STATE OF NORTH CAROLINA» +» AN THE GENERAL COURT OF JUSTICE COUNTY OF BUNCOMBE . . SUPERIOR COURT DIVISION HIN “48cV 02877 COUNTY OF BUNCOMBE, “~ Plaintiff, SO WANDA SKILLINGTON GREENE and MICHAEL GENE GREENE, Defendants. J COMPLAINT (JURY DEMAND) Plaintiff, complaining of the Defendants, alleges and says the following: 1. Plaintiff, the County of Buncombe [Buncombe County” or “the County”), is a political subdivision of the State of North Carolina; is a “county” as defined in N.C.G.S. § 153A- 1 and N.C.GS. § 153A-10; and has those corporate powers set forth in Article 2 of Chapter 153A of the North Carolina General Statutes, including but not limited to the power to sue. 2. Defendant Wanda Skillington Greene [“Greene”] is a citizen and resident of Henderson County, North Carolina. Greene was the County Manager of Buncombe County from around July 1997 until June 2017. 3. Defendant Michael Gene Greene [*Michael Greene”] is Greene's son and a citizen and resident of Buncombe County, North Carolina, Michael Greene was a full-time employee of Buncombe County from 2005 until around August 2017. 4. Consolidated Planning, Inc. (“Consolidated Planning”] is a corporation duly formed and existing under the laws of the State of North Carolina; having its principal place of business in Mecklenburg County, North Carolina; and engaging in the business of insurance sales in North Carolina. 5. Boyd “Bo” Franklin Cauble [“Cauble”] is a citizen and resident of Mecklenburg County, North Carolina, Cauble is a Registered Representative and Financial Advisor providing services through Consolidated Planning. 6. Atall times relevant to the events alleged in this action, Cauble has been an agent of Consolidated Planning acting in the course and scope of his agency with Consolidated Planning.7. In this action, Buncombe County seeks equitable and monetary relief to remedy damages caused by the Defendants’ fraudulent and tortious conduct diverting and converting Buncombe County’s funds. Buncombe County's “County Manager” Form of Government At all times relevant to the events alleged in this action, Buncombe County has had a “county manager” form of government, under which the citizens of the County elect a Board of County Commissioners and the Board appoints a county manager to serve as the chief’ administrator of county government, pursuant to N.C.G.S. § 153A-81 and N.C.G.S. § 153A-82. 9. With the powers and duties enumerated in N.C.GS. § 153-82, the county manager directs and supervises the administration of all county offices, departments, boards, commissions, and agencies under the general control of Board of Commissioners, subject to the general direction and control of the Board. 10. Pursuant t0 N.C.G.S responsible to the Board of Commissioners for admi government under the Board’s general control. § 153A-82, the county manager is a public officer in of all departments of county 11. Under N.C.G.S. § 1534-92, the county manager is responsible for preparing position classification and pay plans for submission to the Board of Commissioners and for administering the position classification and pay plans in accordance with the general policies and directives adopted by the Board of Commissioners. 12. NCGS. § 153A-92 requires the county manager to prepare and submit an annual budget to the County Commissioners and to annually submit to the Board of Commissioners a complete report of the finances and administrative activities of the county at the end of the fiscal year 13, Around May 1994, Buncombe County hired Greene as an Assistant County Manager. 14. Around July 1997, the Board of Commissioners of Buncombe County appointed Greene as County Manager. 15. Inearly 2005, Buncombe County hired Michael Greene as a permanent employee in the Human Services Department. Buncombe County P-Cards 16. From 2007 through 2017, Buncombe County provided certain employees with corporate Visa credit cards, known as “P-Cards” or “purchasing cards,” issued by the Bank of America to Buncombe County.17. Atall times from and after September 16, 2008, Buncombe County had a written policy concerning the P-Cards [“the P-Card Policy”), and the P-Card Policy required each cardholder-employee to sign an acknowledgement that they had read such policy and agreed to adhere to its terms. 18. The P-Card Policy provided that each P-Card “will have the employee's name and department embossed on it and shall ONLY be used by that cardholder. NO OTHER PERSON IS AUTHORIZED to use that card.” 19. The P-Card Policy defined unauthorized use of the P-Card as including, without limitation, “Alcoholic Beverages” and “Personal purchases of any kind.” 20. Further, the P-Card Policy expressly provided that “[ulse of a P-Card to acquire goods or services that are unauthorized and intended for personal use or gain constitutes a fraud against the County.” 21. From October 2007 through January 2009, Michael Greene had a Buncombe County P-Card and used the P-Card for personal purchases of several thousand dollars, including but not limited to payments on personal cellular and wireless service accounts and purchases of an electric toothbrush, multiple DVD movies, Krispy Kreme donuts, air mattresses, a New York City theater ticket, and Papa John’s Pizza 22. Around January 2009, Buncombe County revoked Michael Greene's P-Card privileges after an audit resulted in a determination that he had engaged in “systematic fraud against the government of Buncombe County.” After the County’s Internal Auditor referred the matter to the County’s Finance Director and the County Manager, Greene, Michael Greene was required to reimburse the County a total of $1,579.21 but was neither suspended nor terminated, 23. Atall times between 2007 and 2011, Greene had one or more P-Cards. 24, Upon information and belief, from 2007 through 2011, Greene, as County Manager, assumed, without Board approval, the responsibility of reviewing and ultimately approving her own P-Card purchases. 25. Between 2007 and 2011, Greene used her P-Cards for personal purchases totaling tens of thousands of dollars, including but not limited to payments on personal cellular and wireless accounts; purchases of personal electronic devices and retail gift cards; and personal purchases at Target, T/Maxx, Walmart, Tuesday Morning, Best Buy, Barnes & Noble, Amazon, Bed Bath & Beyond, and Toys R Us. 26. In 2011, Greene returned her P-Cards to Buncombe County and ceased using any P-Cards issued directly to her. 27. Upon information and belief, from 2011 through June 2017, Greene and Michael Greene used P-Cards issued to several of Greene’s subordinate County employees to make personal purchases and purchases for their personal benefit28. Upon information and belief, from 2011 through June 2017, Greene required certain subordinate employees to provide her photocopies of the front and back of P-Cards issued to them and required these subordinates to provide her updated photocopies when Buncombe County issued new P-Cards to such subordinates. 29. Upon information and belief, with the knowledge and agreement of Greene, Michael Greene also received photocopies of one or more P-Cards issued to Greene’s subordinate employees and used the information on such photocopies to make personal purchases and purchases otherwise contrary to the Buncombe County P-Card Policy. 30. Further, upon information and belief, from 2011 through June 2017, Greene directed certain subordinate employees to use their P-Cards to make purchases for improper purposes and for the sole personal benefit of Greene and/or Michael Greene. 31. Upon information and belief, between 2011 and June 2017, Greene and Michael Greene caused the use of P-Cands issued to Greene’s subordinates for personal purchases totaling tens of thousands of dollars, including but not limited to payments for cellular and wireless service accounts for their personal benefit and their family’s benefit; for purchases of cellular and wireless devices for their personal use or their family’s use; and for the purchase of four Bose systems, meals at 12 Bones Restaurant and Atlanta Bread Company, and retail gift cards for their personal use. 32. Upon information and belief, Greene received and used retail gift cards purchased using her subordinates’ P-Cards to make personal purchases totaling tens of thousands of dollars, including but not limited to wine, electric toothbrushes, clothing, bedding, gasoline, groceries, toiletries, makeup, thermal underwear, and lingerie ERD Upon information and belief, Michael Greene also received and used retail gift cards purchased using P-Cards issued to Greene’s subordinates to make personal purchases for his benefit 34. Upon information and belief, Greene represented, to one or more of her subordinate employees, that certain expenditures made using the subordinates’ P-Cards, including but not limited to the purchase of cellular and wireless devices and the purchase of retail gift cards, was at the request of one or more County Commissioners and for the purposes of county business. Upon information and belief, such representations were false and known by Greene to be false. Board of County Commissioners to Fix or Approve Compensation 35. N.C.G.S. § 153A-92(a) provides that “the board of commissioners shall fix or approve the schedule of pay, expense allowances, and other compensation of all county officers and employees, whether elected or appointed, and may adopt position classification plans,36. Under North Carolina law, to enter a valid and binding contract regarding employment compensation, the Board of County Commissioners must act in its corporate capacity in an open meeting duly held as prescribed by law. 37. A County Commissioner cannot contractually bind the county when he or she acts individually, informally, and separately, and an individual County Commissioner acting in his or her official capacity may make a contract concerning an employee's compensation binding on the county only if so authorized by formal action of the entire Board of County Commissioners. 38. Under N.C.GS. § 153A-92(c), the county manager is the public officer “responsible for preparing position classification and pay plans for submission to the board of commissioners and for administering the pay plan and any position classification plan in accordance with general policies and directives adopted by the board.” 39. Under North Carolina law, the county manager does not have the unilateral power or authority to enter any agreement regarding employee compensation, except as provided by position classification and pay plans or pursuant to express delegation from the County ‘Commissioners acting in its corporate capacity in a meeting duly held as prescribed by law 40. N.C.GS. § 153A-92(d) provides, in pertinent part, as follows: “A county may purchase life insurance or health insurance or both for the benefit of all or any class of county officers and employees as a part of their compensation. A county may provide other fringe benefits for county officers and employees.” County Commissioners Had Approved No Life Insurance Benefits as Employment Compensation, Except Basic Term Life Policies for All Eligible Employees 41, At all times during and after 2015, Section 7 of Article VII of the Buncombe County Personnel Policy, duly adopted and amended by the Board of County Commissioners acting in its corporate capacity in meetings duly held as prescribed by law, provided limited life insurance benefits as additional compensation for all eligible, regular employees of Buncombe County, as follows: “A. All eligible employees in regular positions are covered with Basic Life and Accidental Death and Dismemberment Insurance. The County pays 100% of the premium. B. In addition to the Basic Life Insurance, each eligible employee has the opportunity to enroll in additional life insurance in optional amounts. The employee pays the entire cost of the premium, but low group wholesale rates are available on a convenient payroll deduction basis. C. Employee may purchase coverage on eligible dependents. D. — Alleligi je employees may purchase coverage on their spouse.”42. At all times during and after 2015, pursuant to the Personnel Ordinance, Buncombe County provided and paid for a basic term life insurance policy with a face value of $30,000 to all eligible employees in regular positions, after their first six months of employment, as part of their compensation. 43, Atall times during and after 2015, each eligible Buncombe County employee also hhad the opportunity to purchase supplemental life insurance coverage, in an additional amount up to $100,000, at the employee’s own expense. 44, The life insurance benefits described in Article VII, Section 7 of the Buncombe County Personnel Ordinance and in paragraphs #42 & #43 above were the only life insurance benefits that Buncombe County provided and paid for, as employment compensation, at any time from and since 2015, with the approval and authorization of the Board of County Commissioners acting it its corporate capacity in a meeting duly held as prescribed by law. The Board of County Commissioners acting in its corporate capacity in a meeting duly held as prescribed by law never approved, adopted, or authorized the provision and payment for any other life insurance benefits, as employment compensation, applicable to any period in or after 2015. 45. During fiscal year 2015-2016 and fiscal year 2016-2017, the budgets and budget amendments adopted and approved by the Board of County Commissioners did not appropriate or allocate any monies for payments for life insurance, as employment compensation, other than the basic term life insurance provided to all eligible employees in regular positions pursuant to the Personnel Ordinance. Greene Caused Use of County Funds to Pay for Whole Life Policies Issued to Handful of County Employees She Selected 46. Between October 2015 and January 2017, Greene caused County funds to be used and expended to procure and pay for whole life policies that Guardian Life Insurance Company of America [“Guardian”] issued to @ handful of County employees that, as a group, did not constitute or belong to any class(es) of County officers or employees. 47, Greene determined which County employees would receive these whole life insurance policies as well as the amount of Buncombe County funds that would be used to purchase each respective whole life policy. 48. Further, Greene caused the County to not only pay the initial premium for such whole life policies but to also remit payment for premiums for multiple years in advance, in part by regular payments made at her direction from late 2015 through summer 2017 49. Each County employee who received one of these whole life policies immediately became the sole owner of the policy, which had resulting cash value that could be borrowed against or obtained upon surrender.50. Upon information and belief, before or around October 2015, Greene sought to obtain from Guardian a whole life policy for herself, as part of the group of whole life policies obtained with County funds, but Guardian originally denied her life insurance application. 51. Upon information and belief, after Guardian denied Greene's application for whole life insurance, Cauble, acting for and on behalf of Consolidated, proposed that Greene cause the County to wire $300,000 of its funds into a money market account with Guardian's subsidiary, Park Avenue Securities 52. With the knowledge and assistance of Cauble, acting for and on behalf of Consolidated, Greene ultimately caused the County to wire $310,000 of its funds into a money market account controlled by Greene [“the Money Market Account”) 53. Upon information and belief, around May 2016, Guardian approved Greene's application for whole life insurance. 54, Around June 2016, with the knowledge and assistance of Cauble, acting for and on behalf of Consolidated, Greene wired $210,000 from the Money Market Account to Guardian to make the initial premium payment and multiple years of advance payments for two whole life insurance policies issued to Greene, as owner. 55. Around June 2016, with the knowledge and assistance of Cauble, acting for and on behalf of Consolidated, Greene wired $100,000 from the Money Market Account to Guardian to make the initial premium payment and multiple years of advance payments for one or more whole life insurance policies issued to Michael Greene, as owner. 56. Between June 2016 and January 2017, Greene ultimately caused at least $458,000 of Buncombe County's funds to be diverted and expended as payments for whole life insurance policies that Guardian issued to Greene. 57. Between June 2016 and January 2017, Greene caused at least $100,000 of Buncombe County’s funds to be diverted and expended as payments for whole life insurance policies that Guardian issued to Michael Greene. 58. Between October 2015 and September 2016, Greene caused at least $1.58 million of Buncombe County funds to be diverted and expended as payments for whole life insurance policies that Guardian issued to a handful of Buncombe County employees other than Greene and Michael Greene. 59, Moreover, Greene caused Buncombe County to wire Guardian at least $1.85 million of the County funds paid for whole life policies by executing and delivering to subordinates documents titled “Authorization Letter to Transfer Funds,” identifying Greene as “Trustee” of the “Buncombe County Insurance Plan” and identifying such plan as having a beneficial interest in policy number C1584.60. Further, with the knowledge and assistance of Cauble, acting for and on behalf of Consolidated, Greene caused Buncombe County to wire another $150,000 of its funds to a Bank of New York account and then later applied such funds to the purchase of a Guardian annuity contract for the benefit of another County employee. 61. Upon information and belief, from around summer 2015 through June 2017, Greene falsely represented to the Finance Department and to the Buncombe County employees to whom Guadian issued the whole life policies (other than Michael Greene) that the County Commissioners had approved and authorized the County’s payment for whole life policies as compensation for certain employees she designated and that such expenditures had been duly and properly authorized. 62. Upon information and belief, from around summer 2015 through June 2017, Greene falsely represented to the Finance Department and to the Buncombe County employee benefitted by the Guardian annuity contract that the County Commissioners had approved and authorized the County’s payment of $150,000 for the “Buncombe County Insurance Plan” benefitting such employee and that such expenditures had been duly and properly authorized. 63. Upon information and belief, Greene advised the county employees to whom Guardian issued the whole life policies (other than Michael Greene) and the county employee benefitted by the annuity contract that the annuity contract and whole life policies were personnel matters and that they should keep the existence and amount of any annuity contract or whole life policy issued to them confidential. 64, Shortly before announcing her intention to retire effective June 30, 2017, Greene prepared and delivered to the County’s Budget Director a handwritten note directing the Finance Department to increase the regular quarterly payments to Guardian to $160,000, or a total of $640,000 each year, to pay premiums and other amounts payable under the whole life policies. 65. The Finance Director told Greene that the Finance Department could not increase the regular quarterly payments to $160,000 without approval in writing from the current Board of County Commissioners. Greene then tore up the handwritten note, asked if that resolved his concems, and told him to forget about any further payments. Greene Received Retention Incentive Payments Based Upon Forged Documents 66. In or around 2014, the Board of County Commissioners adopted and approved the 2014 Buncombe County Employee Retirement Incentive Plan, as part of the Buncombe County Personnel Ordinance. 67. In June 2016, the Board of County Commissioners amended the Retirement Incentive Plan attached to the Buncombe County Personnel Ordinance by deleting Section LA and replacing it with the following: “A. The 2014 Buncombe County Employee Retirement Incentive Plan includes:1, One year of the employee’s annual salary to be paid out on a bi-weekly basis over three years or may be advanced for retention purposes as approved by the Board Chairman or County Manager. Any remaining payments shall terminate upon the retiree’s death and any remainder shall not be paid out to the retiree’s beneficiary or estate.” 68. Around August 1, 2016, a Buncombe County Personnel Action Form was executed with the purported signature of David Gantt, then the Chairman of the County Commissioners, approving “Retention Incentive” payments to Greene over a 25-month period beginning August 5, 2016 and ending August 31, 2018; specifically, providing as follows “Retention Incentive payment for 55 pay periods starting 8/5/2016 through 8/31/2018 in the amount of $4,396.19 each pay period. Ms. Greene shall not be eligible Section 1.A.1 of the Buncombe County Early Retirement Plan or as amended when Ms. Greene retires.” 69. In August 2016, Greene in fact received from Buncombe County two payments of $4,396.16 each, based upon this first Personnel Action Form. 70. Around August 29, 2016, a Buncombe County Personnel Action Form was executed with the purported signature of David Gantt, then the Chairman of the County Commissioners, approving “Revised Retention Incentive” payments to Greene over a 16-month ginning September 2, 2016 and ending December 22, 2017; specifically, providing as “Revised Retention Incentive payment for 35 pay periods starting 9/2/16 through 12/22/2017 in the amount of $6,657.09 each pay period. Ms. Greene shall not be eligible Section 1.A.1 of the Buncombe County Early Retirement Plan or as amended when Ms. Greene retires.” 71, Between September and November 2016, Greene in fact received from Buncombe County seven payments of $6,657.09 each, based upon this second Personnel Action Form, 72. On ot about November 21, 2016, a Buncombe County Personnel Action Form was executed with the purported signature of David Gantt, then the Chairman of the County Commissioners, approving “Revise[d] Retention Incentive Payment{s]” to Greene over a 6- month period beginning January 6, 2017 and ending June 23, 2017; specifically, providing as follows: “Revise Retention Incentive Payment for 13 pay periods starting, 1/6/2017-6/23/17 in the amount of $14,291.79 each pay period. Ms. Greene shall not be eligible Section 1.A.1 of the Buncombe County Early Retirement Plan or as amended when Ms. Greene retires.”73. Between January and June 2017, Greene in fact received from Buncombe County 13 payments of $14,291.79 each, based upon this third Personnel Action Form, 74, All together, Greene received from Buncombe County a total of $241,185.22 in Retention Incentive payments over the I1-month period extending from August 2016 through June 2017. 75. Upon information and belief, David Gantt did not sign any of the foregoing Personnel Action Forms and did not authorize anyone else to sign such Personnel Action Form in his name and on his behalf. Greene's Retirement 76, Greene retired as County Manager on or around June 30, 2017, 77. Upon information and belief, Greene falsely represented to Buncombe County the amount of vacation, sick leave, and annual leave she had accrued and was entitled to receive payment for, and Greene in fact received overpayment for accrued vacation, sick leave, and annual leave based upon these misrepresentations at the time of her retirement. 78. At the time of Greene’s retirement, none of the County Commissioners knew about Greene’s use of her P-Card for personal purchases; Greene’s and Michael Greene's use of P-Cards issued to Greene's subordinates to make personal purchases; Greene's and Michael Greene’s personal purchases using retail gift cards bought with County funds; the transfer of County funds to the Money Market Account controlled by Greene; the use of County funds to procure and pay for whole life policies and the annuity contract; Greene's overstatement of accrued vacation, sick leave, and annual leave accrued; and the forged signatures of Commissioner Chairman Gant allowing Greene to collect Retention Incentive payments over an 11-month period preceding her retirement. 79. Shortly after retirement, Greene cashed out her two Guardian whole life policies in order to receive accumulated cash values of the whole life policies, plus the value of the prepaid premiums held by Guardian, 80. Upon information and belief, on or around July 13, 2017, Greene received a total of $395,859.60 by cashing out such whole life policies, 81, Upon information and belief, on or around August 7, 2017, Greene wired $155,000 of the proceeds that Guardian had paid Greene upon cashing out the whole life policies toa Tennessee law firm’s account held at F&M Bank in Clarksville, Tennessee, for the purposes of a real estate transaction and in an attempt to defraud creditors, to conceal and secret assets, and to avoid detection and liabilitiesS. TION 82. Pursuant to Rule 10(¢) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#81 above, as if fully set forth and realleged. 83. The funds that Greene caused to be transferred to the Money Market Account controlled by her constitute unlawful compensation from Buncombe County. 84. The two whole life policies issued and provided to Greene, at the County's expense, constitute unlawful compensation from Buncombe County 85. The two whole life policies procured and issued to Michael Greene, resulting from County payments exceeding $100,000.00, constitute unlawful compensation from. Buncombe County. 86. Buncombe County’s overpayment of accrued vacation, sick leave, and annual leave, based upon Greene's overstatement and misrepresentations, constitute unlawful compensation received by Greene. 87. The Retention Incentive payments to Greene, without proper approval or authorization, constitute unlawful compensation from Buncombe County. 88. As a direct and proximate result of the Defendants’ receipt of unlawful compensation, Buncombe County has sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). Under North Carolina law, Buncombe County is entitled to recover from. Greene and Michael Greene all unlawful compensation paid to or received by each of them, as alleged herein. COND CLAIM FOR RELIEF: ACTIONABI MISUSE OF PUBLIC FUNDS 89, Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#88 above, as if fully set forth and realleged. 90. Greene, as a public officer and County Manager, caused public funds to be used and applied for the transfer of funds to the Money Market Account she controlled, for payments for the whole life policies issued to Greene and Michael Greene, for payments for the whole life policies issued to County employees other than Greene and Michael Greene, for payments for the annuity contract for the benefit of another County employee, for personal purchases by use of P-Cards, for personal purchases by use of retail gift cards bought with County funds, for purported Retention Incentive payments over an 11-month period based upon forged Personnel Action Forms, and for overpayment of accrued vacation, sick leave, and annual leave.91. By such expenditures, Greene caused public funds to be used and applied wrongfully, willfully, and knowingly; corruptly and with malice; without adequate consideration in exchange for such payments; and with intent to evade the law 92. Asa direct and proximate result of Greene's actionable misuse of public funds, Buncombe County has sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). Under North Carolina law, Greene, as a public officer, is responsible and liable to Buncombe County for these illegal and unauthorized uses and transfers of public funds. VERSION 93. Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#92 above, as if fully set forth and realleged, 94, Greene and Michael Greene converted Buncombe County funds to their own use by their unauthorized exercise of ownership and dominion over the County’s funds, by their unauthorized exclusion of Buncombe County from exercising its rights of ownership over its own funds without authority, and by their unauthorized retention of the County’s funds, or the proceeds thereof, after Buncombe County demanded their return and surrender. 95. Without limiting the foregoing, Greene and Michael Greene converted Buncombe County funds by making personal purchases on their own respective County-issued P-Cards, by making personal purchases using retail gift cards purchase with County P-Cards, and by using or causing the use of P-Cards issued to Greene's subordinate employees for purchases for the personal benefit of Greene and Michael Greene. 96. Without limiting the foregoing, Greene converted Buncombe County funds by causing such funds to be used and expended to procure and pay for whole life policies for Greene individually, Michael Greene individually, and a handful of other Buncombe County officers and employees, all without any action by the Board of County Commissioners approving, adopting, or authorizing such life insurance as employment compensation, 97. Upon information and belief, Michael Greene conspired with Greene to convert County funds to procure and pay for the whole life policies issued to Michael Greene. 98. Further, Michael Greene converted Buncombe County funds by refusing to assign to Buncombe County the whole life policies issued to him but paid for using Buncombe County funds, after and despite Buncombe County's demand that he assign such policies. 99. In addition, Greene converted Buncombe County funds by causing County funds to be transferred to the Money Market Account controlled by Greene and by causing the sue of County funds to pay for the annuity contract for the benefit of another Buncombe County employee, without any action by the Board of County Commissioners approving, adopting, or authorizing such transfer or use of County funds.100. Greene converted Buncombe County funds by receiving Retention Incentive payments based upon forged personnel documents and by receiving overpayment of accrued vacation, sick leave, and annual leave at the time of her retirement 101. As a direct and proximate result of the Defendants’ conversion, Buncombe County has sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). 102. Buncombe County is entitled to recover from Greene and Michael Greene punitive damages in excess of Twenty-Five Thousand Dollars ($25,000.00) by reason of their fraudulent, malicious, and willful and wanton conduct constituting conversion FOURTH CLAIM FOR RELI CONSTRUCTIVE FRAUD 103. Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#102 above, as if fully set forth and realleged 104. tall times relevant to the events alleged herein, Greene, as County Manager and a public officer, owed a fiduciary duty to Buncombe County. 105. Atall times relevant to the events alleged herein, Greene, holding herself out as Trustee of the “Buncombe County Insurance Plan,” owed a fiduciary duty to Buncombe County. 106. Greene breached her fiduciary duty to Buncombe County by taking advantage of her position of trust in order to benefit herself personally, as follows: (a) By causing Buncombe County funds to be wired to the Money Market Account she controlled; (b) By causing the use and expenditure of Buncombe County funds to procure and pay for whole life policies issued to Greene individually, without any action by Board of County Commissioners approving, adopting, or authorizing issuance of such life insurance; (©) By using P-Cards issued to her for personal purchases; (4) By using P-Cards issued to subordinates for personal purchases; (©) By using retail gift cards purchased with County funds for personal purchases; () By claiming and receiving Retention Incentive payments, based upon forged personnel documents; and (g) By misrepresenting the amount of vacation, sick leave, and annual leave she had accrued and receiving overpayment based upon such mistepresentations.107. Upon information and belief, Michael Greene conspired with Greene to use the P- Cards of Greene’s subordinates and retail gift cards obtained with Count funds, for their personal purchases and purchases for their personal benefit. 108. Greene’s constructive fraud by transferring Buncombe County funds into the Money Market Account she controlled and by using Buncombe County funds to procure and pay for a whole life policy issued to Greene has caused irreparable damages for which Buncombe County does not have an adequate remedy at law, by reason of the diversion or loss of public funds, for which Buncombe County has a special responsibility, and by reason of Greene’s actions for the purpose of defrauding creditors and concealing assets, including her efforts to remove assets from the jurisdiction of the State of North Carolina. Buncombe County is entitled to a constructive trust upon the Buncombe County funds used and converted in such constructive fraud, upon any proceeds of such funds, and upon any property purchased with such funds, regardless of whose name Greene has placed nominal title or ownership. 109, As a direct and proximate result of Greene's constructive fraud and the Defendants’ conspiracy to engage in the acts constituting Greene’s constructive fraud, Buncombe County has sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). 110. Buncombe County is entitled to recover from Greene and Michael Greene punitive damages in excess of Twenty-Five Thousand Dollars ($25,000.00) by reason of their fraudulent, malicious, and willful and wanton conduct, FIETH CLAIM FOR RELIEF: BRI CH OF FIDUCIARY DUTY 111, Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff’ hereby incorporates by reference paragraphs #1-#110 above, as if fully set forth and realleged. 112. Greene breached her fiduciary duties to Buncombe County by the actions, omissions, and conduct alleged herein, including but not limited to the conduct alleged in paragraphs #94, #95, #96, #99, #100, and #106 above. 113. Upon information and belief, Michael Greene conspired with Greene to use the P- Cards of Greene’s subordinates for personal purchases, to use retail gift cards obtained with County funds for personal benefits, and to use County funds to procure and pay for the whole life pol ued to Michael Greene. 114, Greene’s breach of fiduciary duty by transferring Buncombe County funds into the Money Market Account and by using Buncombe County funds to procure and pay for a whole life policy issued to Greene will cause irreparable damages for which Buncombe County does not have an adequate remedy at law, by reason of the diversion or loss of public funds, for which Buncombe County has a special responsibility, and by reason of Greene’s actions for the purpose of defrauding creditors and concealing assets, including her efforts to remove assets from the jurisdiction of the State of North Carolina. Buncombe County is entitled to a 4constructive trust upon the Buncombe County funds used and applied in such breach of fiduciary duty, upon any proceeds of such funds, and upon any property purchased with such funds, regardless of whose name Greene has placed nominal title or ownership. 115. As a direct and proximate result of Greene’s breach of fiduciary duty and the Defendants’ conspiracy to engage in the acts constituting Greene’s breach of fiduciary duty, Buncombe County has sustained damages in excess of Twenty-Five Thousand Dollars (825,000.00) SIXTH CLAIM FOR RELIEF: FRAUD 116. Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#115 above, as if fully set forth and realleged, 117. Greene made the false representations conceming the County Commissioners’ purported approval of the whole life policies and the annuity contract, conceming her use of her subordinates’ P-Cards and gift cards, concerning the amount of her accrued vacation, sick leave, and annual leave, and conceming approval of the Personnel Action Forms allowing her to receive Retention Incentive payments, all as alleged in paragraphs #34, #61, #62, and #68-#75, and #77 above, with knowledge of the falsity of such representations and with intent to deceive, and employees of Buncombe County were in fact deceived by such misrepresentations and did in fact rely upon such misrepresentations, to the detriment of Buncombe County. 118. Greene's fraud has caused irreparable damages for which Buncombe County does not have an adequate remedy at law, by reason of the diversion or loss of public funds, for which Buncombe County has a special responsibility, and by reason of Greene's actions for the purpose of defrauding creditors and concealing assets, including her efforts to remove assets from the jurisdiction of the State of North Carolina, Buncombe County is entitled to a constructive trust ‘on the Buncombe County funds, upon any proceeds of such funds, and upon any property purchased with such funds, regardless of whose name Greene has placed nominal title or ownership, 119, Upon information and belief, Michael Greene conspired with Greene to defraud Buncombe County by use of the P-Cards of Greene’s subordinates for personal purchases, by use of the retail gift cards obtained with County funds for personal benefits, and by use of County funds to procure and pay for the whole life policy issued to Michael Greene. 120. Asa direct and proximate result of Greene’s fraud and the Defendants’ conspiracy to engage in the acts constituting Greene’s fraud, Buncombe County has sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). 121. Buncombe County is entitled to recover from Greene and Michael Greene punitive damages in excess of Twenty-Five Thousand Dollars ($25,000.00) by reason of their fraudulent, malicious, and willful and wanton conduct.si TH CLAIM FOR RELI ‘AIR OR DECE TIVE TRADE ACTS 122. Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#121 above, as if fully set forth and realleged. 123. Greene's fraud, constructive fraud, breach of fiduciary duty, and self-dealing transactions; Greene’s and Michael Greene’s conversion with egregious and aggravating circumstances; and Greene and Michael Greene's conspiracy to engage in such fraudulent and tortious conduct, as alleged herein, constitute unfair or deceptive trade acts or practices in or affecting commerce in North Carolina. 124. Asa direct and proximate result of the Defendants’ unfair or deceptive trade acts or practices, Buncombe County sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). 125, The Defendants engaged in these unfair or deceptive trade acts or practices willfully EIGHTH CLAIM FOR RELIEF: NORTH CAROLINA RICO 126. Pursuant to Rule 10(c) of the North Carolina Rules of Civil Procedure, the Plaintiff hereby incorporates by reference paragraphs #1-#125 above, as if fully set forth and realleged. 127. From 2007 through June 2017, Greene and Michael Greene conspired to engage, and in fact engaged, in a pattern of racketeering activity and, through a pattern of racketeering activities or through proceeds derived therefrom, acquired and maintained money and other personal property 128. Without limiting the foregoing, Greene’s and/or Michael Greene’s actions, omissions, and conduct alleged herein constituted violations of the following: (@) NCGS. § 14-90, prohibiting embezzlement, fraudulent conversion, and knowing and willful conversion by a person holding a public office; (6) NCGS. § 14-92, prohibiting embezzlement and willful and corrupt misuse of moneys or property by public officers of any county; (©) —_N.C.G.S. § 14-100, prohibiting obtaining property by false pretenses; @ NCGS. § 14-231, prohibiting any county officer from failing to pay over or deliver to the proper person all moneys which come into her hands by virtue or color of her office; () —_ N.C.GS. § 14-2.4, prohibiting conspiracies to commit felonies; 16(k) 18 U.S.C. § 1343, prohibiting wire fraud; and ()) 18 U.S.C. § 1956, prohibiting money laundering 129. Concurrently with the filing of this action, Buncombe County has provided the North Carolina Attomey General notice in writing of this action, in accordance with N.C.G.S. §75D-8. 130. Pursuant to N.C.G.S. § 75D-8(a)(1), Buncombe County is entitled to an order divesting Greene and Michael Greene of the money and personal property obtained through their racketeering activities, or the proceeds thereof, or any property that either of them have purchased using such funds or proceeds, 131. As a direct and proximate result of the Defendants’ violations of the North Carolina RICO Act, Buncombe County sustained damages in excess of Twenty-Five Thousand Dollars ($25,000.00). 132. Pursuant to N.C.G.S. § 75D-8(c), Buncombe County is entitled to recover from Greene and Michael Greene three times its actual damages sustained and its reasonable attomeys’ fees. WHEREFORE, the Plaintiff prays the Court as follows: 1, That Buncombe County have and recover from the Defendants, jointly and severally, compensatory damages in excess of Twenty-Five Thousand Dollars ($25,000.00), together with interest as provided by law, for conversion, constructive fraud, breach of fiduciary duty, fraud, and unfair or deceptive trade acts; 2. That Buncombe County have and recover from the Defendants punitive damages in excess of Twenty-Five Thousand Dollars ($25,000.00) by reason of the Defendants’ conversion, constructive fraud, fraud, and conspiracy; 3. That Buncombe County recover from Defendants three times its actual damages, pursuant to N.C.GS. § 75-16 and N.C.GS. § 75D-8; 4. That the Court impose a constructive trust upon all County funds that the Defendants obtained by their fraudulent and tortious conduct and in violation of the North Carolina RICO Act, and the proceeds thereof; 5. That Buncombe County have and recover from the Defendants its reasonable attorneys fees pursuant to N.C.GS. § 75-16.1, N.C.GS. § 75D-8, and as otherwise provided by law; 6. That the costs of this action be taxed against the Defendants; ”7. Foratrial by jury; and 8. Forsuch other and further relief as the Court may deem just and proper. This, the ) 2 day of June, 2018. Long, Parker, Warren, Anderson, Payne & McClellan, P.A. Post Office Box 7216 Asheville, North Carolina 28802 Telephone: 828/258-2296/ ) Ronald K. Payne N.C. Bar N° 7961 Philip §. Anderson N.C. Bar N? 21323,