Royal gets probation, deferred prison sentence

Published Tuesday, February 14, 2012


Royal gets probation, deferred prison sentence

By Alex McRae

The Newnan Times-Herald

Newnan accountant Mayo Royal Jr. was sentenced to serve five years in prison and a total of 15 years on probation after pleading guilty Monday to seven counts of theft by taking and one count of false swearing in connection with Royal's mismanagement of the estate of the late Edgar B. Hollis.

The terms of the sentence are unusual in that Royal will serve five years on probation prior to serving any prison time. The sentence was passed by Coweta Superior Court Judge Jack Kirby in proceedings Monday morning at the Coweta Justice Center.

On count one of theft by taking Royal was sentenced to 10 years, to serve five years in prison with the balance on probation. Counts two through seven of theft by taking -- to which Royal also pleaded guilty -- were merged with count one for sentencing purposes.

Royal's plea of guilt to count eight -- false swearing -- carried a sentence of 10 years probation, with the sentence to be served consecutive to -- or following -- the sentence for count one.

The plea agreement calls for Royal to make restitution in the amount of $200,000 to the Hollis estate while serving the probation.

Assistant District Ray Mayer of the Coweta Judicial Circuit acknowledged that the plea allowing Royal to serve probation prior to serving time was "unusual," but Mayer said the terms "give the estate the best chance to collect restitution, which is substantial."

As part of the plea agreement, Royal's defense will file a motion for reduction of sentence, which the court will hold open for five years. If Royal meets the terms of his probation and makes restitution as agreed, the court may then consider the motion for reduction of sentence.

Under the terms of the written plea agreement the five years probation on count one commences immediately. The five years to serve are deferred on condition that Royal complies with all terms and conditions of the plea agreement.

Under that agreement Royal must pay $200,000 to the estate of Edgar Hollis, through counsel, as follows:

Royal must pay "$85,000 on or before May 1, 2012; monthly installments of $1,450 for two years, followed by monthly installments of $1,750 for three years; with the balance of $17,200 to be paid from the proceeds of the sale of Defendant's (Royal's) home (Defendant to consent to a lien thereon to said Estate in the meantime) and otherwise as necessary."

Judge Kirby also granted Royal's request for first offender status.

Royal was represented Monday by Atlanta attorney Donald F. Samuel.

Following the sentence, Royal released a written statement which read: "I appreciate the opportunity to make restitution and I truly regret the errors in judgment that I made as administrator. I am very appreciative of the support, patience and prayers of my family and friends throughout the legal process. Most of all, I want to thank my Lord and Savior, Jesus Christ, for indeed being my enduring strength throughout this ordeal. While I realize this is far from completed, it is that same strength that now enables me to move forward."

Former Newnan resident Edgar Baldwin Hollis died on June 17, 2006. In his will, Hollis bequeathed a home he owned at 32 Nimmons St. to the City of Newnan, with a request that the residence be used as a museum if possible. The will bequeathed funds for operating the museum.

Royal -- who had been performing some of Hollis' personal accounting services -- was named executor of the Hollis estate and presented the offer of the home to the city. The will permitted Royal to pay his accounting firm "reasonable compensation" for its services.

After lengthy study and consideration of the cost to restore the home and maintain it as a museum, the City of Newnan declined the offer of the home.

The will also stated that "in the event the City of Newnan is unable or unwilling to accept this bequest... it shall pass to the Newnan-Coweta Historical Society, its successor, or a comparable charitable entity."

In the ensuing months, Royal made bequests to both the City of Newnan and the Coweta Community Foundation. The City of Newnan returned the sum of $150,000 in July 2009 but civil suits from other interested parties followed.

In January 2009, Fred Blackwell, the trustee of a testamentary trust that was listed as a beneficiary of the last will and testament of Hollis, filed a civil action in which he sought an accounting of the Hollis estate, the removal of Royal as executor, and damages resulting from Royal's purported breach of his fiduciary duty.

In 2009 the Newnan-Coweta Historical Society filed suit, claiming that the funds from the Hollis estate should rightfully have gone to the society. Some of the funds had already been distributed from the Hollis estate by Royal to the Coweta Community Foundation, which later returned the funds as part of the settlement process.

Following Royal's resignation in May 2009 from the post he had held since August 2006, the Probate Court of Coweta County appointed local attorney Robert Hancock as temporary administrator of the Hollis estate, and, in December 2009, the court granted the estate's motion to intervene.

In 2009 Coweta County Superior Court Judge William F. Lee ruled in a judgment against Royal in a related civil case that was partially upheld and partially overturned by the Georgia Supreme Court in 2010.

In originally granting the motions in favor of Blackwell and Hancock, the court found that Royal had breached repeatedly the fiduciary duty he owed the estate and that those breaches supported an award of damages to Blackwell and the Hollis Estate and a forfeiture of any compensation paid to Royal as executor.

In September 2011, Royal was indicted by a Coweta County grand jury on seven counts of theft by taking and one count of false swearing for alleged activities regarding his handling of the Hollis Estate.

It was alleged that after becoming executor of the Hollis estate, Royal began paying himself $2,500 per month for accounting services, a much greater sum than the $225 per month Royal had allegedly been charging before Hollis' death.

In addition to allegedly charging excessive amounts for administering the Hollis estate, Royal was also alleged to have made improper investments of estate funds, including the purchase of a condominium in Seagrove Beach, Fla., in the name of the Hollis Trust at a cost of $520,000.

It is also alleged that Royal never filed any estate tax or income tax returns on behalf of the estate with the Internal Revenue Service or the Georgia Department of Labor.

Those charges are all concluded with Monday's guilty plea by Royal.

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