The owner of Chattanooga-based Zentell Communications has admitted guilt in failing to deliver $300,000 worth of internet broadband expansion in Menlo, a project funded by the American Rescue Plan that local city officials say they never approved or saw any work performed for. This admission comes amidst a wider scandal linking the company to potential misappropriation of funds in Chattooga County, where a former county commissioner is now under state investigation.

Jonathan Allen, managing member of Zentell Communications, last week “affectively admitted guilt” regarding the unfulfilled broadband project in Menlo, according to city officials. Menlo City officials stated they had no knowledge of the project and observed no work being conducted by the Chattanooga company.

Meanwhile, current Commissioner Andy Allen confirms that the Georgia Bureau of Investigation (GBI) is continuing its probe into former Chattooga County Sole Commissioner Blake Elsberry for possible misappropriation of county funds. This investigation follows a lawsuit filed by Chattooga County in Superior Court in April against Zentell Communications and Jonathan Allen.

The lawsuit alleges that Zentell was paid more than $300,000 for work it did not perform under a contract approved by Elsberry during his tenure. The county’s civil action accused Zentell and Allen of breach of contract, willful misrepresentation, fraud, deceit, and misappropriation of county funds.

According to a court document signed last week, on July 14, Jonathan Allen admitted to the allegations in the Chattooga County lawsuit and agreed to a consent judgment in the amount of $333,265.

The situation is further complicated by the revelation that Blake Elsberry took a job with Zentell Communications immediately after leaving office in January of this year, a position he initially posted about on social media. Since then, Elsberry has reportedly scrubbed all mention of his employment with Zentell from his social media profiles. Elsberry has remained silent regarding the incidents and did not offere comments to the Chattanooga Times Free Press this week.