City of Stonecrest faces fresh mismanagement claims

“Everything needed to create a base and solid foundation to normalize operations in Stonecrest was put in place by Mr. Dillard,” his lawsuit states. “However, the ability to function on all levels became strained as Gia Scruggs continued to ignore, rework, or add to necessities.”

Scruggs, Cobble and the city’s communications director did not respond to requests for comment.

Dillard alleged, among other things, that Scruggs and Cobble had unnecessarily caused the city to spend tens of thousands of dollars on security, vehicles, furniture and shoddy contractors while ignoring critical budget requests. He claimed in part that Scruggs had inexplicably delayed his department’s projects and hiring, thwarted payments and purchases, and overruled a decision to replace an aquatic center contractor that was overcharging for services and which owed the city $80,000.

The city’s justification for ending Dillard’s employment was “the result of indecision and corrupt decision making by Gia Scruggs,” he alleged. He said he had been warned by an assistant human resources director at the city to watch his back “for asking too many questions.”

Since its incorporation as a city in 2016, Stonecrest has been plagued by allegations of mismanagement.

Keedra Jackson, a former senior planner for Stonecrest, filed a federal lawsuit against the city in August, claiming in part that she’d been unlawfully fired after questioning whether city officials had been improperly influenced by a real estate developer. Jackson’s allegations, which the city denied, are still being litigated.

The city’s founding mayor, Jason Lary, was sentenced in July 2022 to almost five years in prison for pocketing COVID-19 relief money meant for the businesses, churches and people of the city he helped create.

Stonecrest’s former senior economic development manager, Clarence Boone, was also prosecuted by the federal government in relation to the pandemic relief spending scandal, as was his wife, Lania Boone. Clarence Boone was sentenced in July to 12 months in prison, after Lania Boone received a six-month prison sentence in September 2022.

In February, Stonecrest sued the engineering and staffing firm that helped launch the fledgling city, claiming it repeatedly hired unqualified, incompetent and unproductive people. That firm, Jacobs, hired Scruggs in February 2021 to provide financial services for the city, according to the city’s lawsuit, which remains pending.

In his complaint, Dillard alleged that he ran into problems soon after the sudden departure of former city manager Janice Allen Jackson in September 2022. He suggested that Cobble then promoted Scruggs, who was the finance director, as the acting city manager because the two were friends.

City records show that Cobble later nominated Scruggs to become city manager, which was narrowly supported by city council members in a May meeting.

Dillard alleged that he repeatedly raised concerns with Scruggs and Cobble about the various ways in which his efforts to improve the parks and recreation department were being hindered. He said he was met with false promises and that Scruggs continued to assign him work from other departments, including vehicle and security management.

“There was a constant struggle to operate due to inefficiencies and delinquencies from city hall,” Dillard’s lawsuit states. “The problems grew and new ones were constantly added by Ms. Scruggs. Mr. Dillard worked in vain and with determination to organize the staff and facilities.”

Dillard said that several weeks after he requested a meeting with Cobble and Scruggs to further address his concerns, he was blindsided in May with a suspension. He said he was falsely accused, among other things, of authorizing city business with his father-in-law, which he denies.

The suspension and Dillard’s subsequent firing came without any warning, reprimand or request to correct his methods, he said. He claimed that Stonecrest officials then publicly defamed him in communications with potential new employers, destroying his ability to secure another local government job.

Scruggs also lied to city staff and told them Dillard had stolen and destroyed city documents, he alleged.

Dillard wants unspecified compensation including lost wages and employment benefits. He also wants his employment record with Stonecrest to be corrected.