A ruling has been issued in a change of venue request argued in a Greene County Criminal courtroom earlier this month related to a kickback scheme involving the former President of the Sevier County Utility District.
Matthew Ballard had been indicted in January of this year for misappropriation of over $181,000 from the utility.
An investigation by the Tennessee Comptroller’s Office, working in conjunction with the Tennessee Bureau of Investigation resulted in the indictment of Ballard, the former district president of the Sevier County Utility District which supplies natural gas to more than 14,000 customers.
While hearing other cases in Greene County November 10th, Judge Alex Pearson listened as attorneys for Ballard argued their motion for a change of venue. Among the reasons, about 40% of those who live in that area could be potential jurors as well as being customers of the utility. Publicity in the case was also argued.
In his order, Judge Pearson found that “a jury questionnaire will be sufficient to allow both sides to determine if a potential juror is a customer of the utility in question. Furthermore, the questionnaire will allow both sides to make educated for cause challenges to any prospective jurors.” The court has ordered both parties to submit a proposed short questionnaire to the court for consideration by the close of business tomorrow, Tuesday, November 25th.
The trial is set to begin January 26th of this coming year.
ORIGINAL RELEASE FROM THE TENNESSEE COMPTROLLER OF THE TREASURY
An investigation by the Tennessee Comptroller’s Office, working in conjunction with the Tennessee Bureau of Investigation, has resulted in the indictment of Matthew Ballard, the former district president of the Sevier County Utility District (SCUD) which supplies natural gas to more than 14,000 customers.
Investigators determined that Ballard misappropriated at least $181,582.83 from the SCUD. This includes the following:
Ballard misappropriated $158,760 from the district through a kickback scheme with an electrical company. Ballard requested the owner of the electrical company to overbill the SCUD, then provide a kickback to Ballard or his father, Eddie Ballard.
Ballard misappropriated $18,581.27 in employee payroll by directing district employees to perform work on either his or his father’s personal properties. This work included yardwork, general home maintenance, gravel work, installation of an in-ground pool, and other projects. The employees often used SCUD vehicles and equipment to perform the work.
Ballard directed a SCUD employee to purchase a leaf and lawn vacuum for $4,241.56 that was used exclusively on Ballard’s personal property.
Investigators also identified a number of other issues involving Ballard:
Ballard instructed a district employee to write false information on an invoice in an effort to conceal the fact that he was settling a gambling debt.
Ballard interfered with the investigation by clearing data from his work-assigned devices and directing a SCUD employee to lie to the SCUD board.
Ballard authorized at least $1,704,876.11 in questionable SCUD spending. This included payments such as $778,404.65 to the electrical company that paid him kickbacks, $585,137.57 in payments to a landscaping/construction company without bidding the work, and $118,000 in payments to a consulting firm that paid for alcohol at activities attended by SCUD employees, among others.
Ballard also served as president of SCUD during a previous investigation of the district performed by the Comptroller’s Office in 2011.
Matthew Ballard’s employment with the district was terminated on March 22, 2023. Based upon this investigation, in January 2025, Ballard was indicted by the Sevier County Grand Jury on one count of bribery of a public servant and one count of official misconduct. His father, William Edgar Ballard, was indicted on one count of criminal responsibility for conduct of another.
“Mr. Ballard’s actions and his disregard for the ratepayers within the district are egregious,” said Comptroller Mumpower. “I am disappointed that the Sevier County Utility District board did not provide the oversight necessary to question Ballard’s decisions and expenses, despite the clear warning signs that began with our 2011 investigative report. I know the Tennessee Board of Utility Regulation will be thorough in its review of this case at its next regular meeting.”
