An investigation by the Tennessee Comptroller’s Office has resulted in the guilty plea of former City of Townsend Manager Danny Williamson after investigators determined he misappropriated at least $3,954 in city funds to make personal purchases. The investigation began after city officials reported questionable purchases to the Comptroller’s Office.
From July 2020 through February 2024, Williamson used city credit cards and store credit accounts to buy clothing, home goods, and other items for his personal benefit.
Williamson’s employment contract with Townsend ended on June 30, 2024.
On June 27, 2025, Williamson pled guilty in Blount County Circuit Court to one count of theft of property over $2,500. He was granted judicial diversion and placed on supervised probation for three years. Williamson has also repaid the city $3,995.
In addition to the misappropriated funds, investigators identified at least $19,853 in questionable purchases on city credit cards and store credit accounts that lacked itemized receipts or documentation. These purchases included food, hotel stays, supplies, and other items. Investigators could not determine if the purchases benefited the city.
Investigators also found a city maintenance employee used the city garage to work on personal vehicles belonging to a city commissioner and certain city employees. The work occurred after normal business hours using city equipment. Although officials stated parts were privately purchased and no labor was paid, the use of city facilities and resources for personal benefit violates Townsend’s municipal code and increases liability risks.
“This case is a reminder that city assets and personnel must be used solely for public purposes,” said Comptroller Mumpower. “Proper review of purchases and stronger oversight by governing boards are necessary to prevent misuse of taxpayer money.”
