THE JARVIS FILE
1. The 1992 INVESTIGATION
A 1992 investigation by the DeKalb County District Attorney, although finding many shady and improper financial dealings involving Jarvis refused to indict Jarvis concluded that "none of the violations constitutes a violation of existing Georgia Criminal law." the report concluded: "Such a conclusion illustrates the lack of effective public corruption and ethics laws in Georgia."
Apparently Jarvis' financial problems began in 1983 when Jarvis became involved with a new trucking company KKS. The company went bankrupt saddling Jarvis with a $400,000 debt secured in part by a second mortgage on Jarvis' home. While the principal of KKS, Krusensterna was eventually indicted in 1985 on federal charges related to the finances of KKS, Jarvis was not. Jarvis became a federal witness against Kruscnsterna who was acquitted.
Through this experience Jarvis met David Dwyer who then developed several unsuccessful businesses together. Jarvis became indebted to Dwyer. In June, 1990, Jarvis and Dwyer entered into a marketing agreement to solicit Business on behalf of Dwyer's body shop, rainbow. In exchange, Jarvis was to receive 5% or the dollar amount of all sales he referred to Rainbow.
Dwyer made a series of "loans" to Jarvis. Dwyer loaned Jarvis $116,842.19 to repay Jarvis' personal debts. There were no written terms of this loan and no record that any sum was ever repaid. One of the loans that Jarvis paid of was a questionable loan from Mountain National Bank. Jarvis received an unsecured loan of $30,000 in 1983. From 1983 until 1990 Jarvis did not pay any off the balance of the loan. Dwyer made money off his relationship with Jarvis in a series of questionable, if not illegal, deals.
Jarvis repeatedly lied to tho Investigators for the District Attorney's office during the investigation.
2. JAIL KICKBACKS
According to Channel 2's Richard Belcher and Channel 5's Dale Russell both federal and state grand juries are investigating Pat Jarvis and possible kickbacks from jail vendors while Jarvis was Sheriff. Jarvis allegedly set up a corporation, Shelburne Associates, that took "consulting fees" from jail vendors.
Flake [Judge Gail C. Flake] was the original incorporator on 12/21/91 for Shelburne Associates, Inc., whose records have been subpoenaed. She filed papers with the Secretary of State on 2/28/91 showing she was CEO. On 2/17/92 she signed it over to Jarvis according to Richard Belcher. She told the Atlanta Journal Constitution that her personal and professional relationships with Jarvis were separate. But then she was exposed as having been the Chief Executive Officer of Shelburne, the very corporation, that is under investigation in the kickback scheme. But F1ake told the Atlanta Journal-Constitution "Flake said she did nothing more for Shelburne than incorporate it for Jarvis, 'just like I incorporated other companies for other clients.'" On May 1, 1996 Flake told WSB Reporter Richard Belcher that she got out of Shelburne before she became a Superior Court Judge. However, she was the CEO or Shelburne while a sitting State Court Judge in 1992. She has never said whether she had a stock or other interest in the company. (Exhibit B, 5/30/96 Journal-Constitution; Exhibit C, transcript of 5/1/96 Belcher story; Exhibit D, Shelburne annual report showing Flake as CEO.)
3. SHARAR CONTROL INC.
WSB'S Richard Belcher reported on May, 1996 concerning SHARAR Control Inc. That company put in the HVAC system at the Jail. Jarvis' son worked for that company and may have owned stock. He reported that SHARAR got the low bid with help from Jarvis' connections. Then SHARAR put a rider in the contract allowing them to make a quarter million dollar adjustment in the contract, which was approved by Jarvis and Project Director Tom Black. (Tom Black has since resigned his county position, locked in his pension, returned as a consultant for the county in charge of the multi million dollar renovation for the Calloway Building.)
4. RAY SUDDETH CONNECTION
Ray Suddeth is Jarvis' longtime financier. Suddeth then owned Ebony Bonding and now owns Atlanta DeKalb Bonding. Under Georgia law the Sheriff has total control over bonding companies doing business within the county. Suddeth also has the contract to provide the Courthouse with security officers from his Colt Security Corporation. Suddeth also owns Diversified Facilities Service, a company that has the DeKalb Jail Maintenance contract, and employs Jarvis's son, Cletis, as Manager. Belcher also reported on this in his May report.
5. FLAKE & JARVIS RESIDENCY
Jarvis and Flake, while elected DeKalb County officials may have been Newton County residents. Flake describes their Newton home there as a horse farm: "Flake said she and Jarvis own properly together in Newton County, where they keep horses." (5/30/96 AJC DeKalb Extra, p. 1.) However, this horse farm has only a few horses and a 1,000 square foot barn valued at $8,550.00. While it has a brand new house built in 1993 with almost 3,000 square feet valued at $126,680, adjoining 31 acres valued at $65,265. Total assessed value is $200,495.00. On March 1, 1993, warranty deed filed on February 10, 1994, Jarvis and Flake became joint owners of the entire property. (Exhibit E, 8 pages of property records from Newton County.)
On January 17, 1996 Pat Jarvis file and received a homestead exemption on behalf of himself and Gail Flake. On April 13, 1996 Pat Jarvis gave Gail Flake a quit claim deed to the Newton County farm, making her the sole owner. This may have been an attempt to keep the house from being seized or forfeited in the federal prosecution? Under a RICO indictment the house may be subject to forfeiture and she may have committed acts in furtherance of a RICO conspiracy by taking part in the kickback corporation and by attempting to shield and hide assets subject to forfeiture.
6. FLAKE REVERSAL RATE
Flake has one of the worst reversal rates of any Superior Court Judge in tho State. Overall: 34 cases, 23 affirmed, 11 reversed, 32.4% reversal rate Superior: 2l cases, 15 affirmed, 6 reversed, 28.5% reversal rate State: 13 cases, 8 affirmed, 5 reversed, 38.5% reversal rate civil: 17 cases, l0 affirmed, 7 reversed, 41.2% reversal rate Criminal: 17 cases, 13 affirmed, 4 reversed, 23.5% reversal rate Superior Court civil reversal rate is 62.5%.
7. CONSPIRACY TRAIL
At the time of Jarvis' abrupt resignation as Sheriff, his trusted lieutenants also left abruptly. John Clower, Jarvis' bookkeeper and Chief deputy, was given a prestigious position on Miller's Criminal Justice Coordinating Council, Major Eric Dlerks, Jarvis' close confidant and former Field/Court Division Commander, was given a position with the Georgia Police Officer's Standards and Training council (POST). (Jarvis himself was appointed Executive Director by Gov. Zell Miller but took paid administrative leave after pressure was put on by other law enforcement organizations including Police Benevolent Association President McLendon.) Former Jail Commander Wayne Melton was given a key position with POST.