Civil SuitCriminal LawMunicipal LiabilityYou Can't Make This Stuff Up
Indiana Sues Former Chief To Recover Missing Funds
The state of Indiana filed suit today against a former fire chief who is accused of embezzling nearly $60,000. Indiana attorney general Greg Zoeller’s office filed suit against former Speedway fire chief Mark Watson seeking to recover the taxpayers’ money.
The suit follows the release of a state audit into the department that uncovered a variety of improprieties Chief Watson engaged in, including:
- Creating a personal bank account in the name of “DBA Speedway F.D.” without the knowledge or permission of the town, and transferred $42,992.53 in funds belonging to the town into the account
- Creating a fictitious vendor called “Fireprof” and obtaining a purchase order to pay the company almost $4,500 for SCBA repairs. [The uncashed check was found among the chief’s office paperwork after he left]
- 158 prospective firefighters took an entry-level exam and paid $20 each, which was never turned over to the town
- Selling clothing purchased by the town to firefighters and not turning the funds for over to the town
- Overpaying himself for his clothing allowance
Chief Watson resigned in October after being confronted with questions about purchasing irregularities.
Here is a copy of the complaint: 7.30.15.State.v.Mark.Watson.complaint.to.recover.public.funds
Here is a copy of the audit: B45219
What is it with fire chiefs and embezzling? You hardly ever hear of police chiefs doing it, or public works, or water dept. No, it’s always the FD. Maybe the various states need to pass laws that command staff cannot have any contact with funds, and that all department accounts be audited annually.
Its a problem, that is for sure. Its more common in volunteer departments but it can happen anywhere. I think part of it is the trust aspect… and the lack of controls. There are many departments whether the very idea of putting controls in place is considered offensive because it implies the people in office cannot be trusted… and why make them jump through these unnecessary hoops when they are trustworthy (I know… I know… but I have heard these very sentiments expressed within the past few months). It creates the environment where these things can happen. Then there are those situations where a fire chief is hoping to find some money here or there to buy things that cannot otherwise be afforded… and cuts some corners… etc.
If *I* were Chief (to a chorus of “God forbids”), I’d ask that a second signature be required on all checks — including petty cash — and I’d ask for annual audits.
LOL!!!!!! Sorry… inside joke….
Question: Why does the State have to file suit to recover embezzled funds? Can the State not simply seize assets based on the Court’s criminal judgement against a guilty party (or by a court order based on that judgement)?
Allen
There are two ways a victim can recoup stolen funds. One is a court order of restitution in the criminal case. The other is a civil suit. In this case the state stepped in to bring the civil suit on behalf of the town as the town is a subdivision of the state. It is unclear what the status of the criminal case against the former chief is – as you suggest if the case was resolved it would be within the court’s discretion to award restitution. My guess is the state did not want to await the outcome of criminal proceedings (assuming criminal charges have been brought).
Thank you, Counselor! (I hope I never need this knowledge, but it’s nice to have.)
Sounds to me like Mr. Cameron was asking about civil forfeiture, as in drug and RICO cases.