Virginia Mayor Arrested on Public Funds and Credit Card Charges as Town Says It Tightened Financial Controls

Haysi Mayor Larry Yates
Image Credit: outhwest Virginia Regional Jail.

A Virginia mayor who has held office for more than a decade has been arrested on multiple financial charges involving public funds, public assets and credit cards.

Haysi Mayor Larry Yates, 72, was arrested September 17, according to WCYB, which cited Southwest Virginia Regional Jail Authority records and Virginia court records.

The arrest prompted a statement from the Haysi Town Council saying officials had spent the previous several months updating business procedures, increasing financial oversight and adding restrictions and controls. The council said town operations would continue while law enforcement and the courts handle the case.

Public records have not yet revealed the purchases or transactions underlying the charges or the total amount authorities believe was involved. The allegations have not resulted in a conviction, and Yates is presumed innocent unless proven guilty.

Jail Records List Public Funds and Credit Card Charges

The charges listed in public records include embezzlement by a public officer and an offense involving the use of public assets worth more than $1,000 during a 12 month period.

Yates is also listed as facing credit card theft involving a card or card number and credit card fraud involving at least $1,000 during a six month period. Additional entries concern receiving goods obtained through credit card fraud and offenses involving amounts below $1,000.

Virginia law makes it a crime for a public officer, agent or employee entrusted with government funds to knowingly misuse or misappropriate them. Section 18.2-112 of the Code of Virginia addresses embezzlement of public or other funds by government officials and employees.

Section 18.2-112.1 separately addresses unauthorized personal use of government-owned or government-funded assets. Virginia’s credit card statutes also distinguish theft of a card or card number from fraudulent use of that information.

Town Council Says It Had Already Increased Financial Oversight

The Haysi Town Council said the arrest followed months in which it had been working to strengthen the town’s financial and administrative safeguards.

According to the council, officials updated business processes, increased oversight and established additional restrictions and controls while addressing concerns through the procedures available to them.

The statement did not identify what initially prompted those changes or connect any particular safeguard to a transaction listed in the criminal case.

The council also said Yates’s status as an elected official required it to follow legal and procedural rules governing how the town could respond. It pledged to continue protecting public funds and strengthening accountability as the case proceeds.

Yates Has Served as Mayor Since 2012

WCYB reported that Yates was first elected mayor in 2012 and won another term in the November 2024 election.

The Town of Haysi’s official website continued to identify Larry D. Yates as mayor around the time of the arrest.

Online court records also showed that Yates had appeared for a hearing in Dickenson County on September 14, three days before his reported arrest. WCYB said it contacted Virginia State Police and the Haysi Police Department for additional information but had not received further details when its report was updated.

Residents Can Preserve Records Connected to Suspected Public Spending Misuse

Unusual government spending is not by itself proof of criminal activity. People who believe they have evidence of misuse can preserve specific records such as invoices, purchasing card statements, contracts, payment records, meeting documents and correspondence showing how public money or property was handled.

Information indicating possible criminal conduct can be provided to the appropriate local law enforcement agency or prosecutor. The Dickenson County Commonwealth’s Attorney’s Office works with citizens and law enforcement agencies in the prosecution of criminal cases within the county.

Virginia residents should also verify which agency has jurisdiction before submitting a complaint. The Virginia Office of the State Inspector General says its fraud, waste and abuse hotline covers executive branch agencies but does not have jurisdiction over local government entities such as towns and counties.

For suspected misconduct involving municipal resources, documented concerns should instead be directed to the appropriate local or law enforcement authority rather than an agency that cannot investigate the matter.