LUFKIN -- Walter Diggles along with his wife Rosie and daughter Anita were found guilty Thursday on all charges stemming from a conspiracy to divert federal funds intended for hurricane victims to their own use or groups with which they were affiliated.
Diggles, 64, the former executive director of the Jasper-based Deep East Texas Council of Governments (DETCOG), helped oversee the disbursement of a number of federal grants intended to help a 12-county region served by DETCOG, which includes Tyler County.
The federal jury found all three Diggles guilty of conspiracy to commit wire fraud. Walter Diggles was found guilty on a total of 11 counts of wire fraud, two counts of stealing federal funds and three counts of money laundering. His wife, Rosie, was found guilty of nine counts of wire fraud and one count of money laundering. His daughter, Anita was found guilty of one count of wire fraud
Sentencing by Judge Ron Clark will be held in four to six months. The three could be facing up to 30 years in federal prison and up to $1 million in fines.
Closing arguments in the eight-day long trial were held Thursday in the federal courthouse in Lufkin in a case that began in March 2014 when FBI and other federal officers executed search warrants at the DETCOG headquarters, the Diggles residence and the New Lighthouse Church of God in Christ in Jasper where Diggles served as the pastor.
A federal indictment charging the three family members was handed down in Beaumont in December 2015
According to evidence presented during the trial, Diggles defrauded federal authorities by inflating the amount the Deep East Texas Foundation needed for social service programs. Diggles was listed as the "registered agent" for that foundation.
He received about $4.4 million from 2007 to 2012 through federal Social Services Block Grant funds. Of that, $1.3 million was spent on personal expenses, such as transportation, funeral expenses and church rent.
Prosecutors said members of the New Lighthouse Church operated an after-school program, and that Rosie and Anita Diggles prepared documents and reimbursement packets to request funds in support of the learning center.