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Former Virginia Beach economic development director pleads guilty to 4 counts of embezzlement

Former Economic Development Director Warren Harris arrives at Virginia Beach Circuit Court in December 2019. He pleaded guilty this week to four counts of felony embezzlement.
Steve Earley / The Virginian-Pilot
Former Economic Development Director Warren Harris arrives at Virginia Beach Circuit Court in December 2019. He pleaded guilty this week to four counts of felony embezzlement.
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Virginia Beach’s former economic development director pleaded guilty to four counts of felony embezzlement Wednesday.

Warren Harris, 64, was accused of misusing city funds for personal use throughout his tenure. His fraudulent expenditures totaled $79,479.50, according to a release from the prosecutor’s office.

The Virginia Beach Police Department, the Office of the Commonwealth’s Attorney and the FBI jointly investigated Harris’ spending.

A Virginia Beach Circuit Court grand jury indicted the Chesapeake resident in 2019 on six counts of embezzlement, six counts of embezzlement by a public officer, one count of obtaining money by false pretenses and one count of a public officer using more than $1,000 of public assets for personal purposes within a year.

Prosecutors dropped 10 of those charges as part of the plea deal. Harris pleaded guilty to four counts of embezzlement by a public officer.

Harris headed the city’s economic development department for 11 years before abruptly resigning in 2018 amid an audit of his credit card spending.

As the head of the economic development department, Harris approved his own expenses. International travel expenses required approval from the deputy city manager starting in 2018.

The city auditor’s 2018 investigation into Harris’ spending found that he had been “fraudulently utilizing city funds to facilitate personal travel to locations all over the world, including Dubai, Panama, Spain, California, Texas, Florida, Georgia, and Illinois,” according to the news release.

Investigation revealed that Harris “passively threatened” economic development employees about the consequences of making reports to the city auditor.

After the city fired Brian Hall — formerly a business development coordinator — for embezzlement, Harris reportedly told employees during a staff meeting that “snitches get stitches.” An audio recording of the meeting was provided to the city auditor.

A stipulation of evidence compiled against Harris contends that he spent $39,500 in public funds to place advertisements in the 2018 NCAA Final Four program, the 2018 Washington Nationals Yearbook and the 2018 MLB All-Star Game. Harris received over a dozen complimentary tickets to MLB and NCAA Final Four games in return, which he used for personal purposes.

Harris also used his city-issued procurement card to fund social trips with the Norfolk chapter of the National Association of Guardsmen — a private social club composed primarily of “successful, wealthy men,” court records show.

Harris charged thousands to his procurement card to attend lavish, multi-day Guardsmen events across the country and globe between 2015 and 2018. The trips are social and not meant for conducting business, according to prosecutors.

Harris’ other city-funded expenditures include attending the 2018 Running of The Bulls in Spain.

Circuit Court judge Steven Frucci will sentence Harris on Nov. 30.

Ali Sullivan, 757-677-1974, ali.sullivan@virginiamedia.com