ROSCOE, Texas — The former City of Roscoe City Manager, Merkle "Cody" Thompson, has been charged with abuse of official capacity for more than $150,000, but less than $300,000.
According to Nolan County court documents, Thompson, when he was a public servant (Roscoe City Manager), with intent to obtain a benefit, intentionally or knowingly, misused government property, services, personnel or any other thing of value belonging to the City of Roscoe that came into the possession and/or custody of Thompson by virtue of his services as a public servant.
The documents state Thompson did these things during his time as a public servant from 2017-2021, and multiple property, services and personnel were abused by him in the "same course of conduct or scheme of criminal conduct". The documents say the total value misused was more than $150,000, but less than $300,000.
The investigation started in December 2019 by the Texas Rangers. Complaints have been filed about Thompson with State Rep. Stan Lambert's office saying he abused his official capacity by using City funds to fund his private business, The Lumberyard in Roscoe.
According to the documents, some of the complaints said Thompson used a City of Roscoe credit card to pay for vendors at The Lumberyard, for bands that played at the venue and to pay for hotel accommodations for the bands that played at the venue.
Texas Ranger Toby Catlin found out Thompson had a Roscoe Industrial Development Corporation board checkbook, but no authority to write checks from the account.
Catlin subpoenaed bank records from the Roscoe State Bank, where the checking account was held, and noticed unusual activities starting in December 2019. He also noticed the signatures of some of the RIDC board members on previous checks did not match those on previous checks and some had what appeared to be small initials next to the signatures. The signatures did not match board members Terry Willman and Randall Smith, who were interviewed and said they did not write the 16 checks in question, totaling $137,632.19.
None of the checks were on the board's agenda and were not approved by board members. Willman and Smith told Catlin they did not sign the checks, nor did they give Thompson permission to do so. Catlin interviewed the bank vice president, who said the checks should have not been accepted because the signatures did not match.
Bank records obtained by Catlin from the City of Roscoe Bank for the debit card issued to Thompson which showed purchases to places such as Walmart, Sam's Club, Home Depot and Ace Mart Restaurant. He got receipts from Sam's and Walmart from purchases made from January 2017 to December 2020 and noticed most were for food items and drinks in bulk, things the City of Roscoe would not typically use.
Statements from CAN-DOO portable restrooms (Abilene) were for Thompson's business and for the City of Roscoe in care of Thompson with the delivery address of 7 Cypress St. in Roscoe, where The Lumberyard is located.
Purchases for the business were made on the debit card in amounts from $363-$649.50.
In an interview with Ranger Catlin, Thompson said the Roscoe Development Corporation said funds from the board can be used for City projects within Roscoe. The board said that was not true when Catlin spoke to them, according to the documents. In the same interview, Thompson admitted signing board member's names to checks without authorization to do so.
Catlin confronted Thompson about multiple checks written on the account, and Thompson admitted signing Willman's and Smith's names on the checks, the documents state. Thompson told Catlin most of the expenditures in question were approved by a board member, "which contradicts what every other board member said which that each of these expenditures were not approved."
Here are the statements Thompson made about the unusual activity on the City's debit card:
- Thompson stated the hotel expense on the City of Roscoe account was for the bands the city brings in for the different festivals. Thompson stated in the contract; the city provides food, beer, wine, and a place to stay. Thompson stated 99 percent of the hotel charges would be for the bands. Thompson stated most of the time; the bands stay at the Microtel in Sweetwater, Texas. Thompson stated the charges to the Lumberyard for the food, beer, and wine for the bands. Thompson stated he had put bands up playing at the Lumberyard on the City of Roscoe Debit Card. However , Thompson stated when it has happened, he always pays the city back.
- Thompson stated the purchase at the Western Gallery in Santo, Texas was for a bronze steer put in the city park. Thompson stated all the purchases were within the budget, so no formal approval was given.
- Thompson stated the CAN-DOO budget charges were for porta-potties for the festivals the city host. Thompson stated the city has a festival in October, July, and March or Aprill. Thompson stated he never used the debit card to pay for porta-potties for the Lumberyard. Thompson stated he does not even get porta-potties delivered to the lumbe ryard, as he has restrooms.
- Thompson stated the charge to Ace-Mart in Haltom City, Texas, was for supplies to city hall. He stated he bought supplies for the Lumberyard but paid it back. Thompson stated he used the Lumberyard account to keep from paying sales taxes. Thompson said 70 to 80 percent were supplies for the city. Thompson stated he had receipts where he paid the money back.
- Thompson stated the charge for Kelly Moore Paints was for paint for the exterior of the Lumberyard.
- Thompson stated the charges for Michael and JoAnn' s are for ribbon they used for the festival.
- Thompson stated the charge for Sam ' s in North Richland Hills, Texas was for supplies for the city of Roscoe, Thompson stated he was in Fort Worth at the time, so he went and bought some supplies.
- Thompson stated the charges to Home2Suites in Stillwater, Oklahoma, was putting up Carl Chillers when he was meeting with some people.
- Thompson stated the flower shop bill was for flowers for the funeral of Chiller's Aunt.
- Thompson stated in May of 2020, hotel charges were for Hydro chemo out of Oklahoma City, Oklahoma, Thompson stated the company does work on the water plant, Thompson said the city pays for the hotel rooms for the workers .
- Thompson stated the food purchases at Sam' s club had been reimbursed to the City of Roscoe, Thompson stated he pays the city back in cash and gets a receipt every time.
- Thompson stated he does pay for personal items with the City of Roscoe debit card but always pays it back.
- Thompson stated he currently has $6,000.00 in cash sitting in his office right now, Thompson stated the money belongs to Roscoe Industrial Development Corporation. Thompson stated he got the money out of Roscoe State Bank and is trying to figure out how to put it back in the bank where it is trackable. Thompson stated it has been there several months.
In receipts obtained by Catlin from the City of Roscoe, Thompson reimbursed the City a total of $3,143.71. In a spreadsheet, Catlin figured a total of possibly unapproved purchases on the debit card from 2017-September 2020 was $20,389.97.
Another interview with Thompson was conducted by Catlin and an FBI agent on July 13, 2021, where Thompson was confronted about the discrepancy in spending and receipts.
Later that week, The Lumberyard caught fire and was a total loss.
