Confusion Reigns in CEIDC Gentry’s Lawsuit

By Greg Ritchie

Messenger Reporter

CROCKETT –  Well before voters voted to shut down operations at Crockett Economic and Industrial Development Corporation (CEIDC) in November 2024, its embattled Executive Director James Gentry had already filed a million-dollar lawsuit against the city, alleging racism, wrongful termination and defamation. 

Jury selection is set for Monday, Nov. 17 in the Eastern District of Texas court under Judge Michael J. Truncale in Lufkin. The Messenger has since learned of more details in the case, which provides insight into the ongoing machinations behind the legal proceedings. Gentry is suing the City of Crockett, along with Crockett Mayor Dr. Ianthia Fisher, Councilman Mike Marsh and former Councilman Gene Caldwell. 

Attorneys for the City of Crockett maintain Gentry’s lawsuit should be dismissed, noting none of Gentry’s claims are legally valid, citing the many audit findings, the fact that the audit covered many years, including before Gentry’s tenure, and the fact that the city had a right to change the structure of CEIDC, its board, and order audits and investigations. The fact that Gentry’s contract expired during his paid leave of absence and that he continued to be paid until CEIDC was voted out of existence shows there was no bias. 

They gave arguments to each of Gentry’s allegations as follows:

Due Process: No violation because Gentry was placed on paid administrative leave, not terminated, and thus no property right was infringed.

Racial Discrimination: No evidence he was treated differently than similarly situated employees. Any difference had a rational basis (audit findings).

Tortious Interference: No valid employment contract existed after April 2023, so the claim fails.

Defamation: Motions by council members calling for investigation were based on audits and did not contain false statements; defendants also have immunity.

Wrongful Termination: Not a recognized cause of action; Gentry was never terminated.

Retaliation: Equal Protection Clause does not provide a cause of action for retaliation, and the timeline disproves his claim (his contract expired before he filed suit).

The city’s response notes some of the findings of the various audits, including pre-signed blank checks stored in Gentry’s desk, unauthorized bonuses paid to Gentry outside payroll, missing bank records totaling $451,329, payments not reported on tax forms, nepotism in hiring and contract payments to relatives, and unauthorized loans using city sales tax as collateral.

The Messenger has obtained documents showing the parties gathered July 7 for arbitration, although the parties could not agree, leading to the trial date. 

Here, as they say, is where the plot thickens. 

Gentry’s longtime attorney is Houston-based lawyer Carroll Robinson. Robinson has always been open and forthcoming and The Messenger was able to confirm with him they called in another Houston attorney, Nickolas Anthony Spencer, to help with the federal side of the suit. Spencer appears on several records representing Gentry and was expected to plead his case in the upcoming trial. 

The Messenger, thanks to concerned residents who shared their investigations with us, was able to confirm Spencer was suspended from practicing law for two years as of June 1, 2025, with another two years on probation. Spencer himself did not attend his own hearing, which stemmed from allegations he was found to be neglecting a client’s case. The suspension orders Spencer to notify clients about his suspension, although the news seemed to surprise Gentry’s representatives, who told The Messenger Spencer was part of a larger firm, where other lawyers would stand in for him.

We were unable to find Spencer registered with any other legal firm other than his own, and all known phone numbers for him were not in service. Spencer was publicly reprimanded in 2022 for neglecting a client and was reprimanded by another judge in 2020 for showing up almost an hour and a half late to a client hearing. 

“The hearing had been set for over five weeks. Spencer never moved to continue the hearing. When he appeared at 5:20 p.m. for the 4 p.m. hearing, it had concluded and the court had moved on to another matter. Rather than apologizing to the court for wasting its time and (the client’s) time and money, he blamed the court for holding the hearing despite his absence and moved to reset it,” the document stated. 

City leaders and city legal representatives were unable to confirm whether this situation might lead to a possible delay in the trial, although it would seem unlikely to be approved, since supposedly Gentry’s team would haven known about this since June. 

While some have speculated the city might settle with Gentry, the strong legal arguments made in legal filings show the attorneys representing the city feel they have a strong case and will argue fiercely, whenever the matter finally comes to trial. 

The Messenger will update this story as new information and our requests for further documents come to light. 

Greg Ritchie can be reached at [email protected]