MURRAY – A financial review during a leadership transition at HOPE Calloway uncovered more than $52,000 in unauthorized payments to its former executive director, who investigators say issued extra payroll checks to himself and used nonprofit funds for personal expenses.
Nathaniel “Nathan” Carter, 40, of Kirksey, was arrested Wednesday, Feb. 4, on theft-related charges after financial discrepancies were discovered and reported to authorities. A complaint warrant filed in Calloway District Court charges him with 19 counts of theft by deception and one count of theft by unlawful taking.
Immediately following Carter’s arrest, the organization’s board of directors posted a statement on social media.
“During a routine leadership transition and organizational review, in partnership with an independent third party, the Board of Directors identified financial discrepancies involving the former Executive Director that required further review,” the statement read. “The Board has engaged legal counsel and is taking appropriate steps, including reporting the matter to the proper authorities. HOPE Calloway remains fully operational and committed to compassionately serving individuals and families in our community.”
The investigation began after Carter told board members in late 2025 that HOPE Calloway was running out of money and would need to hold another fundraiser, the affidavit states.
The statement raised concerns among board members, who authorized a financial review to determine how the organization was running out of money and asked Roy Riley, who has a financial background, to assist in examining the nonprofit’s records. Investigators say Riley examined bank statements and payroll data spanning several years and identified irregularities in Carter’s compensation.
HOPE Calloway employees are paid biweekly, or 26 times per year, through direct deposit. Carter, as executive director, was responsible for processing payroll and was a signatory on the nonprofit’s checking account. The checks did not require a second signature.
Riley found Carter received significantly more paychecks than expected — 36 in 2024 and 35 in 2025. Investigators allege that on the same dates he received electronic payroll deposits, Carter wrote himself paper checks for the net amount of those paychecks.
On Jan. 23, Riley and Board President Jeremy McKeel met with Carter to discuss the discrepancies. During the meeting, which investigators said was audio recorded, Carter acknowledged writing additional payroll checks to himself. He told board members he began doing so when he was running short on money and intended to repay the funds. The affidavit states Carter admitted to “having issues with impulsivity” and said he could not recall how many times he had issued additional checks to himself.
Between 2023 and 2025, Carter issued himself extra payroll checks totaling $38,210.21, court records state.
Investigators say Carter used HOPE Calloway funds to make payments totaling $6,538.05 on a Capital One credit card. McKeel told police the organization does not have an account with Capital One.
The affidavit further alleges Carter used nonprofit funds to pay $7,478.98 in expenses related to the Maxwell Leadership Conference, including registration fees and other charges that McKeel said had not been approved.
In total, court records indicate Carter took $52,227.24 from HOPE Calloway through extra payroll checks, credit card payments and conference-related expenses.
HOPE Calloway provides transitional housing and resources for unhoused individuals and families in Calloway County. The organization was formed in 2020 when the Murray Calloway County Homeless Coalition and Gentry House merged. Carter, who led Gentry House at the time, became HOPE Calloway’s inaugural executive director.
Leadership transition preceded investigation
HOPE Calloway publicly announced Carter’s departure in a Dec. 12 social media post, sharing a letter in which he said he had decided to step down after “a lot of thought and prayer.” Carter described the decision as part of a transition to a “new chapter of growth” and said he would remain available to support staff and incoming leadership.
Three weeks before his arrest, Carter publicly discussed his departure during an appearance on “Mornings in Murray” on local radio station WNBS.
Asked why he was stepping down after seven years leading the organization, Carter said, “There’s a season and a time for everything.”
At the time, Carter said incoming executive director Amber Sugg, whose hiring was announced in January, brought strengths in financial planning and forecasting.
“Now, with Amber coming in to provide some great stability, she has such a great track record and some great insight into the financial stability and the long-term planning and financial forecasting and some stuff that, honestly, is not my strength,” he explained.
Carter told listeners he planned to remain involved with HOPE Calloway and Community United Benevolent Services, the affiliation of local nonprofits known as CUBS, and had taken a job teaching a weekly business leadership class at New Covenant Christian Academy in Hardin.
Charges follow board review and police investigation
The Murray Police Department began investigating Carter on Jan. 28, after being contacted by the nonprofit regarding financial discrepancies identified during the leadership transition.
Calloway District Judge Randall Hutchens set Carter’s bond at $100,000 cash. Carter posted bond two days later and was released from custody. A previously scheduled hearing on his petition for a writ of habeas corpus challenging the bond was canceled.
Carter is scheduled to be arraigned in Calloway District Court on Tuesday, Feb. 17, at 9 a.m.
Individuals charged with crimes are presumed innocent until proven guilty in a court of law.
