Investigation of Irregularities Within the Coastal Impact Assistance Program in Mississippi

OIG investigated grant funds awarded to the State of Mississippi under the Coastal Impact Assistance Program (CIAP) after an audit of the Program identified significant irregularities in how Mississippi officials spent the funds.

 

Our investigation found that the now former executive director of the Mississippi Department of Marine Resources (DMR), a CIAP grantee, had the ability to authorize and direct the expenditure of Federal funds under the control of DMR. He used this authority to later coordinate the sale of the property in Ocean Springs, MS, to an organization that purchased it with those Federal funds. William Walker’s son, Scott Walker, was listed as the loan’s primary borrower.

 

In addition, we determined William Walker misused $444,131, which he diverted from DMR to the Marine Resources Foundation, a private organization that he founded and controlled. 

 

A Federal Grand Jury indicted both William Walker and Scott Walker on charges of Federal program fraud, mail fraud, and conspiracy to commit fraud. Both men pleaded guilty and received prison sentences and were ordered to pay joint restitution. William and Scott Walker were also debarred from working with the Federal Government for a period of 3 years.