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Former Fire Department Treasurer Pleads Guilty to $5.6 Million Embezzlement Scheme
Michael Klein, 48, of Mahopac, New York, and Palm City, Florida, pleaded guilty to charges related to his embezzlement of $5.6 million from the Mahopac Volunteer Fire Department.
Klein, who was the treasurer of the fire department from 2001 to 2015, used his position to write checks to his own businesses, Abbie Graphic Services, Ltd. and Buckshollow Emergency Equipment Corp. He then deposited the checks into bank accounts held by his businesses and lied to the fire department about the purpose of the payments.
Klein used the embezzled funds to purchase a yacht, a Florida home, jewelry, and an antique fire truck, among other things. He also failed to report most of the income on his personal tax returns for the period from 2009 through 2014, subscribing to false tax returns for each of those years.
Following law enforcement’s discovery of Klein’s embezzlement in September 2015, he obstructed the grand jury’s investigation by making false statements about his finances and concealing and dissipating assets.
Klein pleaded guilty to one count of wire fraud, six counts of subscribing to false tax returns, one count of obstructing the grand jury’s investigation, and one count of making false statements to the United States Attorney.
Klein faces a maximum sentence of 20 years in prison for the wire fraud and obstructing the grand jury’s investigation charges, and a maximum sentence of three years in prison for each of the six subscribing to false tax returns charges. He also agreed to forfeit $5,675,360.49, his residence in Palm City, Florida, his equity in his yacht club in Palm City, Florida, cash held in various bank accounts, a 1931 American LaFrance antique fire engine, proceeds of a life insurance policy, and a 2000 13′ Nautica vessel with trailer.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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