One of their own stole $140,000, now volunteer fire department tries to recover
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DURBIN, Ind. – For eight months, a group of about 20 volunteer firefighters in rural Indiana have been digging deep to keep their musty firehouse open.
They have spent their own savings to buy toilet paper and cleaning supplies and pay bills. They gave up their allowance earmarked for new boots, helmets and gloves to instead pay a delinquent tax bill.
Their integrity and competence have been questioned by residents, and they have wondered whether they have lost the public trust.
What is doubly dispiriting about their frustrating plight, say the men and women of the Wayne Township Volunteer Fire Department of Hamilton County, is that the turmoil was caused by one of their own.
“It was shocking,” said Capt. Pamela Taylor about the theft of nearly $140,000 by the department's treasurer, Norman Burgess, a longtime firefighter and emergency medical technician. “When you work together in a firehouse, you get to be like family. All of a sudden, we are not only paying for things out of our own pocket because of what was stolen, but people in the community are asking us how we let this happen.”
Burgess pleaded guilty in U.S. District Court for the Southern District of Indiana to one count of wire fraud for swiping funds from the department's bank account. Judge James Sweeney sentenced him to 15 months in a low-security prison and two years of probation after his release.
His was one of a slew of embezzlement and fraud cases the U.S. attorney and state prosecutors charged recently, almost all of them in small government offices that lack the resources for vigorous oversight of their budgets and savings. Often the nefariousness isn't even well-disguised and is discovered by the most cursory look from an outsider.
'How could they not know?'
In Wayne Township, the missing money was discovered after the Internal Revenue Service came asking for back taxes.
Now, the firefighters left behind – who have full-time jobs at grocery stores, hospitals and car dealerships – are dealing with the consequences. The theft has become a frequent topic of conversation in this community east of Noblesville, especially during the just-completed election season, with many residents criticizing the firefighters for a lack of oversight of Burgess, Chief Ron Taylor said.
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“This was brought up again and again at public meetings and political venues,” said Taylor, Pamela's husband. “People would say, 'Their guy was stealing. How could they not know?' ”
Some people went so far as to say Burgess, well-liked in the community, was the victim, Wayne Township Treasurer Diana Crim said.
“There was a lot of gossip going around that Ron was just a scapegoat,” said Crim. “He was gregarious, jolly, and many people thought he could never do anything like this.”
Prosecutors said Burgess wrote 112 checks to himself, collecting nearly $60,000, and made more than 200 cash withdrawals totaling more than $64,000. He spent the money on goods from Amazon, child support, a shoe collection and a relative’s burial expenses, according to prosecutors and fire department officials.
The amount was equal to more than half of the department’s annual budget of about $260,000, which is funded by the taxpayer-supported township trustee’s office. The trustee’s main duty is to provide fire protection to unincorporated areas, usually rural towns and farms, that are not covered by city fire departments. The trustee also gives emergency assistance, such as utilities and rent, to the poor.
The fire department was never flush with cash, and the volunteers are struggling to maintain the level of service they have provided the community since 1957, as well as some basic necessities.
"We are buying the toilet paper, Pine-Sol, cleaning supplies, light bulbs, bleach and soap,” said Assistant Chief Bryan Mason. “We almost had to buy medicine, but donations came in before we had to go that far.”
The biggest expense because of the theft was $42,000 in unpaid payroll taxes over several years for the two part-time workers and volunteers who get an hourly wage.
“One day the IRS came knocking on the door,” Crim said. “They told them they had to pay up and gave them an incredibly short period of time.”
The volunteers cobbled together their equipment and clothing allowances and dipped into personal accounts to pay the IRS before they could be penalized or have their nonprofit status revoked, Crim said.
Tight spaces – and budgets
Inside the firehouse, space is tight. Five old fire vehicles are crammed into the one-story building, with equipment such as helmets and axes squeezed against side walls or stuffed onto shelves. Three large couches and a big-screen TV gobble up most of the lounge area.
The department answers 350 calls a year, most for car accidents on the single-lane county roads, farm vehicle mishaps and medical emergencies, such as heart attacks. One of their most important pieces of equipment in a district that doesn't have fire hydrants is a 3,000 gallon tanker, which provides water to fight fires. It's one of the newer pieces, as well.
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“Our ambulance is 22 years old. A new one would cost $200,000,” Taylor said. “Our squad vehicle (an SUV) is 20 years old.”
The firefighters said they have put safeguards in place since Burgess' arrest. They hired a new accountant with a new payroll company, and the treasurer has a secretary who looks over every transaction. Any purchase more than $500 has to be approved by all the volunteers.
'You need more than one person with oversight'
The embezzlement of funds at the local government level is not uncommon in Indiana, authorities said. In October, Josh Minkler, U.S. attorney for the Southern District of Indiana, announced that 14 people faced state and federal charges of stealing in separate cases from governments around the state.
The amounts ranged from $1,256 to $400,000. Those charged included a treasurer at Greenwood Middle School, a township trustee in Bartholomew County and a county commissioner in Owen County.
Matt Light, a spokesman for the State Board of Accounts, said treasurers are able to pilfer funds when safeguards are not in place.
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“In small governments and nonprofits you need more than one person with oversight,” said Light.
Minkler said small governments can’t afford to hire independent accountants and finding someone among themselves who wants to take on the bookkeeping or is truly qualified can be difficult.
“In a small fire station, for example, the people there join because they want to go out and fight fires,” Minkler said. “They don't say, 'I want to join so I can pay their bills.' "
Minkler said the motivation for the embezzlement is usually no secret. “It’s straight up greed,” he said. “In almost every case these people committing these crimes have a legitimate income and just say, ‘I want more.' ”
Minkler said he has seldom, if ever, seen cases fueled by addictions to drugs or gambling or even some desperate need to cover a critical expense. On the contrary, many of those found guilty spend the ill-gotten funds on trivial items.
Among the items Burgess bought were a keyless fob for a vehicle, a flag, a costume mask, an Iron Maiden key chain and sports memorabilia, prosecutors said.
Burgess' attorney, federal defender William Dazey Jr., was unavailable for comment.
Hamilton County is suing Burgess to recover $600,000 it said the victims are owed for monetary damages, which include attorney fees, compensation for lost time and direct and indirect expenses incurred by the fire department and others suffering losses.
"Norm had a lot of friends, and they said we are making this all up," Pamela Taylor said. "But we weren't. You can't make this up."
Follow John Tuohy on Twitter: @John_Tuohy
This article originally appeared on Indianapolis Star: One of their own stole $140,000, now volunteer fire department tries to recover
