The Hempstead County Quorum Court on Thursday approved an ordinance amending the county budget to address a shortfall in the Sheriff’s Office inmate fund after authorities discovered more than $13,000 in counterfeit money had been released to a third party following an inmate’s arrest.

The complete video of the meeting can be seen below the article.

The ordinance amended Appropriation Ordinance 2025-18 and transferred $2,940.20 from the jail fund to the Hempstead County Sheriff’s Office Fund to cover the deficit created by the incident.

County Clerk Karen Smith read the ordinance before the court, explaining that the appropriation adjustment was necessary “for the operation of the Hempstead County Sheriff’s Office Fund 6017 budget and its business.”

Sheriff James Singleton told justices of the peace the issue began after a woman arrested on felony charges was booked into the county jail carrying more than $13,000 concealed in her undergarments.

“During the search over there they found $13,000 some odd dollars,” Singleton said. “Normal procedure is take that money, put it in an envelope, and then it’ll be deposited, and when the inmate gets out, it’s all put on a debit credit card.”

Singleton said the inmate later signed paperwork authorizing the release of the money to another individual. Authorities subsequently learned nearly all of the cash in her posession was counterfeit.

“Long story short, they released the money, and all of it was counterfeit, except $1,” Singleton said. “That created a shortfall in our inmate fund.”

Smith explained that approximately $9,700 had been released before authorities attempted to stop the transaction.

“When you called to stop it, you were able to recover $6,759.80?" one JP asked.

Singleton said county officials consulted with state authorities and the Arkansas Association of Counties after discovering the loss.

“I talked to Mark Whitmore, I talked to all the people up in AAC, and they just said, ‘Well, write the explanation,’” Singleton said. “They didn’t tell me how to recover the money.”

Singleton said felony charges have been filed and the United States Secret Service has taken over the investigation. “She’s gone back to Texas, and I can’t promise you we’ll ever get money back,” Singleton said. “We got scammed.”

Justice of the Peace Steve Atchley made the motion to approve the ordinance, which received a second from Jessie Henry before passing unanimously. During discussion following the vote, Justice of the Peace Vic Ford questioned whether the counterfeit bills had been examined by a bank.

“You never count on anything like this happening,” Ford said. “I’m surprised the bank didn’t catch it.”

Singleton said the money never made it to a bank before being released but in the future cases like this will have a major obstacle before an alleged criminal can succeed in laundering fake cash through the Sheriff's Office. Now there's a counterfeit detection machine on the premises. "When we put it in there, it’ll tell us right then it’s counterfeit.”

Singleton said the suspect faces numerous charges in Texas in addition to the Hempstead County case. “She’s been charged all over the country,” Singleton said. “They’re running scams. They’ll go different places.”

He added that another individual involved in retrieving the money also faces charges.

The meeting adjourned shortly afterward.