CHARLOTTE, N.C. -- United States Attorney Gretchen C.F. Shappert, Kevin Kendrick, Special Agent in Charge of the FBI in North Carolina, and Robin Pendergraft, Director of the North Carolina State Bureau of Investigation, announced that KENNETH L. FOX, formerly the Mayor of the Town of East Spencer, North Carolina, and WILLIAM RONALD HASH, currently an Alderman of the Town of East Spencer, were arrested today following a thirty-four (34) count indictment, which was unsealed today, charging conspiracy, mail fraud, and extortion.

The indictment alleges that from early 2000 through late 2001, FOX, HASH, and former Alderman Chris R. Sharpe solicited and accepted substantial undisclosed monetary payments from Rick G. Slade, a Winston-Salem businessman, at the same time that those town officials were awarding Slade’s companies hundreds of thousands of dollars in town contracts and/or authorizing payments from the town on those contracts. Slade and Sharpe have already pled guilty in this matter pursuant to plea agreements and are cooperating with the Government. “Unfortunately, the corruption of East Spencer’s town hall reached all the way to the corner office,” U.S. Attorney Shappert said. “With today’s arrests and indictment, we hope to begin the process of restoring the people’s confidence in their town leaders at all levels.”

If convicted of all charges, FOX faces a maximum sentence of 350 years in prison, and HASH faces a maximum sentence of sixty (60) years in prison. However, it is important to note that any sentence received upon conviction will be influenced by the Federal Sentencing Guidelines, which the Court consults in order to determine each defendant’s actual sentence based upon a formula that takes into account the severity and characteristics of the offense and each defendant’s criminal history, if any. Of course, defendants in criminal cases are entitled to a presumption of innocence, and the Government has the burden of proving all charges beyond a reasonable doubt.

The Government is represented in this matter by Assistant U.S. Attorney Matthew T. Martens of the U.S. Attorney’s Criminal Division in Charlotte.

Kenneth L. Fox
DOB: 5/19/59
Address: 431 Robinson Road
East Spencer, NC

William R. Hash
DOB: 3/22/48
Address: 611 Sides Lane
East Spencer, NC