Wednesday, July 23, 2014

Major drug, stolen goods and money laundering bust.
A total of four individuals were indicted Wednesday by a Cocke County Grand Jury in connection with an ongoing drug, money laundering and stolen property investigation. One of those indicted is a Newport alderwoman and two are Captains in the Detective Division of the Newport Police Department. Director of the Tennessee Bureau of Investigation Mark Gwyn and Fourth Judicial District Attorney General Jimmy Dunn called a news conference to announce the indictments today in the misconduct case involving the sale of stolen goods and prescription pills.. At the request of Prosecutor Dunn, TBI Special Agents began investigating James Finley Holt,59, on April 16th. During the course of the investigation, Agents developed information that Holt, a Captain with the police department bought and sold stolen goods, and on several occasions, at the store owned by his wife, Newport Alderwoman Kathy Darlene Holt. Additionally, investigators learned James Holt bought and sold prescription drugs, including Hydrocodone and Xanax, and that some of the transactions occurred in a school zone, while Holt was on duty. The investigation also revealed another Newport Police Captain, Lynn Shults, participated in the illegal activity, though to a lesser extent, while on duty. Investigators further determined Kathy Holt was complicit with the operation and that her son, Kenneth Myers, was also involved. On Wednesday prosecutor Dunn announced that a special session of the Cocke County Grand Jury returned indictments for all four individuals, charging Detective Holt with 10 counts of Official Misconduct, 8 counts of Money Laundering, one count of Conspiracy to Commit Money Laundering, and 5 counts of Sale & Delivery of a Controlled Substance. Shults, 54, is charged with four counts of Official Misconduct and one count of Conspiracy to Commit Money Laundering. Alderwoman Holt, 50 is charged with one count of Conspiracy to Commit Money Laundering and three counts of Money Laundering. Kenny Myers, 31, is charged with one count of Conspiracy to Commit Money Laundering. Detective Holt was booked into the Washington County Jail, while Schults, Kathy Holt, and Myers were placed in the Cocke County Jail. As part of the ongoing investigation, TBI Special Agents executed search warrants at the Newport Police Department , the detective's official vehicles and Kathy Holt’s store, the Pit Stop Mobil Mart, on the Cosby Road. Investigators from the U.S. Attorney’s Office, the Tennessee Highway Patrol, the Tennessee Department of Revenue and the Tennessee Office of the Comptroller are also involved in the investigation, which continues at this time. Federal authorities Wednesday also announced that Detective Captain Holt is named on a federal criminal complaint which charges him with the illegal distribution of drugs and the possession of a firearm in furtherance of drug trafficking. The affidavit alleges that Holt was selling drugs (hydrocodone and Xanax) or exchanging drugs for what had been represented to him as stolen property. On occasions he was distributing drugs from his official Newport Police Department vehicle. On one occasion, he told an individual working on behalf of law enforcement that he was going to pick up the drugs. Agents of the TBI followed him directly to the Newport Police Department and straight back to the location where Holt delivered the drugs. Director Gwyn said agents determined that the two officers "bought and sold stolen goods while on duty and that Holt bought and sold hydrocodone and Xanax several times while on duty." Gwyn went on to say Alderwoman Holt and her son were found to be complicit with the officer's illegal activities. He said the investigation is active and on going. "We are saddened to announce these charges,it's a blemish on the entire law enforcement community and for those of us who do our best to uphold the public trust and to maintain integrity." Prosecutor Dunn said the lengthy investigation began in April."The conduct giving rise to these charges is an embarrassment to the City of Newport, Cocke County and law enforcement in general.. It is embarrassing because the very people entrusted with upholding the laws are the one who are now charged with violating the law. Dunn said his office remains committed to the unbiased enforcement of the criminal laws "on behalf of all the citizens of Cocke County and the Fourth Judicial District even, and especially when, the investigations are difficult, when they are complex and when they involve those who are sworn to uphold the law."


Return to Today's News Stories - Front Page

Thursday, April 29, 2021

  • US 411 Project News
  • Mill Creek Wildfire Update
  • More Bad News For Smokies' Fans

    Wednesday, April 28, 2021

  • Mill Creek Wildfire doubles in size
  • Goodbye Smokies?
  • Keep Cocke County Beautiful
  • Cocke Co. High School Remote Learning today!

    Tuesday, April 27, 2021

  • The fireflies are coming!
  • Burnout Operations on MillCreek wildfire today
  • Gas prices drop
  • Tennessee keeps all US House seats

    Monday, April 26, 2021

  • Boat accident victim ID'd
  • Traffic stop yields drug arrest
  • Cocke County Wildfires

    Friday, April 23, 2021

  • Leaving WNPC
  • Mathis announces candidacy
  • Newport drug roundup
  • Cruise Against Cancer
  • Jobless numbers