Note: This article has been updated to include court information.
HOPEWELL – City treasurer Shannon Foskey is once again in legal trouble after she reportedly removed the city’s access to its bank accounts and refused to reinstate it just days before payroll and other city expenditures were set to go out.
Foskey – already under indictment on charges of computer fraud and records forgery – was arrested late Monday afternoon at her office in the Municipal Building. She was charged with one count of embezzlement by a public officer.
She was taken to Riverside Regional Jail in Prince George County for booking and remains in custody there, according to Hopewell General District Court records. A hearing to appoint an attorney was scheduled for 9 a.m. Tuesday.
The arrest comes less than a week after City Council passed an emergency ordinance reassigning all accounting and bank reconciliation duties from Foskey's office to Hopewell’s finance department in advance of a charter-change request to make the transfer permanent. It is the latest in a saga of tension between Foskey – one of five constitutional officers directly elected to their positions – and city administration over the recently completed reboot of Hopewell’s fiscal management system by the Robert Bobb Group.
Foskey now is accused of cutting off access to Hopewell’s bank accounts for the two employees moving from her office to the finance department and refusing an official request from the city to reinstate the access. Saturday morning, Hopewell Police delivered the request to Foskey’s residence, but she reportedly was out of town. Therefore, authorities posted copies on the house’s doors, and to a vehicle parked outside her house.
That request – a copy of which was obtained by The Progress-Index – had given Foskey until 10 a.m. on Saturday to reinstate access or face consequences.
“Your actions have resulted in the city’s inability to properly execute its payroll obligations and vendor payments for both the city and the school system, in addition to creating negative impacts on other important fiscal responsibilities of the city,” acting city attorney Beverly Burton wrote to Foskey. “In my opinion, you are unlawfully and deliberately interfering with the city’s ability to conduct its affairs on behalf of the citizens of Hopewell in a fiscally responsible manner.”
When that deadline was not met, the city eventually obtained warrants.
The Progress-Index has learned that the payroll and other obligations were resolved before Foskey was arrested.
Foskey was not immediately available for comment on the latest charge. Hopewell's city administration declined to comment on the situation.
What exactly is ‘embezzlement by a public officer?’
Under Section 18.2-112 of the Code of Virginia, a political officer can be charged with embezzlement if they “knowingly misuse or misappropriate” public funds within their custody or “knowingly dispose [of the funds] otherwise than in accordance with law. It would also apply to any deputy associates within their offices.
The charge is a Class 4 felony in Virginia, punishable by a prison sentence of 2-10 years and a fine of up to $100,000.
An ongoing issue between treasurer and Hopewell
Monday’s action is the latest in an ongoing series of legal missteps involving Foskey.
She was indicted in early October on felony charges of computer fraud and records forgery after she allegedly removed herself from a list of delinquent taxpayers not permitted to do business with the Virginia Department of Motor Vehicles until those taxes were paid. She also was a frequent target of criticism from the Robert Bobb Group over mismanaging fiscal records, including the city’s checkbook.
Foskey has denied those allegations. Her next court appearance is set for Jan. 25.
Foskey: I inherited the problems
The day after council’s vote, Foskey issued a statement to The Progress-Index denying that she felt it was related to her legal issues. She repeated earlier statements that she had inherited problems from previous treasurers and was diligently trying to rectify them.
Hopewell’s finances have been in disarray for some time. For five years, the city did not submit state-required audits of its financial records, and for three years before that, it had not received a “clean” opinion on them.
RBG was hired to reboot the system – work that took a year to complete and was done by the end of October. Foskey said she and her office were doing due diligence to bring the records up to speed, and she did not appreciate RBG making her a scapegoat.
Foskey’s statement smacked of criticism for both council’s involvement and for hiring RBG to redo the system.
“Now, the City Council, along with [Mayor] Johnny Partin individually going on his own to the state, wants to mandate a charter change to ensure that the accounting portion remains on track,” Foskey said in her statement, which she added was aided by the Treasurers Association of Virginia. “We must recognize that these issues stem from prior administrations, both city managers and council members who were not held accountable for finances in the past, which has led us to this point.
“In hindsight, we should have sought assistance much sooner, long before we invested $2.5 million in RBG’s services to help with Standard Operating Procedures (SOPs).”
When contacted by The Progress-Index, the president of the TAV said the association was withholding further comment.
“We will be seeking additional information over the next several days to enable us to assess the actions taken and proposed to be taken,” Falls Church city treasurer Jody Acosta said in an email.
Part of legislative wish list
The council vote Nov. 19 stripped all accounting and banking functions from the treasurer’s office and placed them under the direction of Stacey Jordan, Hopewell’s chief financial officer. By doing so, council invoked its charter-mandated “emergency powers” to immediately enact any passed ordinance before its usual 30-day grace period.
Part of Hopewell’s legislative wish list for the 2025 Assembly was amending the city’s charter to permanently reassign those duties. That leaves the treasurer’s office with only the power to send out bills and collect payments, plus any other duties council deems appropriate.
In Virginia, the treasurer is one of five “constitutional officers” directly elected by the locality’s voters. The others are sheriff, commonwealth’s attorney, Circuit Court clerk and commissioner of the revenue.
Foskey, a former deputy to her immediate predecessor, was elected treasurer in 2022.
Bill Atkinson (he/him/his) is an award-winning journalist who covers breaking news, government and politics. Reach him at batkinson@progress-index.com or on X (formerly known as Twitter) at @BAtkinson_PI.
