9 Investigates: Federal government suing area developer

CHARLOTTE, N.C. — The federal government is suing a longtime Charlotte developer and his family over more than a $1 million in unpaid taxes and penalties, court documents show.

Fred Godley Jr. and 12 family members are named in the civil lawsuit filed by the Department of Justice's Tax Division.

Documents show the case relates to unpaid estate taxes for the estate of Godley's late father.

The other family members have filed documents claiming Godley embezzled money that was earmarked to pay the taxes back in the mid-90s.

A Channel 9 investigation found Godley has a history of allegations of neglecting properties and not paying taxes.

Property records show an LLC owned by Godley owns a large property in the Burke County town of Drexel. The town's attorney told Eyewitness News Godley is $6,800 behind on taxes.

The property is a pile of rubble from the demolished Drexel Heritage furniture plant, the attorney said. In 2014, The North Carolina Department of Environmental and Natural Resources issued an "administrative penalty" of $12,750 to Drexel Property LLC, which is owned by Godley. A spokesperson told Channel Nine the department reached a settlement for a two-part payment plan. Godley made the first payment, but as of May 18 had not made the second one which was due May 1, the spokesperson said.

Property records for the city of Statesville show Godley is $12,000 behind on taxes for the property where the old Davis hospital sits. A city spokesperson told Eyewitness News Godley has agreed to demolish the property and clean it up. At that time, the property will be deeded to Mitchell Community College.

The city said the Statesville Council agreed to pay $75,000 toward the property along with Iredell County and Mitchell Community College.

Eyewitness News repeatedly attempted to reach Godley and his attorney for comment on the story, but never heard back.

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