State Auditor says mayor used elected position for personal gain in real estate deal

OCEAN ISLE BEACH, N.C. (WECT) – The State Auditor is asking the Brunswick County District Attorney to look into possible criminal charges surrounding a real estate deal in Ocean Isle Beach.

The Auditor says Mayor Debbie Smith’s purchase of the town’s old police department violated state law, allowing her to use her elected position to derive a direct benefit from the Town. The Auditor also says Smith used inside information not readily available to the public for personal gain.

The Mayor and Town Attorney adamantly disagree with the State Auditor’s findings.

On Thursday, State Auditor Beth Wood released a nearly 200-page Investigative Report into the questionable real estate transaction. In 2018, the town completed plans to build a new Town Hall and Police Department. In February of that year, a resident expressed an interest in purchasing the old police department on West 3rd Street. Town Council was interested in selling, and paid to have the land appraised.

The appraisal for the old Police Department came back at $460,000. The State Auditor’s Office and Ocean Isle Beach town officials dispute whether the Town ever got back to the resident who expressed an interest in purchasing the property, but he did not end up buying it.

In June 2018, Town Council went into closed session where the Town Administrator informed Council that the interested resident did not respond after she attempted to contact him about the offer amount. The meeting minutes state the council then decided, “not to put this property on the open market for sale until later this Fall.” (Read more)