Martinsville’s former city manager was fired due to dishonesty and other wrongful acts, including nearly losing the city $4.4 million in pandemic relief funds, shifting large amounts of money without city council approval and having subordinates live with her, according to a workplace investigation summary released by the city Wednesday.
Aretha Ferrell-Benavides was fired by the city council in August 2025. The summary includes more details about why she was terminated, and says that Ferrell-Benavides also engaged in questionable hiring practices and retaliation against city employees. The investigation was handled by the Sands Anderson law firm.
It is the latest in an ongoing municipal saga involving Ferrell-Benavides, the city council and attorneys that started about 16 months ago and includes several investigations, numerous lawsuits and an unsuccessful attempt to remove Mayor L.C. Jones from office. And now officials have disclosed that while all that has been playing out, the city was under a legal order to make a high-dollar decision to renovate or build a new courthouse.
The summary about Ferrell-Benavides — sent as a news release — is described as including facts that are “verifiable through city records, financial documents, and other non-privileged sources.” Information subject to attorney-client privilege or certain constitutional protections was not included, and the summary states that it reflects the city council’s “carefully considered effort to weigh the need for complete openness against the best interests of the city.”
“It was an extremely hostile work environment and it was some of the most difficult times I’ve ever had up here working under those conditions,” said Rob Fincher, the former police chief during Ferrell-Benavides’ tenure. Fincher is now the city manager.
“My job was constantly under threat and I was constantly being told that I needed to leave,” Fincher said.
The Wednesday summary goes on to describe the following:
- City financial records found that Ferrell-Benavides failed to turn in thousands of dollars in missing receipts, and she also made budget amendments and appropriated funds without council approval, including a $10 million school appropriation.
- She transferred nearly $170,000 from the economic development budget into her city manager fund, and she also let an employee use her card to purchase clothing and chocolate, totaling over $400.
- Multiple subordinates lived with Ferrell-Benavides, but the summary does not disclose the names of those employees, only to say that Ferrell-Benavides acknowledged the situation in an interview with the Martinsville Bulletin.
- The city almost lost its $4.4 million in pandemic money when required reports were not filed. Required filings for Sept. 30, 2024, and Dec. 31, 2024, were past due as of March 17, 2025, with the U.S. Treasury Department portal scheduled to close in two weeks. The reports were filed within 24 hours only after intervention by Congressman Morgan Griffith’s office.
Also, the summary states that Ferrell-Benavides purchased Jones and his girlfriend a hot tub and a few months later, he voted for Ferrell-Benavides to receive a salary increase of more than $30,000.
Responding to the allegations against her, Ferrell-Benavides filed a federal lawsuit last month alleging discrimination, a hostile work environment and retaliation.
Ferrell-Benavides’ attorney did not immediately respond to a request for comment Wednesday.
Jones filed a federal lawsuit the same day as Ferrell-Benavides. He alleges that councilman Aaron Rawls and Sands Anderson — the law firm representing the city — defamed him. Rawls has made counterclaims against Jones.
Jones was removed from office for part of this year after a city resident filed a recall petition. A circuit judge dismissed the case because the citizen did not get the required percentage of signatures.
Now comes the courthouse issue. Martinsville was put under a legal order to do something — and the council has been aware for months. Virginia is requiring the city to either build a new courthouse or renovate the current one. The current facilities do not meet the Virginia Courthouse Facilities Guidelines.
It will cost the city at least an estimated $46 million.
The current courthouse does not have separate designated spaces for judicial staff, the public and inmates, as required by the state guidelines.
This includes separate entrances, hallways and elevators, Fincher said.
“Anytime you’ve got chaos, it can slow things down,” Fincher said about making a courthouse decision while the city is embroiled in controversy.
The city did hire a company, Moseley Inc., in October to conduct a courthouse assessment.
That assessment found “major deficiencies” with the current court facilities, said Aaron Chupp, a Moseley representative.
After local interviews and assessing population shifts, Moseley estimated that a new courthouse would cost the city $100 million, and renovating the current one would cost about $46 million.
“I don’t want to have to write a $50 million check, but it’s a lot better than $100 million, and we don’t have any choice,” said councilman Julian Mei during a Tuesday meeting.
The city is especially struggling to find funds, particularly with the cost of litigation from the Jones and Ferrell-Benavides situation, Fincher said.
“It doesn’t matter if we’re the ones doing the suing or getting sued, it costs the city money,” Fincher said. “We’re getting beat up by this.”
The city is examining ways to pay for the courthouse renovation, Fincher said. Some debt tied to other capital projects will be freed up next year, which could create some funding, he said.
Fincher said he will also propose an ordinance to add $2 to court fees to generate revenue.
The city must submit a courthouse plan to the state by Sept. 19.
Virginia law requires all localities to provide the state with courthouses for state judges, and they must meet the facilities guidelines. The guidelines weren’t in place when Martinsville opened its municipal building, including the courthouse, in 1968.
The state has given orders to other localities across the state to build or renovate courthouses.
The Martinsville council approved the contract with Moseley on Tuesday to map the current building and present several courthouse options to the council — which alone will cost about $300,000. Moseley has done over 150 courthouse projects in the last 15 years.
Fincher, who stood with reporters and answered question after question following Tuesday’s meeting, said he never expected to be the city manager. The position fell into his lap after 31 years with the Martinsville Police Department.
“I just want to see the city get through this. That’s my goal,” Fincher said. “It’s for the love of the people here.”
