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City of East Point faces backlash after taxpayer money stolen in phishing scam

During a city council meeting Monday night, residents demanded accountability and transparency but also a change in leadership.

ATLANTA — Almost every seat was filled at the East Point City Council meeting Monday night. While there were a number of items on the agenda, almost everyone who showed up at City Hall was there for public comment.

In total, 23 people signed up to speak. All but two of those residents who signed up specifically spoke to members of the city council about a phishing scam-- where more than $1 million was wired to a fake company to pay fake invoices. 

One resident called it, “embarrassing.” 

Almost every resident who stood up before the council-- not only demanded accountability and transparency but also a change in leadership. 

Many of them while talking to the council were looking at City Manager Deron King.

“He (King) needs to be fired tonight. That’s a lot of money. And you guys are being held accountable,” one resident explained. 

In a news release, the City of East Point explained how the U.S. Secret Service was able to freeze one of the wire transfers. 

"As to the cyber-crime actively being investigated by the U.S. Secret Service, a total of $1,219,287 was wired (August 18, 2021 – September 8, 2021). On September 9, 2021, the U.S. Secret Service froze the last wire transaction of $434,197 and the funds were later deposited in the City’s bank account on October 6, 2021. Recovery of the outstanding $785,090 is our top priority," the release stated.

While that happened in late 2021. It was only in late July-- the public became aware of the missing money when an audit report was discussed during a meeting. 

King told the council the reason the information wasn’t shared is because of an ongoing federal investigation by the U.S. Secret Service. 

Residents who spoke to the council on Monday night said that is just not acceptable. Many said he not only let the taxpayers of the city down but also council members themselves as they claim they were also not aware of the close to $1 million in missing taxpayer money. 

Neither King nor council members directly addressed the public comment, where residents called for King's firing or at least putting him on leave.

Not everyone who signed up demanded King lose his job. Two residents got up and asked for patience before making any rash decisions. 

“I implore you for the good of the city and the citizens of East Point, let the process play out and then take action,” a resident said. 

“We cannot be so much the judge and jury at the same time. You just can’t come and say, 'fire someone,'" another resident said. 

11Alive reached out to all council members, the City of East Point and King for a statement on the security breach and the calls for his termination but haven’t heard back as of Monday night.

In a statement sent out by the city, on Mayor Deana Holiday Ingraham’s behalf, she said in part:

I want to assure you that we remain committed to transparency and accountability. We will continue to work together to develop a plan that will not only address our current challenges, but also set us on a path for long-term financial and operational stability. I understand that these are difficult times, but I have faith in our community and our ability to come together to overcome these challenges. We will continue to keep you informed on the audit and financial updates as we move forward and work to build a stronger and more resilient city.

You can read the full statement online here.

See the full audit here

    

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