The former treasurer of the Mahopac, NY, Volunteer Fire Department has pleaded guilty to stealing $5.7 million from the department since 2002.
According to an article in the New York Post, Michael Klein, 48, himself 275 checks from the department’s account starting shortly after he became treasurer, the newspaper reported.
Among the things Klein allegedly used the money for included a $9,000 1931 American LaFrance engine, a $55-foot motor yacht a second home in Florida, a Mercedes, a Harley and a smaller motor boat, the newspaper reported.
Additionally, he tallied $2.5 million in credit card debt, spending money on jewelry, watches and trips, the paper reported.
The newspaper reported the fire department brought in about $2 million annually from gifts and contributions with much of it coming from public funds and rental of its fire hall.
Authorities said Klein wrote checks from MVFD to his businesses, one involved with the sale of equipment to fire and police departments. Klein would record the money sent to his businesses under the names of other vendors. When questioned, he would give fake invoices.
Klein’s embezzlement scheme was simple: He wrote checks from the MVFD’s coffers to one of two businesses he owned, including one that sold equipment to fire and police departments including guns.
But Klein hid that fact that his companies were getting Mahopac money by recording the expenses under the names of other vendors. If questioned, he would produce fake invoices, sources said.
“They were borderline hoarders,” said a person familiar with the probe. “They could have run their own shopping center from that house.”
Klein’s embezzlement scheme was simple: He wrote checks from the MVFD’s coffers to one of two businesses he owned, including one that sold equipment to fire and police departments including guns.
But Klein hid that fact that his companies were getting Mahopac money by recording the expenses under the names of other vendors. If questioned, he would produce fake invoices, sources said.
The New York State Police started investigating the case in 2015 and were joined by the Office of the New York State Comptroller, which partnered with Manhattan US Attorney.
Following his plea in federal court on Tuesday on charges of wire fraud and obstructing a grand jury investigation among other charges, the newspaper reported. He faces up to 67 years in prison when he is sentenced in June.
