KNOXVILLE – The Tennessee Bureau of Investigation has obtained indictments for four people, including two Newport Police Department captains, in connection to a misconduct case involving the sale of stolen goods and prescription pills.
At the request of 4th District Attorney General James Dunn, TBI Special Agents began investigating James Finley Holt on April 16th. During the course of the investigation, Agents developed information that Holt, a Captain for the Newport Police Department, bought and sold stolen goods, and on several occasions, at the store owned by his wife, Newport Alderwoman Kathy Darlene Holt. Additionally, investigators learned James Holt bought and sold prescription drugs, including Hydrocodone and Xanax, and that some of the transactions occurred in a school zone, while Holt was on duty. The investigation also revealed another Newport Police Captain, Roger Lynn Schults, participated in the illegal activity, though in a lesser extent, while on duty. Investigators further determined Kathy Holt was complicit with the operation and that the Holts’ son, Kenneth Trece Myers, was also involved.
Today, a special Cocke County Grand Jury returned indictments for all four individuals, charging 59-year-old James Holt with 10 counts of Official Misconduct, 8 counts of Money Laundering, one count of Conspiracy to Commit Money Laundering, and 5 counts of Sale & Delivery of a Controlled Substance. The Grand Jury indicted Shults, 54, on four counts of Official Misconduct and one count of Conspiracy to Commit Money Laundering. The indictments for 50-year-old Kathy Holt charged her with one count of Conspiracy to Commit Money Laundering and three counts of Money Laundering. Finally, the Grand Jury indicted Myers, 31, on one count of Conspiracy to Commit Money Laundering. James Holt will soon be booked into the Washington County Jail. Schults, Kathy Holt, and Myers will be booked into the Cocke County Jail. At the time of this release, pictures of the four subjects were not available.
Today, as part of the ongoing investigation, TBI Special Agents executed search warrants at the Newport Police Department and Kathy Holt’s store, the Pit Stop Mobil Mart. Investigators from the U.S. Attorney’s Office, the Tennessee Highway Patrol, the Tennessee Department of Revenue and the Tennessee Office of the Comptroller are also involved in the investigation, which continues at this time.