CHARLOTTE, N.C. — The newly named head of Charlotte Mayor's racial equity initiative has resigned after less than two weeks on the job.
WCNC Charlotte uncovered Kimberly Henderson led an agency in Ohio that, according to an audit, mishandled billions of dollars.
Henderson stepped down as director of the Ohio Department of Job and Family Services in March. In the months since then, an Ohio state audit identified a "lack of controls" within that agency that resulted in $3.8 billion worth of unemployment fraud and overpayments during the pandemic.
"We are deeply sorry for the distraction this has caused to work that is critically important to our community," the Charlotte Regional Business Alliance said in a statement. "We also want to formally acknowledge the resignation of Kim Henderson as Executive Director of the Employer Office of Inclusion and Advancement. We are committed to more conversation, better process, and involvement with the Mayor and the broader community moving forward."
The state auditor said he launched the audit "after ODJFS initially failed to disclose the risk and magnitude of ongoing fraud within the unemployment system."
Following Henderson's departure, the Ohio Attorney General's Office requested state and local police open a criminal investigation in May into "whether or not any criminal statutes were violated, including Dereliction of Duty, Obstruction of Official Business and/or Falsification by the former director and/or other staff members of the Ohio Department of Job and Family Services," according to a letter obtained by WCNC Charlotte.
After careful consideration, I have decided that stepping down from my new role as Executive Director of the Employer Office of Inclusion and Advancement is in the best interest of the continued success of the Charlotte Mayor's Racial Equity Initiative. The work of the Initiative is too critical to be jeopardized in any way by public misperceptions related to my prior leadership as a Cabinet Director for Ohio Governor Mike DeWine.
I am deeply sorry for the negative attention that has been brought to the Mayor’s Racial Equity Initiative, Mayor Lyles, and the Charlotte community.
I am not the subject of any criminal investigation. In response to the pandemic, my top priority as Director of the Ohio Department of Job and Family Services was assisting nearly two million citzens in need as quickly as possible. Foreign and domestic criminals used the pandemic as an opportunity to defraud unemployment benefits systems across the nation at an unprecedented scale.
Many of the improvements that were launched during my tenure are now fully operational. I am proud of what my team accomplished for the citizens of Ohio in the midst of historic challenges.
I appreciate the confidence in my leadership abilities that Janet LaBar, Malcomb Coley, and Michael Lamach have shown. I am also grateful for the kind people that I have met in Charlotte.
I am a devoted servant leader of high integrity. With the support of my husband and son, and a strong commitment to my faith, I look forward to continuing impactful work in Charlotte.
Charlotte Mayor Vi Lyles addressed the resignation Monday.
"When you make a mistake own it, step up, apologize for it, and tell people you're going to do better," Lyles said Monday. "That's what I said to the alliance."
Lyles said she will now take an honorary position on an oversight board for the initiative.
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