Former Executive Director of Southwest Regional Recreation Authority Admits to Embezzling Funds from Spearhead Trail System

ABINGDON, Va. - The former Executive Director of the Southwest Regional Recreation Authority (SRRA) pled guilty yesterday in federal court to bank fraud and embezzlement associated with her scheme to steal money intended for the Spearhead Trail System within the counties of Buchanan, Dickinson, Lee, Russell, Scott, Tazwell, Wise and the City of Norton.

Melissa Slemp, Rose, 56, of Coeburn, Virginia, waived her right to be indicted and pled guilty to a two-count Information charging her with one count of bank fraud and one count of embezzlement.

The SRRA was established in 2008 to oversee the development and management of the Spearhead Trail System. Spearhead Trails consists of three outdoor recreation tourism destinations within its complex. The SRRA receives approximately $1.1 million of general funds per year to operate, including federal funds.

Rose was hired on July 23, 2019, as the Sales and Finance Manager for SRRA. The SRRA Board of Directors promoted Rose to Executive Director in October 2021. As Executive Director, Rose was responsible for the day-to-day operations of the SRRA and the Spearhead Trail System. She resigned from her position on February 3, 2023, following an investigation concerning embezzlement of SRRA funds.

According to court documents, on January 23, 2023, the SRRA learned that Rose had used SRRA funds for her personal use. Specifically, Rose wrote $16,614 in checks drawn on the SRRA's bank account that were purportedly signed by another SRRA board member. The checks were drawn on the SRRA First Bank and Trust Company account and were for the purchase of a residential property priced at $69,5000 with a $15,000 down payment. The property was for Rose's personal use. In an attempt to hide her fraud, Rose logged her payments for the residential property into the SRRA's QuickBooks account management system as purchases for "Tools" with "Land Lease for 5 Years on Mountainview Trail for Conex & SXS Storage" written in the description. She also prepared a fraudulent purchase order and a fraudulent lease for the property, again forging a signature of another SRRA employee.

U.S. Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares made the announcement.

The case was investigated by the Virginia State Police and the U.S. Attorney's Office's Financial Fraud Investigator.

Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General's Major Crimes and Emerging Threats Section, is prosecuting the case.