Federal Probe: Mahopac FD Mising $5 Million Dollars

[Viper 139]

From LoHud.com:

Carmel wants to cut its contract with the Mahopac Volunteer Fire Department by 32 percent as part of the fallout of a probe into up to $5 million of missing funds.

Cuts would retain operating funds, but no money for new apparatus or equipment

http://www.lohud.com/story/money/personal-finance/taxes/david-mckay-wilson/2015/11/11/mahopac-fire-contract/75182806/

[x635 4,066]

I think cutting funding (prematurely, IMHO) for new apparatus and equipment unfairly punishes the Mahopac firefighters as a whole, as well as the community they protect. They still need tools to do their job to properly protect the citizens. Cutting funding for these items also compromises firefighter and EMT safety. Running a fire department and EMS service of that size ain't cheap.

The financial issues are of serious concern. They have failed in their responsibility and trust they have placed in them by the taxpayers to spend the money appropriately, and account for where it is going. A few thousand is one thing, but having $5 million dollars go missing over 10 years and have no one notice, that's a situation that needs deep investigation and serious reform. All the details have yet to be presented, so it's hard to speculate how it actually occurred and who needs to be held accountable for all facets of this. I'm sure we'll find that out in the coming months.

However, until the investigation and forensic accounting is completed, I don't think slashing funding by the town, not replacing a tanker, not maintaining the current fleet, and not maintaining the stations is a smart move and is premature. In the end, it punishes the taxpayers more. Not giving the Mahopac Firefighters and EMT's the equipment they need to do their job just hurts everyone all around. But, these items do need serious oversight by an outside party until everything is back in order. As does how they spend their money and on what. Maybe freezing spending, on things such as social items, would be more wise. For example, $77,000 yearly on parades is a lot of money, and a compromise would show good faith in the meantime. In the end, transparency will be key in regaining taxpayer trust.

[antiquefirelt 994]

For example, $77,000 yearly on parades is a lot of money,

Wow, if that isn't an understatement! I know numerous VFD's that run the whole show on far less than that. At $77k/yr I can see how a dept. can go to so many parades without affecting public safety resource, they could buy a parade engine so the real engines could be in quarters!

[velcroMedic1987 330]

I think cutting funding (prematurely, IMHO) for new apparatus and equipment unfairly punishes the Mahopac firefighters as a whole, as well as the community they protect. They still need tools to do their job to properly protect the citizens. Cutting funding for these items also compromises firefighter and EMT safety. Running a fire department and EMS service of that size ain't cheap.

The financial issues are of serious concern. They have failed in their responsibility and trust they have placed in them by the taxpayers to spend the money appropriately, and account for where it is going. A few thousand is one thing, but having $5 million dollars go missing over 10 years and have no one notice, that's a situation that needs deep investigation and serious reform. All the details have yet to be presented, so it's hard to speculate how it actually occurred and who needs to be held accountable for all facets of this. I'm sure we'll find that out in the coming months.

However, until the investigation and forensic accounting is completed, I don't think slashing funding by the town, not replacing a tanker, not maintaining the current fleet, and not maintaining the stations is a smart move and is premature. In the end, it punishes the taxpayers more. Not giving the Mahopac Firefighters and EMT's the equipment they need to do their job just hurts everyone all around. But, these items do need serious oversight by an outside party until everything is back in order. As does how they spend their money and on what. Maybe freezing spending, on things such as social items, would be more wise. For example, $77,000 yearly on parades is a lot of money, and a compromise would show good faith in the meantime. In the end, transparency will be key in regaining taxpayer trust.

You started this with "I think". Everyone has an opinion.

The community is up in arms because they've been paying taxes for fire service and they've been building a cash cow that allowed someone to allegedly abscond with 5 MILLION dollars.

What is the annual budget of the department?

How much "reserve" do they need?

What is their financial PLAN?

Do they have a plan?

The taxpayers who paid for all this are understandably upset. Demanding accountability before spending millions more is not unreasonable. The investigation and accounting will not take long at which point they can reassess the needs of the department and plan accordingly.

To use your line... "I think" it is safe to assume that there won't be a $5M reserve there in the future.

Makes us all look bad and is a travesty!

[x635 4,066]

The community is up in arms because they've been paying taxes for fire service and they've been building a cash cow that allowed someone to allegedly abscond with 5 MILLION dollars.

What is the annual budget of the department?

How much "reserve" do they need?

What is their financial PLAN?

Do they have a plan?

The taxpayers who paid for all this are understandably upset. Demanding accountability before spending millions more is not unreasonable. The investigation and accounting will not take long at which point they can reassess the needs of the department and plan accordingly.

Makes us all look bad and is a travesty!

I absolutely agree with your comments and they are well worded. This situation is extremely disturbing.

However, what I was trying to say that, in the meantime, the responsibility to protect the citizens and their property by maintaining equipment cannot be interfered with, although it should be done with intense outside oversight.

[Quickness 7]

This was from the original LoHud article. Do they have a separate fire company that handles fundraising and social functions, or is that included in the department?

The brick-faced department headquarters, which was built and opened in 2007, stands at the corner of Route 6 and Croton Falls Road and is the site of its annual carnival over two weeks each July. The town of Carmel, which funded the department with $2 million in property tax revenues in 2015, also rents the department’s upstairs meeting room for $175 a week for its senior citizens recreation program.

The department owes $4 million on tax-exempt bonds used to finance the new firehouse which, published reports said, cost about $6 million, according to its most recent 990 filing with the Internal Revenue Service.

The 2013 report states that the department’s $2.2 million in expenses exceeded revenues by $282,000. The department had $509,000 in savings and temporary cash investments, as well as undisclosed amounts in “financial derivatives” and “closely-held equity interests."

Among the expenses were $382,000 for repairs and maintenance; $237,000 for equipment and gear; $90,000 for insurance, and $831,000 for depreciation, depletion and amortization.

Departmental spending also included $77,000 for parades, $22,000 for its annual installation dinner and inspection events, and $10,000 for college scholarships for the children of members.

Its fundraising efforts brought in gross receipts of $167,000 from the annual fair, and $30,000 for its car raffle, but fundraising costs were $145,000, the report said.

Government support — and department spending - has almost tripled since 2003, additional reports show. But cash on hand has dropped 61 percent — from $1.3 million to $509,000.

[Viper 139]

The office of U.S. Attorney for the Southern District of New York, Preet Bharara, which recently won the conviction of Assembly Speaker Sheldon Silver on corruption charges, has taken over the inquiry into the Mahopac Volunteer Fire Department and its missing millions of dollars in taxpayer funds.

http://www.lohud.com/story/money/personal-finance/taxes/david-mckay-wilson/2015/12/08/us-attorney-takes-over-mahopac-volunteer-fire-dept-probe/76932504/

[SilentShadow 32]

US District Attorney!?!?! Now that's deep!

[JM15 386]

Preet should be busy preparing his indictment for Cuomo!

[Viper 139]

MAHOPAC - As federal investigators continue their probe of the Mahopac Volunteer Fire Department's losses of up to $5 million, financial statements show a $1.4 million spending spree on new equipment from 2012-14 that a top fire official says may not have all gone for purchases.

Audits for the Mahopac Falls Volunteer Department, meanwhile, reveal a flush private department with reserves deposited in government securities that are more than six times its annual spending.

The department had $3.8 million in reserves at the end of 2014. That’s more than six times what it spent in 2014. Those reserves grew by 11 percent — almost $400,000 — from 2012to 2014, as taxpayers gave the district $2.1 million in taxpayer support.

Mahopac Falls President Randy Tompkins said the reserves provide a financial cushion, as well as additional income, to augment the funding the department receives annually from taxpayers. (For future spending on a new firehouse and a ladder truck)

http://www.lohud.com/story/money/personal-finance/taxes/david-mckay-wilson/2016/01/26/mahopac-fd-spending/78810238/

[letsgo1547 50]

Shut them down

[GreatPlains588 131]

Shut them down

Easy to say, but hard to do in NYS.

You might be able force a consolidation vote at most.

[Morningjoe 162]

Shut them down

Now there's a reasonable response to an entire organization because of the acts of one man.

[jd783 64]

I live in Mahopac and did attend the town hall meeting, I found it informative . The meeting was attended by elected officials and Fire dept member and residents of Mahopac. The residents made up about 10% of the crowd. No change is coming to Mahopac in my opinion. This was the good old boys club at its best. I as a mahopac tax payer am annoyed that the dept as a whole has not offered a apology or explanation how this has happened. Its under investigation, cant talk about it. I feel 1 of the chiefs should write a letter to the local paper (Mahopac News) and explain. If I cashed my paycheck and dropped $5 on the way home from the bank I may not notice ,but if I dropped $500 I'm sure I would notice and the rest of my family also wonder where our money went this week. Before everyone forms their opinion of me let me say I am a paid fire officer and I do not believe the volunteer fire system works so my view is 1 sided, I do know several families that have volunteer firefighters in them and I can say they are stand up men and women who want to serve, but lets look into the latest UL fire studies on how todays fires burn hotter and give off more BTU's early in development and reach flashover quicker. I work in a large dept and we are in the firehouse waiting for a structure fire to come in and we still lose buildings and people. What are you really saving in a rural community with the reflex time it takes to get a piece of apparatuson scene with the needed manpower to start a fire attack. I know whats needed thank god most residents don't

[letsgo1547 50]

I agree jd783,I find it hard to believe nobody in that department didn't notice. The days of the good old boys club is gone, shut them down

[fire2141 33]

I live in Mahopac and did attend the town hall meeting, I found it informative . The meeting was attended by elected officials and Fire dept member and residents of Mahopac. The residents made up about 10% of the crowd. No change is coming to Mahopac in my opinion. This was the good old boys club at its best. I as a mahopac tax payer am annoyed that the dept as a whole has not offered a apology or explanation how this has happened. Its under investigation, cant talk about it. I feel 1 of the chiefs should write a letter to the local paper (Mahopac News) and explain. If I cashed my paycheck and dropped $5 on the way home from the bank I may not notice ,but if I dropped $500 I'm sure I would notice and the rest of my family also wonder where our money went this week. Before everyone forms their opinion of me let me say I am a paid fire officer and I do not believe the volunteer fire system works so my view is 1 sided, I do know several families that have volunteer firefighters in them and I can say they are stand up men and women who want to serve, but lets look into the latest UL fire studies on how todays fires burn hotter and give off more BTU's early in development and reach flashover quicker. I work in a large dept and we are in the firehouse waiting for a structure fire to come in and we still lose buildings and people. What are you really saving in a rural community with the reflex time it takes to get a piece of apparatuson scene with the needed manpower to start a fire attack. I know whats needed thank god most residents don't

I've been on both sides of the volunteer/paid argument having served as a firefighter in the military and as a volley for many years. With that being said I'm not biased one way or the other. The fire service in this country was built on the backs of men who volunteered for their communities. Is it perfect, no. The paid fire service from what I've read of late is also far from perfect. There have been many discussions on here about lack of manpower and over utilization of mutual aid, shoddy equipment and other caveats. Additionally studies of fires burning hotter is of equal consequence to both paid and volunteer. The point of this discussion was originally about misappropriated funds and the FD's apparently bloated budget. Can you imagine how large the budget would be with a paid compliment? Last I looked, Mahopac wasn't loaded with foundations. There has been many houses saved in your community. My question to you is, if you know what's so direly lacking and have a wife and possibly children, then why are you endangering yourself and family by living there?

[201/65 94]

Easy to say, but hard to do in NYS.

You might be able force a consolidation vote at most.

Regardless of my opinion on the initial comment, your response it incorrect. This is a fire protection district, it would take a simple majority vote during a town board meeting to cancel Mahopac's contract (they appear to be in violation) and re distribute the monies and coverage area to the other departments already in town. If it were a fire district then it would become nearly impossible to shut them down and/or consolidate the operation.

[EMSLt 27]

http://www.lohud.com/story/news/crime/2016/06/15/mahopac-fire-michael-klein-arrest/85931710/