July 29, 2003 - Posted at 7:17 a.m. CDT
PINE BLUFF, Ark. --Transactions in 2002 between the city of Pine Bluff and a nonprofit economic development firm headed by a city alderman are the subject of an inquiry by the Internal Revenue Service.
That's in addition to an investigation prosecutors that has been going on for months. Alderman Billy Freeman and Southeast Arkansas Community Development Corporation have been under investigation since February.
In January, the I-R-S filed a lien against the organization seeking 35-thousand dollars in employment taxes.
The state investigation centers on a bad check of about 72-thousand dollars the city received from Southeast Arkansas Community Development last year.
The city gave Southeast about 72-thousand dollars and expected to be reimbursed once the agency received its federal funds. Southeast sent the city a reimbursement check, but the check bounced, city officials said.