Hours before Prichard residents met Thursday night to discuss the future of their struggling water and sewer system, federal officials unveiled indictments against seven people for their alleged roles in a multi-million dollar fraud scheme involving the city’s water and sewer board.

Several of the people charged once worked for the board, which has been under scrutiny by state and federal prosecutors since at least 2022.

The U.S. Department of Justice made the announcement Thursday and the release stated that two individuals have already pleaded guilty. That leaves the five remaining defendants with a total of 32 counts that they were indicted for.

According to the unsealed indictment the defendants include, Nia Bradley, 50, who is the former water board manager, Randy Burden, 47, Steve Jones, 61, Larry Knight, 35, Dejuan Lamar, 47, Ayanna Payton, 47, and Stephanie Hunn, 49.

Hunn and Payton were the two that have already pleaded guilty to their involvement in the fraud scheme, which swindled about $2.4 million from the Prichard Water Board, according to the statement.

Bradley in February 2022 had been arrested on state charges of aggravated theft by deception and first degree theft of property. The arrest came about 10 days after Mobile’s then District Attorney confirmed an “all-encompassing” probe of the water board. State and federal agencies also raided water board offices after allegations surfaced that employees were using office funds to buy designer handbags, makeup and more.

Officials said the scheme lasted from 2018 to 2022 and $960,000 of the $2.4 million was allegedly laundered through a business owned by Burden and Bradley.

“The indictment alleges that the criminal scheme involved the creation of a fictitious business by Hunn and the creation of false invoices to justify unlawful payments to Hunn, Jones, Knight, and Lamar,” the release stated. “Bradley and Burden, who were employees of the Prichard Water Board, allegedly falsified payment authorizations and received kick-back payments and other benefits.

Payton and another uncharged co-conspirator served on the board of the Prichard Water Board where they are alleged to have falsified payment authorizations and received kick-back payments and other benefits for their roles.”

The indictments also revealed that several of the individuals used coded messages to conceal their communications while destroying evidence of their alleged crimes.

Bradley, Payton, Jones and Hunn allegedly committed tax fraud to avoid detection by the U.S. government.

“Through its criminal cases, the United States is seeking money judgments in the amounts of approximately $2,459,279.39, $960,851.41, and $302,134.90, as well as the forfeiture of three real properties which were purchased using fraud proceeds and involved in the money laundering scheme,” the release said.

The water board provides water and sewer services to 2,000 businesses and 8,000 homes and is funded through customer payments as well as a $55 million bond secured in 2019.

Due to the utility being in crisis, it has naturally impacted consumers and citizens within Prichard. A town hall was held Thursday evening for citizens to discuss the troubled water and sewer infrastructure that John Young, the court-appointed receiver for the Prichard Water Works and Sewer Board, said was headed towards a “public health emergency.”

As previously mentioned Payton and Hunn pleaded guilty to conspiracy to commit mail, bank, and wire fraud, conspiracy to defraud the United States, wire fraud, bank fraud and false tax filing. They both await sentencing.

Bradley is charged with conspiracy to commit mail, bank, and wire fraud, conspiracy to defraud the United States, money laundering conspiracy, wire fraud, bank fraud, and related tax charges.

Burden is charged conspiracy to commit mail fraud, bank fraud, and wire fraud, money laundering conspiracy and bank fraud.

Jones is charged with conspiracy to commit mail, bank, and wire fraud, money laundering conspiracy, bank fraud and filing false tax returns.

Knight and Lamar are charged with conspiracy to commit mail, bank, and wire fraud and Bank Fraud.