors who (are victims) ... and I hope they get their money back with interest. But what about all of us folks who bought Townsend homes and were left with worthless warranties and incomplete or inferior work? What about Park Ridge and Quailwood? Every person who bought a house in those communities lost more in their property values than other homeowners in comparable communities .... If these homeowners want to sell, they now also have to deal with the stigma of trying to unload a Townsend home ... Will these people ever get their money back or receive justice? Many of us have already lost money in legal fees to no avail. Is anyone out there trying to get us money for our claims against Townsend? Could the COURIER research this aspect of the Townsend fiasco? Please do a story on this for us - we need your help!
Posted: Sunday, October 11, 2009
Article comment by:
It Keeps On Getting Better
This definitely seems to be a 'Family Affair.' Glad I am not related! Hope they all 'reap what they sow.' ... Please give me a call for jury duty...
Posted: Sunday, October 11, 2009
Article comment by:
My Grandfather told me...
The editor has removed this comment because it violates the Terms of Use agreement for dCourier.com. The "Use of Service" portion states, "If you use the Service, including the Messages Boards or Blogs, or submit essays, e-mail messages or other information ... you agree to abide by and be bound by the following:
1. You may not post, upload, or transmit any material or links to material that is libelous, defamatory, false, misleading, obscene, indecent, lewd, pornographic, violent, abusive, threatening, harassing, discriminatory, racist, vulgar, invasive of anothers privacy, illegal, constitutes hate speech, or harms minors in any way. You may not post content that degrades others on the basis of gender, race, class, ethnicity, national origin, religion, sexual preference, disability or other classification. Epithets and other language intended to intimidate or to incite violence will not be tolerated. Debate, but dont attack. The Daily Courier encourages vibrant discussions and welcomes active debate in its discussion forums. But personal attacks are not tolerated, and are a direct violation of these Terms of Use."
Posted: Sunday, October 11, 2009
Article comment by:
Let the sun shine in!
Gee, how soon we forget. Ms. Townsend was the Prescott Woman of the Year just a few short years back, magazine cover and all. They must do a lot of in-depth research to bestow such a serious, prestigous award!
I also thought it pretty amazing that someone couldn't remember receiving $40,000 back; just chump change, I guess. And yes, I would like to know a little more about the $80,000/yr. part time employee Victor Hambrick tax assessor connection, as well.
Posted: Sunday, October 11, 2009
Article comment by:
Fabio
Sounds as though Elise is still blaming others for her problems. This is only the end of the beginning not the beginning of the end. ...
Posted: Sunday, October 11, 2009
Article comment by:
Just My Opinion
(Site administrator's note: This comment was removed because it violated our Terms of Use Agreement)
Posted: Sunday, October 11, 2009
Article comment by:
No name provided
Oh Chance, it's killing you that Hambrick's name was not mentioned in this article, isn't it?There's probably a very good reason for that...this article has nothing to do with him. In fact, his name has been cleared by the attorneys who were investigating him. Now, do you really want to drag what's-his-name through the mud - again? Let the investigators do their work...
Posted: Sunday, October 11, 2009
Article comment by:
Where's The Money Elsie!
Amazing ... How about the work she did with Victor Hambrick? Seems there was a hint of an investigation starting up regarding their land dealings whlie he was a part time employee of her at $80,000.00 a year. Looks like kin is turning on kin. She needs to open up on where she stashed the money and pay back the folks she allegedly took from. She cannot have spent all she had! Follow that money trail, include all family members and former associates.
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