A new lawsuit adds more allegations of financial misdeeds against Kade Holliday, the Republican who resigned as clerk of Craighead County after being charged with stealing $1.6 million in public money.
The suit is by Total Healthcare LLC, doing business as Twisted Foods, and Rose Hankins. The company sold customized meals. Holliday and his management company are defendants.
The suit says when the company was formed in 2015, Holliday was given 30 percent of the business instead of salary in return for providing accounting and managerial expertise.
After Holliday’s arrest, Hankins checked her company’s records and discovered the company had been plundered by Holliday diverting company money to personal accounts. (This is what he’s alleged to have done with Craighead County accounts. He’s also been accused of taking $15,000 to $20,000 from a local business group for which was de facto treasurer. )
The suit identifies $154,000 in transfers of money from the company to Holliday accounts in May and June alone. But the suit says there’s evidence of other “widespread” embezzlement, including payments of expenses for other Holliday companies and personal expenses including online gaming accounts. That last could be a clue about where all the money went.
The investigation is continuing, but the lawsuit says it believes it has identified $500,000 in losses in some 100 transactions. It also says it believes Holliday created debt for the company with loans from various institutions, perhaps more than $200,000.
Holliday’s actions have led to the financial ruin of the business, which employed 50 people, the suit said. The loss — of profits from the business and value of goodwill — is more than $1 million, it says. The Twisted Foods Facebook page seeks contributions from supporters to continue business in Jonesboro and Nashville.
The suit seeks damages, but in the meanwhile also wants Holliday’s records preserved and for any assets he retains to be put in a trust he can’t spend.
UPDATE: More details on the spending on the Twisted Foods location in Nashville is included in a motion filed to intervene in Craighead County’s civil lawsuit to recover for Holliday. The suit said Holliday had provided a statement from a Vanguard investment account with a total of $2.3 million and had said a portion of that money was earmarked for the Nashville project.
In searching Facebook for a photo of the Twisted Foods in Nashville, I happened to stumble across this entry by someone who described working there.