The Georgia Bureau of Investigation (GBI) is investigating allegations of misappropriation of public funds by former Chattooga County Commissioner Blake Elsberry. The investigation was triggered by an audit of the county’s financial records earlier this year, which revealed several discrepancies related to an internet project in the Menlo area. According to Menlo residents and city officials, the promised internet project never materialized.

The audit uncovered several concerning issues, including:

Payments for services never rendered

Prepayments made before services were received

Overpayments exceeding contracted bid amounts

Failure to follow proper bidding procedures

Purchases involving potential conflicts of interest

Lack of proper contractor vetting

Failure to submit required federal reports Chattooga County Sheriff Mark Schrader confirmed that he passed information regarding the situation to the Lookout Mountain Judicial Circuit District Attorney’s Office, which prompted the GBI investigation.

A lawsuit filed by Chattooga County against Zentell Communications, a Chattanooga, Tennessee-based internet company, has intensified the scrutiny. The lawsuit alleges Elsberry authorized payments of over $300,000 to Zentell, utilizing funds allocated under the American Rescue Plan Act for expanding internet access in Menlo. Zentell Communications, registered in Tennessee in 2023 with Jonathan W. Allen as the principal agent, operates out of a residential address in Chattanooga. The company’s lack of visible presence in Menlo, coupled with Elsberry’s involvement, has fueled public concern.

Elsberry, who lost his reelection bid in May 2024, awarded the contract to Zentell shortly before leaving office in January and subsequently took a job with the company, raising further questions about potential conflicts of interest. Sources reported that Elsberry removed employment mention of Zentell from his social media profile after the lawsuit was filed.

Despite the substantial payment made last October, authorities in Menlo report no visible progress or work completed by Zentell.

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