Newport police officers charged in drug and money laundering sch

Newport police officers charged in drug and money laundering scheme

Posted:
James Holt (source: Newport Police Dept.) James Holt (source: Newport Police Dept.)
Kathy Holt (source: City of Newport) Kathy Holt (source: City of Newport)
Lynn Shults (source: Newport Police Department) Lynn Shults (source: Newport Police Department)
Two locations were raided as part of the investigation: the Newport Police Department and a Mobil gas station owned by Kathy Holt. Officials say the gas station was part of the money laundering operation. Two locations were raided as part of the investigation: the Newport Police Department and a Mobil gas station owned by Kathy Holt. Officials say the gas station was part of the money laundering operation.
By CAMERON TAYLOR
6 News Reporter


NEWPORT (WATE) - Four people including two Newport police officers and a Newport city alderwoman were charged in a misconduct case Wednesday after a lengthy probe by the Tennessee Bureau of Investigation and other agencies.

Det. Capt. James Holt, 59, his wife Alderwoman Kathy Holt, 50, her son Kenneth Myers, 31, and Det. Capt. Roger Lynn Shults, 50, were all indicted by a grand jury in the case.

TBI officials say their investigation began on April 16 at the request of District Attorney General Jimmy Dunn. Agents say they learned that James Holt bought and sold stolen goods, and on several occasions, at the store his wife Kathy owned.

They also learned James Holt bought and sold prescription drugs, including hydrocodone and Xanax, and that some of the transactions happened in a school zone, while Holt was on duty in his Newport Police Department issued vehicle.

"It is embarrassing because the very people that are trusted with upholding the laws are the ones who are now charged with violating the law," said Dunn.

The investigation also revealed another Newport police captain, Roger Lynn Shults, allegedly participated in the illegal activity, although in a lesser extent, while on duty and that Kathy Holt and Kenneth Myers were also involved.

"I've seen a lot of it come and a lot of it go since I've been alive, but it upsets me because people like that, they mess it up for the good guys," said Patsy Atkins of Newport. 

James Holt is charged with 10 counts of official misconduct, eight counts of money laundering, one count of conspiracy to commit money laundering and five counts of sale and delivery of a controlled substance.

Shults is charged with four counts of official misconduct and one count of conspiracy to commit money laundering.

Kathy Holt is charged with one count of conspiracy to commit money laundering and three counts of money laundering.

Myers is charged with one count of conspiracy to commit money laundering.

"It's just very disappointing for me being here all of my life and to think we have situations like this going on," said Newport Mayor Connie Ball.

Shults, Kathy Holt and Myers have been booked into the Cocke County Jail. James Holt is in the Washington County Jail. Holt is expected to make his first appearance Thursday in U.S. District Court in Greeneville before a U.S. Magistrate Judge Dennis Inman.

As part of the investigation, TBI Special Agents executed search warrants at the Newport Police Department and Kathy Holt's store, the Pit Stop Mobil Mart.

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.

Mayor Ball told 6 News that Kathy Holt will keep her seat on the city council as the investigation continues. Newport Police Chief Maurice Shults was also contacted, but could not be reached for comment.







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