Winston-Salem Journal from Winston-Salem, North Carolina • 21

'v THE STATE Ex state official faces charges of illegally getting disaster aid Garrett family and company now face total of 276 counts THE ASSOCIATED PRESS RALEIGH A former state transportation secretary already charged with running an illegal gambling op eration has been charged with fraudulently obtaining tederal disaster loans Garland Garrett Jr was charged by a federal grand jury with obtaining $617000 in fed eral disaster loans for his fami gaming business A federal grand jury released the 30 count indictment Wednesday With the new in dictment the total number of money laundering wire fraud and mail fraud charges against Garrett and his compa ny Cape ear Music Co Inc stands at 276 counts Last year federal prosecutors accused Garrett his father Gar land Garrett Sr 84 and the company of leasing video poker machines to businesses that paid out cash winnings which is illegal understate law tne elder Garrett who lives in a nursing home in Wilming ton and has disease is not charged in the latest in dictments involving the federal loans think there was any improper conduct by our client" Raleigh lawyer Woody Webb Sr said after reviewing the indictment with Garrett's other attorneys Woody Webb Jr and Dan Boyce Pete Kellen an assistant US attorney said that the latest charges accuse the former state olhcial of violating various regu lations of the Small Business Ad ministration when he obtained the loans in 1999 and 2000 The federal agency offers low interest loans to homeown ers renters and business owners affected by disasters After Hurricane Bonnie hit North Carolina in 1998 Garrett secured a $168800 loan to re pair damage to his arcade on the boardwalk at Carolina Beach After Hurricane loyd in 1999 Garrett obtained a $448400 loan Kellen said that Garrett didn't qualify for the loans as the owner of an illegal business let alone a gambling business The prosecutor said that Gar rett made false statements on the loan applications by claim ing damage to machines that damaged in the hurri canes Garrett also received $268900 in insurance money for hurricane losses which was required to be paid toward the federal loans but was not ac cording to the indictment Garrett is accused of using the Hurricane loyd loan to pay back $180000 in other debts which isn't allowed under the loan agreement the indictment said Blow out DiSTR1' WWWWU! rTiiHinrTHTTirTirrTirrirnirTirrTifTTi WS 996 2139 Gboro 370 9215 1 800 682 2232 Huge Selection Over 100 instruments to choose from Way too many to list all at Blow out savings down 0 Interest for 12 months on select Yamaha products 1 40 at Sandy Ridge Road armers Market Exit At 1 40 East Junction New 5 ft Polished Ebony Grands from $5988 Pre owned Steinway Mahagony Grand13500 Great Selection of Preowned consoles spinets studios from s888 New Yamaha Consoles from3488 All Grandfather Clocks 50 90 Days SAC All major credit cards Up to 144 jnontns to pay This incredible Piano Blow out will be held in our distribution center at our I 40 location All of our suppliers are involved to give you the best value in the market place All of our 7 locations have been cleared out of all types of instruments The Blow out consists of old model close outs factory fresh rental returns trade ins college loaners! miss out on the savings Yamaha Clavinovas from1788 Old UPrights199 Cash or Carry WixmoA SmEM XL riday May 24 2002 PAGE B3 A BAVC HKII VI ri May 24 9am 7pm Sat May 25 10am 6pm Sun May 26 1pm 5pm Memorial Day 9am 7pm Memorial Wehouse Piano Color Color Color! 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