09/01/04  CITY HALL INVESTIGATION OF CITY CONTROLLER

CBS 11 NEWS HAS UNCOVERED A MAJOR INVESTIGATION AT DALLAS CITY HALL INVOLVING THE CITY CONTROLLER.

SHE'S BEEN PUT ON ADMINISTRATIVE LEAVE AND COULD BE FIRED.   AT THE SAME TIME, AN ORGANIZATION HER HUSBAND WORKS WITH IS BEING QUESTIONED ABOUT '"MISAPPROPRIATION OF GRANT FUNDS."

THE CITY CONTROLLER MAKES ABOUT $100,000 A YEAR.  SHE'S BEEN WITH THE CITY FOR 4 YEARS AND SHE'S AUTHORIZED TO SIGN CHECKS ON THE CITY'S CHECKING ACCOUNT.  BUT, NOW HER JOB IS ON THE LINE AND QUESTIONS ARE SURFACING ABOUT A SOUTH DALLAS NON-PROFIT GROUP HER HUSBAND WORKS WITH.

Dallas Controller, SHERRI MIXON
T.R. HOOVER CDC
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"There are a few things we have to address.. What are they?  There are a few things, any normal agency would go through."

SOURCES TELL US MIXON REFUSED TO OPEN HER BOOKS TO THE CITY OF DALLAS FOR AN AUDIT, AND NOW THE CITY IS SUSPENDING THE PAYMENT OF ANY ADDITIONAL FUNDS TO T.R. HOOVER.

THE GRANT MONEY WAS SUPPOSED TO GO TOWARD BUILDING AFFORDABLE HOUSING IN SOUTH DALLAS, BUT WE'RE TOLD THE AUDITOR'S OFFICE MAY HAVE EVIDENCE TO PROVE THE MONEY WAS NOT GOING WHERE IT WAS INTENDED.

REGINA GIVENS WON'T BE RETURNING TO HER JOB UNTIL THE AUDITOR COMPLETES A FULL INVESTIGATION.

CITY HALL INSIDERS SAY she HAS VIOLATED THE CITY'S CHARTER WHICH STATES:

City of Dallas Charter
  No officer or employee shall have any financial interest, direct or indirect, in any contract with the city...
 
NO OFFICER OR EMPLOYEE SHALL HAVE FINANCIAL INTEREST, DIRECT OR INDIRECT, IN ANY CONTRACT WITH THE CITY.

GIVENS' HUSBAND IS AN ACCOUNTANT FOR THE  T. R. HOOVER COMMUNITY DEVELOPMENT CORPORATION, AND THAT NON-PROFIT HOUSING ORGANIZATION HAS RECEIVED AT LEAST $100,000 IN CITY GRANTS.

"I've gotten a considerable amount of money."

SHERRY MIXON, WHO RUNS THE NON PROFIT, ADMITS SHE PAYS THE CITY CONTROLLERS HUSBAND FOR ACCOUNTING WORK AND THAT SHE HAS HIRED AN ATTORNEY TO DEFEND HER IN THIS INVESTIGATION. 

Sarah Dodd
CBS 11 News