Ex-non-profit official charged with theft

Nov. 7—HERMITAGE — A former CEO of the Hermitage Little League is accused of stealing approximately a half million dollars from the organization and the Shenango Valley YMCA.

Robert David States, 40, of 2165 Saratoga Drive, Hermitage, was charged Monday by the Mercer County District Attorney's office with theft, access device fraud and misapplication of entrusted property and property of government or financial institutions.

States was CEO of Hermitage Little League from Jan. 1, 2019 through Feb. 28, 2022, when he was dismissed. He also served as president of the Little League Association from May 14, 2019 through March 4, 2021.

He was an official with the Shenango Valley YMCA prior to August of 2022, when the agency's management resigned and the Shenango Valley YMCA was placed in a regional management arrangement with YMCA centers in Grove City and Franklin.

The DA's office said the majority of the thefts took place through fraudulent credit card transactions and fraudulent bank check transactions.

This incident was discovered when YMCA board members discovered the organization had no financial, bank or IRS statements on record, causing significant financial issues with the organization. The Little League Association's current president informed the Hermitage police and the district attorney's office of the theft.

Detectives said the thefts were discovered after States' departure from the organization, and said States stole 39 unauthorized checks drawn on the association's account.

Fraudulent credit card transactions totaling $100,000 accumulated through two YMCA business credit cards. Investigators discovered the credit cards at States' residence after executing a search warrant, and seized a laptop computer used for YMCA business and a cell phone.

Detectives accused States of making a large amount of fraudulent purchases, totaling approximately $11,758, at Walmart for food, diapers, eyewear and household items. The allegedly fraudulent purchases also included a $450 gift card at a local restaurant, several purchases at local restaurants, bakeries, pharmacies, convenience stores, auto repairs shops, golf supply stores, DoorDash purchases, and medical and dental providers.

Charges on the two credit cards included amounts of cash, which was deposited into the YMCA bank account to meet payroll when funds were depleted. The cash charges totaled $85,347 over a three-year span.

The investigation also revealed that States wrote fraudulent checks to the Hermitage Little League Association from the YMCA bank account in an apparent attempt to reimburse revenue he had previously stolen. He is accused of writing 27 bank checks worth $40,060 to the Little League Association over a two-year period.

States also is accused of failing to pay $66,918, in funds withheld from employees' paychecks for tax payments to multiple withholding entities, including Social Security, Medicare, Unemployment compensation, and federal, state and local taxing bodies.

States also is accused of stealing by depositing YMCA revenue directly into his personal bank account. He issued payroll checks totaling $56,638 in excess of his salary for the three-year period he was CEO.

Detectives also found that States took out a high-interest loan for $20,000 in 2022 in the YMCA's name.

The agency had no invoices or documentation for the loan. Detectives said the loan funds were deposited into the YMCA bank account to supplement revenue. The YMCA then defaulted on the loan, resulting in a civil judgment against the agency in Mercer County Court of Common Pleas.

A further review of the Hermitage Little League Associations financial reports revealed that the defendant issued 24 unauthorized bank checks for $60,370 to the YMCA to replace revenue he was stealing from that entity. Detectives found 15 fraudulent Little League business checks were made payable to States or cash totaling $11,820.

States further transferred $10,600 in unauthorized funds in 2019 from a Little League savings account to the general checking account without board approval. Little League records show approximately $27,000 in unauthorized PayPal transfers from 2019 through 2021 and credited to the Little League checking account from an unknown credit source. The total amount of revenue from the Little League Association is $109,773. States did not receive a salary from the association.

Detectives also found that a 95-year-old Hermitage victim tried to set up a scholarship fund for underprivileged youth and met with States about it. They gave $52,500 for the scholarship fund to the YMCA but the fund was never established.

States was scheduled for arraignment Tuesday in front of District Judge Mary Ann Odem of Farrell.

A preliminary hearing has been set for Nov. 16 in front of Odem.

NOTE: All defendants are presumed innocent until proven or adjudicated guilty in court.

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com