Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, February 3, 1995 TAG: 9502030090
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: JAN VERTEFEUILLE STAFF WRITER
DATELINE: LENGTH: Medium
"Irregularities" were discovered in the Wiley Fund, according to one of the fund's board members.
City Councilman Garry Lautenschlager resigned from the fund's board after turning over the books to state police.
"I turned over all the records I had," Lautenschlager said Thursday.
He said he felt he should resign, although he's confident no problems will be found with the fund.
"I was in control of the account for the last several years - I was a signature to the account," he said, adding that others had the same access to it.
Lautenschlager said he was the one contacted by the bank late last year about problems with the Good Neighbor Fund. He then talked to the rescue squad's treasurer and that led to the original state police investigation.
The rescue squad's attorney, Jim Swanson, said last month that state police were called in after a monthlong in-house investigation simply to avoid the appearance of a cover-up.
Rescue Squad Chief Ray Houff Jr. resigned the week before state police began their investigation Jan. 17. Reached Thursday evening at the Salem Fire Department, where he works, Houff said he would have no comment on the advice of his attorney.
State police investigators met with Commonwealth's Attorney Fred King on Thursday and they will continue to gather information for the original investigation. King would not speculate on whether charges might be filed.
With an expansion of the investigation into the Wiley Fund, state police may have to receive authorization from the state Attorney General's Office because of Lautenschlager's position on City Council.
"Because it conceivably involves an elected official, they have to get permission from the attorney general," Swanson said. "As a board member, he's not the target; he's conceivably one of them."
King said he is unaware of any investigation authorized by the Attorney General's Office.
"To my knowledge, at the present time there is not such an investigation," he said.
State law requires that any state police investigation into an elected official be authorized by the governor, the attorney general or a grand jury. Lt. Lee Bradley, head of the state police's criminal investigation unit, would not comment on whether the attorney general's office had been called.
Lautenschlager is the only Wiley Fund board member to resign. He said when he learned the investigation could be expanded to include the Wiley Fund, he apprised city officials and other council members. Lautenschlager has been on the council since last spring, the first new member in 10 years.
He resigned as deputy chief of the rescue squad when he was elected to City Council, but remained on as a volunteer and as a Wiley Fund board member. He remains a volunteer.
He said he is "very much concerned" that the investigation may look bad to the public.
The Wiley Fund is under the auspices of the rescue squad, but the money is administered by board members relatively informally, Swanson said. It's named in memory of David Wiley, an emergency medical technician instructor.
The fund contains less than $20,000, said board member Carey Harveycutter. The principal is to remain untouched, but the board uses the interest to fund scholarships for emergency medical training, speakers and training aids for EMTs.
Pat Counts, assistant fire chief and a Wiley board member, said the board had been talking about having an audit done for a while because of possible questions.
"We really don't know anything," he said. "Some irregularities were found - we don't know whether anything's missing."
"I am confident the investigation is not going to indicate anything," Lautenschlager said. "I don't believe there are irregularities."
He said he hopes the public keeps its faith in the all-volunteer squad. And he said he believes that proper internal controls over the finances are in place.
But the squad's attorney said bookkeeping changes may be made in light of the investigation. In the all-volunteer squad, Swanson said, the position of treasurer was filled by members whose accounting abilities varied.
"It's become apparent," he said, "there needs to be more consistency in how they're maintained."
by CNB