KNOX COUNTY, Tenn. — Following a more than two-year FBI investigation, the former supervisor of the Knox County Sheriff's Office's narcotics division is accused in a federal indictment of spending seized drug fund money and using a drug expense card for personal purchases.
The indictment unsealed Thursday against former assistant chief David Henderson in U.S. District Court in Knoxville alleges other unnamed people joined him in the conspiracy, and that the activity went on for some seven years, from 2011 until 2018, while Henderson oversaw the sheriff's narcotics unit.
He's alleged to have directed subordinates to buy items that amounted to thousands of dollars ranging from electronics to herbicide to Yeti coolers to lounge chairs with the money -- for his benefit or that of his friends and family.
In 2017, the indictment alleges, he "directed several of his subordinate KCSO officers to construct a duck blind on private property owned by a former employee of Knox County for the personal benefit of the former Knox County sheriff," the indictment states.
The narcotics unit, like many other law enforcement agencies, maintained a drug fund that consisted of cash seizures. It was supposed to be used for KCSO operations, the indictment states.
Henderson rolled into court Thursday afternoon in a wheelchair to appear before U.S. Magistrate Judge Jill E. McCook to be arraigned on the count of conspiracy to commit program fraud.
A federal grand jury indicted Henderson this week.
Henderson, 52, will be released during his prosecution. Defense attorney Robert Kurtz told McCook by remote phone that Henderson had been undergoing treatment for a "cognitive impairment."
Kurtz also entered a "not guilty" plea on Henderson's behalf.
McCook set the case for trial in April before U.S. District Court Judge Thomas Varlan, but those first dates often get moved back.
The government's case is being prosecuted by Assistant U.S. Attorneys Frank Dale and Bill Roach.
Federal records show the government seeks the forfeiture of nearly 50 items from Henderson, including a Dell laptop, dash cameras, external hard drives, an Apple TV with a remote, and more than 10 Apple iPads or Apple MacBook Pros.
The indictment alleges Henderson ensured that receipts for the personal purchases were submitted to the county's Finance Department purporting to be for legitimate department needs. In fact, authorities allege, the items were bought just for Henderson's personal use or that of friends and family -- and the former Knox County sheriff.
Jimmy "J.J." Jones was sheriff during the period covered in the indictment. WBIR has reached out for comment to Jones, who is running against incumbent Sheriff Tom Spangler in the May county GOP primary.
It was part of the conspiracy, the indictment states, "that the narcotics credit card was used at Henderson's direction to purchase approximately $138,000 worth of Apple products between in or around 2011 and in or around 2018."
SPECIFIC ALLEGATIONS
The 21-page indictment document cites specific instances in which Henderson directed subordinates to use drug money for other than legitimate purposes, including:
- In September 2017, Henderson used cash from the drug fund to buy an industrial mat, extinguisher and spray paint to outfit "the former Knox County sheriff's personal duck hunting boat," as well as a post-hole digger to build a small privacy fence "at the former Knox County sheriff's personal residence."
- At various times in 2018, Henderson directed subordinate officers to do manual labor projects at either his home or a family member's home, including the construction of a screened-in porch and a garage renovation.
- In March 2018, he allegedly had a group of subordinate officers install a metal roof on a subordinate's home.
"The five subordinate officers who were working on the roof-installation project took a picture of themselves standing on the roof," the indictment states. "An officer who was not participating in the roof-installation project because he was teaching a law-enforcement class at the time, sent a text message to a group of officers on a group-text chain stating, 'Last time I checked my badge didn't say construction worker on it tho...it said officer. So u guys can keep talking shit...I'll be here doing police stuff and u guys can do that.'
The indictment continues: "Henderson's subordinate officer -- the former captain -- who was superior in rank to the other officers on the group-text chain responded to the group-text chain, explaining that the officers who were participating in the roof project were doing 'manual labor that they don't want to be doing either,' but that, 'We do what we have to do. Sometimes it isn't fun but it makes up for it on the fun days.
" 'You learn 3 things in this unit. 1. How to keep your mouth shut when needed. 2. When the Chief needs something done, we do it. 3. Take care of SIU (special investigations unit) before anyone else. You want to piss me off? Tell me you got paperwork to do and teaching a class again next time your partners are having to put on a f------ roof. Refer to number 3 above. Let this be a lesson learned.'"
MORE THAN 25 YEARS WITH KCSO
Henderson abruptly retired in April 2020 from the Sheriff's Office as the FBI looked into his conduct. At the time FBI spokesman Darrell DeBusk and the U.S. Attorney's Office in Knoxville said they could neither confirm nor deny the existence of any investigation.
Sheriff Tom Spangler, however, did confirm in April 2020 that the feds were looking into Henderson.
Spangler said in an April 2020 letter to WBIR: "I am aware the FBI is conducting an investigation involving Assistant Chief David Henderson. The matter of that investigation was prior to my administration.
"Additionally, Assistant Chief Henderson was relieved of his responsibilities within the Narcotics Unit in January 2019 by Chief Deputy Lyon. On October 14, 2019, Assistant Chief Henderson was reassigned to the Special Services Unit and has been in that role until present."
Henderson began working for the Sheriff’s Office in 1994 in corrections, his personnel file shows.
He was promoted through the ranks from patrol, working mostly in narcotics.
Henderson's Merit System Council file contained no mention of a federal investigation.
During his career with the Sheriff's Office, he was congratulated for helping in two homicide investigations - from 1996 and 2006.
In past evaluations, he got high marks for his positive attitude and ability to get along with others.
But defense attorneys, including prominent lawyer Herbert S. Moncier, raised questions about Henderson's conduct as a law officer through the decades.
