With the former town manager of Pilot Mountain facing felony charges for embezzlement following the release of a state audit last month, town leaders are working to move forward while the investigation continues.
James Michael Boaz, the former town manager of Pilot Mountain, was the subject of a state audit in May after the North Carolina Office of the State Auditor received an allegation that he was misusing a town credit card, the report said.
Donna Kiger, the mayor of Pilot Mountain, told Carolina Public Press that Boaz served as the town manager from November 2015 until December 2024.
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The state auditor ultimately found that the former town manager used the town credit card for numerous personal purchases and violated town policies, the report said.
Chad Flowers, public information director for the North Carolina State Bureau of Investigation, said the Pilot Mountain Police Department and the District Attorney’s office reached out to the SBI in December 2024 to investigate the matter.
The report on Pilot Mountain
The state auditor examined almost 800 transactions from credit card statements between January 2022 and November 2024, totaling more than $317,000 spent by the former town manager, the report said.
The purpose of the audit was to determine whether the former town manager misused his town credit card, violated the town’s travel and purchase policies and more. What auditors uncovered was $2,300 in Visa gift card purchases, more than $14,000 total spent on food or food-related items and services — including $1,500 spent on DoorDash orders — in addition to money spent on Apple products, non-work related hotel stays, and even alcohol, the purchase of which with town resources is against town policy, the report said.
There were also questionable check reimbursements. The state auditor reviewed reimbursements to the former town manager between Jan. 1, 2022 and Nov. 30, 2024, finding that he submitted reimbursement for more than $500 in August 2022 going toward prepaid hotel reservations scheduled for that October. The state auditor couldn’t find how this was business-related after contacting the town and the hotel, the report said.
In June 2023, the state auditor also found reimbursements totaling $750 for hotel and meal costs from a conference that the town nor the hotel hosting the conference could confirm that the former town manager even attended, the report said.
The report also highlighted overall poor financial management by the former town manager. The former town manager allegedly had a stamp with the former mayor’s signature that he used to sign checks, removing the need for a second signature other than his own. He also distributed bonus payments to several part-time police officers that weren’t processed through the town’s payroll system, the report said.
Boaz also engaged in consulting practices with another municipality, which was technically allowed under his contract, but became an issue when it potentially interfered with his responsibilities to Pilot Mountain. He also used his town vehicle while consulting, which should only be used for town business matters, the report said.
When CPP asked Kiger whether the state auditor’s findings came as a surprise to the town or whether they already had certain suspicions about Boaz, Kiger said: “What matters most right now is making sure the Town of Pilot Mountain moves forward. The findings in the report are serious, and we are committed to addressing them responsibly and transparently while allowing the investigative process to run its course.”
Aside from the former town manager, the state auditor also noted that the town’s travel policy allowed him to approve his own travel payments, the report said. When asked how the town’s travel policy allowed this, Kiger told CPP again that what matters most right now is ensuring the town moves forward.
“The findings in the report are serious, and we are committed to addressing them responsibly and transparently,” she said.
The charges and next steps
On May 11, a Surry County grand jury indicted Boaz on felony embezzlement charges.
“The spending that happened under the guise of leadership in Pilot Mountain is an insult to that entire community,” State Auditor Dave Boliek said in a press release that day. “The indictment handed down today in Surry County, North Carolina, should serve as a warning to all who would steal taxpayer money that we will hold you accountable.”
A notice of appearance was filed on June 9, informing the court that Robert B. Laws would be representing Boaz as his attorney, according to court records. CPP reached out to Laws for comment but he did not respond prior to publication.
CPP also reached out to the office of Tim Watson, district attorney for the 23rd prosecutorial district of North Carolina, which covers Surry County, but was told the district attorney doesn’t comment on pending cases.
Brianna Kraemer, deputy director of communications for the state auditor, said the inclusion of artificial intelligence by the state auditor’s office improved efficiency while investigating.
“OSA is actively integrating artificial intelligence across data, audit and operational workflows,” Kraemer said in a statement to CPP. “For the Pilot Mountain report, AI-powered document processing allowed OSA to extract and structure data from bank statements, invoices and PDFs, making large-scale financial review more efficient while maintaining human oversight.”
The state auditor listed its recommendations for the town in its report, which included additional review of credit card and check transactions by the former town manager and improved independent oversight by town officials of credit card activity and payments, the report said.
Kiger said the town appreciates the state auditor’s work and is taking the findings seriously.
“Our focus is on implementing improvements, and ensuring the Town operates with the level of accountability and transparency our citizens expect and deserve,” she told CPP in a statement.
Those improvements and changes are already underway, Kiger said.
“The town has already begun reviewing and strengthening financial oversight procedures, including reimbursement approvals, documentation requirements, and internal review processes,” Kiger said.
“We are also evaluating additional safeguards and policy updates. Most importantly, we want our citizens to know that this board is committed to responsible stewardship of taxpayer dollars and rebuilding trust through openness, professionalism, and accountability.”
Boaz’s next appearance in court is a disposition hearing scheduled for Monday.
Flowers said the investigation into Boaz is still ongoing and more charges could be filed at a later date.
Pilot Mountain is a town of just under 1,500 residents in eastern Surry County, about 25 miles northwest of Winston-Salem and 20 miles south of the Virginia line.
The town takes its name from the distinctive nearby isolated domed rocky hill that rises 2,400 feet about sea level, but is southeast of the Blue Ridge Mountains that make up part of Surry’s western boundary. Neither the town of Pilot Mountain nor the peak are actually part of North Carolina’s mountain region.
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