FBI Investigates $14.7 Million Fraud Involving Mobile Mayor Spiro Cheriogotis

The FBI and Department of Justice are investigating a massive fraud perpetrated against the city of Mobile involving a single wire transfer of $14.7 million related to Regions Arena construction. Mayor Spiro Cheriogotis confirmed the investigation, stating he did not learn about the transaction until Friday. The city has hired a law firm and a forensic accounting firm as part of its internal review.

The investigation centers on a fraud targeting taxpayer money. Mayor Spiro Cheriogotis has since tightened financial controls, requiring that checks be hand-delivered rather than wired or electronically transmitted. Federal agents stated that the Department of Justice and FBI will prosecute bad actors involved in the fraud.