Exclusive details: Former ABC store manager accused of embezzling over $392k since 2019 & obtaining a loan for $150k
Russel Edward Hester, 71, of Rutherfordton, was arrested last week according to jail records. Cops & Congress obtained the court documents.
Russel Edward Hester, 71, of Rutherfordton, was arrested last week according to jail records. Cops & Congress obtained the court documents. He was the longtime manager of the Rutherfordton ABC Store. I first reported on the arrest on Saturday on X (Twitter), Facebook and Nextdoor.
Hester is accused of stealing over $490,000, including $392,000 in “U.S. currency” and a loan for $150,000, according to court records.
The arrest warrant states his bail was increased to $500k because he threatened to end his life and his wife’s life, who has dementia. His lawyer filed a bond hearing motion to try to get it lowered to $20,000. The motion is pending as of press time.
The Rutherfordton ABC store’s net profits go to education and law enforcement purposes.
70% to Town Council to include law enforcement purposes
15% to Rutherford County Board of Education for Rutherford-Spindale High School
7.5% to Rutherfordton Elementary School
7.5% to Rutherford-Spindale Middle School
“The town is working with the Rutherfordton Alcoholic Beverage Control Board, the new General Manager and (an) outside CPA firm to ensure that funding is distributed as the store charter reflects. Unfortunately due to this issue, these funds may come later in the current fiscal year but we are working towards that under new leadership,” Doug Barrick, Rutherfordton Town Manager, exclusively told Cops & Congress by email. “This situation is uncalled for and unfortunate for our community, much trust is placed in public service and this behavior by one individual erodes all the good that so many have done to improve our community. All parties are working to ensure something like this never happens again and that justice is served in this case.”
Hester’s next court appearance is scheduled for March 27, according to the court’s website. Rutherfordton police have not publicly released any details about the circumstances of the arrest. An email request for comment to Phillip Morrow, Chair of the Rutherford County Board of Education, on Jan. 27, was not returned by press time on Jan. 30. An email request for comment to the ABC Board and other public records requests are pending.
Situational awareness: While this technically isn’t a “scoop” because the local newspaper published a story on Friday, my investigative reporting highlights public records obtained by Cops & Congress. More details are still being confirmed to dive deeper into the oversight of the ABC Store. I was waiting to publish until I received the court records and comments from public officials. (A scoop is an important news story that is first reported by a journalist. This goes a step beyond breaking news when no other journalists are known to be reporting on an important issue.)
Where was the oversight? I will dive into the data and details in the coming days. To date, I have spent nearly 20 hours investigating this story and obtaining documents. I have several public records requests pending. I can’t do it for free. Please support my work with a paid subscription and/or buy me a virtual coffee.
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