Chattooga County is taking additional legal steps to recover more than $300,000 in taxpayer funds tied to a controversial broadband project in the Menlo area that never materialized.

The issue stems from a contract approved in late 2024 under then-Sole Commissioner Blake Elsberry, in which approximately $333,265 in county funds — including American Rescue Plan Act (ARPA) dollars designated for broadband expansion — were awarded to Zentell Communications, a Chattanooga-based company. The project was intended to expand high-speed internet access in the Menlo area.

However, residents reported that no broadband infrastructure was installed and no internet service was provided. City of Menlo officials also indicated that they had not approved any such project within the city limits. Questions quickly arose regarding how the contract was awarded and how the funds were distributed.

In early 2025, the county filed a civil lawsuit in Superior Court against Zentell Communications and its owner, alleging breach of contract, fraud, and misrepresentation. The county is seeking repayment of the full amount paid under the agreement, along with damages and attorney fees.

Zentell later signed a consent judgment acknowledging a civil judgment in the amount of $333,265. Meanwhile, the Georgia Bureau of Investigation launched a criminal investigation into the matter after financial discrepancies were identified.

In January 2026, the owner of Zentell Communications was arrested on a felony theft charge in connection with the case. Authorities have stated that the investigation focused on the handling and use of public funds tied to the broadband agreement.

The controversy deepened after it was revealed that the contract was awarded shortly before Elsberry left office and that he later accepted employment with Zentell Communications. That sequence of events raised concerns among county residents about potential conflicts of interest.

Now, Chattooga County is moving forward with additional court action. Last week, the county filed a motion in Superior Court seeking records from several individuals and businesses as part of its effort to recover the funds and further examine the circumstances surrounding the contract.

Those asked to produce records include former County Commissioner Blake Elsberry, Gavin Swafford, Christy Slayton, Stephen Fortmann, Paladin Wireless, Higgins Traffic Solutions, Waterhouse Public Relations, S&S Property, and The Read House.

County officials say the goal is to fully account for the taxpayer dollars involved and ensure accountability in the handling of public funds. The case remains active in Superior Court as both civil and criminal proceedings continue.