Former Navarre Chamber Executive, Judy Morehead, resigned her position Wednesday for family reasons. It was discovered today that she had been indicted in March, an arrest warrant was issued in May and she turned herself in and posted bond on May 24 in Henry County, Alabama.
According to a press release from the Alabama Securities Commission released Wednesday, former Chamber Executive, Judy Morehead turned herself in on May 24, 2017 to the Henry County Jail in Alabama and posted a $40,000 bond. There was a warrant out for her arrest for alleged Alabama Securities Act Violations according to Patrick B. Jones III, District Attorney for the 20th Judicial Circuit, Henry County, AL. The arrest warrant, according to the release, was based on an indictment returned by the March 2017, Henry County Grand Jury.
According to the released, charges against Morehead include one (1) count of Conspiracy to Commit Securities Fraud and one (1) count of Sale of Securities by an Unregistered Agent. Additionally, Morehead is charged with one (1) count of Engaging in an Act, Practice, or Course of Business Which Operates or Would Operate as a Fraud or Deceit Upon Any Person; and two (2) counts of Fraud in Connection with the Sale of Securities, more specifically described as omitting state material facts and making untrue statements of material facts to investors. The conspiracy and registration charges are Class C Felonies, punishable by a possible maximum of 10 years imprisonment and a $15,000 fine per charge, upon conviction. All other charges against Morehead are Class B felonies, punishable by a possible prison sentence of from 2 to 20 years and a $30,000 fine per charge, upon conviction.
Judy Morehead left Navarre on Thursday to take care of family matters upon her resignation on Wednesday. “I gave the board a month’s notice. I told them about my family’s health issues, and I also told them I had pending legal issues with my previous employment,” said Morehead. When asked by the executive committee of the chamber when she really needed to leave, she replied, “today.”
In a statement released to Navarre Press Morehead states, “The recent news relates to a company that I have owned for 14 years and an individual that we have cared for over the last ten years. We have had legal-council concerning that relationship for the last two years. Until May, we were never contacted by the authorities regarding these claims nor charges and have yet to see any supporting documentation. When we are asked to present our information we are confident that the court will find the charges unfounded,” wrote Morehead in her typed statement.
“This was one client making an accusation out of approximately 800 in 20 years of practicing as a stock broker and financial advisor, I have never had one bad audit or claim against me ever – period. I have had numerous phone calls from former clients voicing their support for me.”
Navarre Chamber Chairman Mike Sandler told Navarre Press this evening that the executive chamber committee didn’t know she had been arrested. “After she resigned she told us that there were legal issues pending with her previous business but she did not share the details. “I do know that the reason she left was for her family. We did not know the extent of the legal issues. However, you’re innocent until proven guilty in a court of law,” said Sandler.
According to published reports, Morehead’s son and husband were also arrested on charges related to the indictment in May.
Benjamin Morehead, 36, turned himself in May 23 and was released on $20,000 bond. He faces one count of conspiracy to commit securities fraud, one count of sale of securities by an unregistered agent and one count of sale of unregistered securities. He has also been charged with one count of fraud in connection with the sale of securities, or omitting to state material facts and making untrue statements of material facts to investors.
Stanley Morehead, 58, turned himself in May 24, and was released on $40,000 bond. He was indicted on conspiracy to commit securities fraud, one count of engaging in an act, practice, or course of business which operated as a securities fraud and fraud in connection with the sale of securities.