Soon-to-be Shelby County Commissioner LaShanta Rudd has been accused of misappropriating City of Memphis taxpayer money.
According to an internal memo from the City of Memphis, the political novice allegedly misused over $10,000 in grant funding intended for use by her nonprofit, Serving In Christ Outreach. The missive was dated Jan. 23, 2026.
Instead of going towards youth mentorship and job training, auditors found the money was used to purchase a used car. Rudd also is accused of paying for building maintenance and unauthorized personal expenses with the cash.
A 2015 Nissan Sentra was purchased for $5,000 and $48.98 was spent on an oil change for a 2007 Honda Odyssey, according to the city document. Another $2,600 in public funds was unaccounted for.
“We noted expenses for residential repairs (flooring, HVAC duct cleaning, security door), a vehicle purchase, including registration, vehicle maintenance and other noncompliant activity,” read the memo. “We determined that these expenses should be reimbursed to the City.”
The investigation ran from July 1, 2024 to June 30, 2025.
The commissioner-elect has been banned from receiving City of Memphis grant funds again. Her nonprofit received more than $13,000 in FY2025. Since being founded in 2010, it has benefited from over $88,000 in municipal funding.
Rudd has not commented on the allegations.
The Memphis City Council awards around $2.5 million in grants to nonprofits annually. The money must also be used for its stated purpose.
Rudd won her District-10 Democratic primary contest by a comfortable 15-point margin in May. No Republican or Independent candidate filed for the August general election.
The district covers parts of Orange Mound, Cooper Young, Castalia Heights and the Memphis Airport area.
However, Rudd ended her write-in candidacy for the Tennessee House District-93 seat. She launched her bid after the death of state Rep. G.A. Hardaway in April.
Last year, former Shelby County Commissioner Edmund Ford Jr. was indicted for misuse of commission grants.
Three nonprofits were accused of funneling over $250,000 to an account linked to Ford’s computer business, E&J Computer Services and Repair and Precise Solutions and Consulting LLC, in exchange for the grants.
The indictment accused Ford of disguising the revenue as charitable donations on IRS returns. In February, he pleaded guilty to five counts of federal tax evasion and attempted tax evasion. He resigned his seat immediately afterward as a condition of his plea deal.
