Lenoir County sued over alleged $1.3 million fraudulent payment, FBI investigating
Berry Building Group, a Greenville-based contractor, has filed a lawsuit against Lenoir County and several county officials, claiming the county owes them more than $1.3 million following a fraudulent email scam that redirected payments. The lawsuit was filed on July 3, 2025, with the complaint document file-stamped July 17, 2025.
According to a press release Friday afternoon, the Lenoir County Sheriff’s Office is actively investigating a fraud involving the Lenoir County Government. This is being done with the assistance of the Federal Bureau of Investigation locally and nationwide.
Lenoir County’s press release stated, “This is all we can report on at this time. This is a very active investigation.”
The dispute centers on a multi-million dollar contract for renovations to the Lenoir County Administrative Building located at 101 North Queen Street in Kinston. Berry Building Group entered into an agreement with the county on or about March 15, 2023, for these construction services. The initial contract amount was $3,575,000.00.
According to the lawsuit, progress payments were to be submitted by Berry Building Group to Dunn & Dalton Architects, P.A., for review, and then forwarded to Lenoir County for payment. While the first Application for Payment was reportedly paid without issue, the lawsuit alleges that the second, third, and fourth Applications for Payment, totaling $1,340,786.26, were not paid by the county. Additionally, $38,665.18 is claimed for retainage from Applications for Payment 1 through 12.
The core of the allegation is that in September 2023, county officials allegedly received a revised vendor packet via email from a fraudster posing as an employee of Berry Building Group. The lawsuit claims that county employees adjusted their payment processing to match the fraudulent email's details and sent three payments, amounting to $1,340,786.26, to fraudsters instead of the contractor. The complaint suggests that clear and obvious red flags were present in the fraudulent email and ACH instructions, including altered phone numbers and suspicious syntax. Berry Building Group states that large sums of money were given via the pervasive nature of electronic transfer and ACH scams, and it was reasonably foreseeable that these actions would damage the plaintiff.
The lawsuit names Lenoir County as a defendant, along with Devita & Associates, Inc. (an engineering firm), and Dunn & Dalton Architects, P.A. (a professional association). Individual defendants include:
• Amy Perry, a partner and project manager for Dunn & Dalton Architects, P.A.
• Michael James, Lenoir County Manager.
• Adam Short, Assistant County Manager for Lenoir County.
• Sandra Barss, Finance Director for Lenoir County.
Berry Building Group states that they were present at several meetings with county officials regarding the missing payments and were assured that the county was working with insurance to resolve the issue. In a May 2024 meeting, County Manager Michael James reportedly told Berry Building Group that the county had secured $500,000 in insurance and would work to secure the remaining balance. However, the lawsuit states that none of the promised money was paid to the company either through the partial completion of the project or afterward.
The renovation project was substantially completed by May 29, 2024, and final completion was achieved thereafter. Despite the completion, Berry Building Group claims they have only received $2,484,825.26 to date.
When contacted by other news outlets for comment, Lenoir County Attorney David Baxter stated that his firm does not comment on ongoing litigation. In an internal communication, Linda Rouse Sutton, the Chairman of the Lenoir County Board of Commissioners, indicated that their attorney had advised them not to make comments because they are being sued.
John Berry, President of Berry Building Group, issued a statement through his attorney, emphasizing that the company takes pride in the work completed and delivered on time and to a high standard, without cutting corners or making demands.
He expressed regret over being "forced to take legal action simply to be paid for the work we’ve done" and hopes the county will "do the right thing" and honor its commitments. Berry also stated that the goal has always been to resolve the matter fairly, without wasting more time, money, or resources, especially those of the county's taxpayers, and looks forward to continuing to build projects and relationships in the communities they serve.
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