Jackson, Miss. The Mississippi Secretary of State is investigating the funding of Meridian's new police headquarters.
The investigation is to determine whether developer David Watkins fraudulently diverted funds from a mall project in Jackson to fund the land deal with the city for the police station.
In a legal notice, Delbert Hosemann says Watkins Development diverted about a half million dollars in bonds for the Metrocenter Mall project to close the deal on the police station project.
Hosemann is seeking administrative penalties plus restitution of $587,084.
Watkins denied any wrongdoing during an administrative hearing that ended this week before an administrative officer at the secretary of state's office.
Watkins' attorneys have acknowledged he moved the money from a Retro Metro bank account that was set up for the mall redevelopment to the law enforcement project in Meridian.