Former Mid-Sussex treasurer Heather McCabe indicted on theft
A former treasurer of Mid-Sussex Rescue Squad has been indicted on theft charges stemming from a financial statement in 2017 that showed more than $100,000 of misappropriated funds over a five-year period.
On June 4, a grand jury indicted Heather McCabe, 43, of Millsboro on nine counts of theft of greater than $1,500. She pleaded not guilty, said Carl Kanefsky, spokesman for the Attorney General's Office.
A trial is scheduled Monday, Sept. 24, in Sussex County Superior Court.
Following a Freedom of Information Act request filed with the Delaware State Fire Prevention Commission, the Cape Gazette first reported in August 2017 that an annual audit of Mid-Sussex revealed a former member had stolen about $95,000 from 2011 to 2016. Another $10,000 in checks were written out but never cashed.
The audit filed by Mid-Sussex with the Delaware State Fire Prevention Commission in 2017 stated the squad discovered in March 2017 that a previous member had been making cash withdrawals from the company's bank account and using the money for personal purposes. The audit stated the member repaid nearly $95,000; another $10,000 in outstanding checks were voided.
In its exclusive, the Cape Gazette reported, no charges had been filed. “Charges were brought after a thorough investigation and a determination that McCabe's actions met the standard for criminal prosecution,” Kanefsky said.
An investigation by state Auditor Thomas Wagner was underway at the time of the Cape Gazette's breaking story, but his report was not complete until March 28, 2018.
In March, the state audit estimated the former treasurer misappropriated about $120,000 from the squad, and the report was sent to the Department of Justice where it was reviewed by the office of Civil Rights and Public Trust, which determines whether someone's actions meet the standard for criminal prosecution, Kanefsky said.
At the time of misappropriated funds and subsequent audits, Ray Johnson was the squad president, and he remains president. Wagner notes that Ray Johnson and treasurer McCabe were married at the time of the misappropriations. Ray's brother, Joseph Johnson, is now treasurer.
Wagner's audit states the debit card was used for a $400 car payment in Ray Johnson’s name, and the treasurer wrote three checks totaling $5,000 to cash. One $5,000 check for cash was signed by both the treasurer and Ray Johnson, the audit states.
Kanefsky would not say whether anyone else would be indicted in connection with theft at Mid-Sussex. “We're unable to comment further on the investigation,” he said.
Gerald Burbage, a financial advisor with Mid-Sussex, said the state audit uncovered about $8,000 more than what was noted missing in the 2017 audit submitted to the state Fire Prevention Commission, but the squad is not pursuing charges against McCabe. “As far as Mid-Sussex is concerned, we are whole,” he said.
Wagner concluded that the former treasurer repaid about $110,000 to the squad, but took more than $112,000 in cash withdrawals from the squad's bank accounts. Wagner said the treasurer also wrote a $5,000 check payable to the treasurer and made almost $2,000 in debit card transactions.
“Debit card transactions, totaling $1,833, applied to the personal utility accounts of the squad's president and former treasurer who were married at the time,” the audit states.
Two checks each for $1,300 and one for $1,250 were unsupported payments to a former career chief supervisor and EMS chief. Jerry Johnson, Raymond's brother, was the emergency medical services chief before he was charged in May 2017 with groping a part-time employee at the Long Neck station. Jerry Johnson later pleaded no contest to third-degree unlawful sexual contact, and he was given probation before judgement.
