Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 18, 1995 TAG: 9502200048
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: KIMBERLY N. MARTIN STAFF WRITER
DATELINE: LENGTH: Medium
The indictments follow a state police investigation into the squad's Good Neighbor Fund.
State police found five questionable checks signed by Houff, according to the indictments. Two were made out to him - one for $1,000 and the other for $600. Two were to Harris Teeter and one was to O'Brien Meats. The checks were written between June and October.
The fund in question was set up as a two-signature account. As chief, Houff could sign checks but he needed a co-signer. The indictments charge that Houff forged the signature of last year's treasurer, Ken McCauley, on the five checks.
Houff faces five counts of forgery, five counts of uttering - that is, passing a forged check - and one count of embezzlement.
The Good Neighbor Fund was created last year to help needy people. The squad has given a couple of awards to help people pay for medical expenses, rescue squad Chief John Beach said. He would not comment on how much money is in the fund.
State police got involved when an internal audit uncovered irregularities in the account. Houff resigned as chief before that investigation began and no longer is a member of the squad. Beach would not say whether Houff left voluntarily.
"We take our sense of public accountability very deeply. That's why we requested outside assistance from the state police to look into this matter," Beach said.
If convicted of the felony charges, Houff could receive a 120-year sentence. However, cases like Houff's often result in suspended sentences, Commonwealth's Attorney Fred King said.
"He's been a member of the rescue squad for a number of years and has given to this community, but that doesn't shield him or make these things go away," King said.
Houff had not been arrested Friday. Once he is, King said that he anticipates Houff would be released on a personal recognizance bond and be arraigned next month.
Houff, who was chief for about a year and a squad member for more than six years, could not be reached for comment.
"The mood down here is not upbeat. We're saddened down here. They're no joy in what's going on," Beach said.
In addition to the Good Neighbor Fund probe, state police this week began investigating Salem City Councilman Garry Lautenschlager after receiving approval from the state attorney general.
Lautenschlager, a 23-year member of the squad, has acknowledged writing checks drawn on the squad's Wiley Fund for textbooks and training supplies. He has said he reimbursed the account with fees from classes. But the attorney for the board that oversees the Wiley Fund says about $2,000 is unaccounted for.
Lautenschlager was suspended from the squad this week pending the outcome of an internal investigation.
State law requires that the attorney general, a grand jury or the governor approve any state police investigation of an elected official. King has disqualified himself and asked Pittsylvania County Commonwealth's Attorney David Grimes to handle the case.
"The public needs to rest assured that there's no home cooking or local referee involved here," King said.
The board that oversees the Wiley Fund has been discussing dissolving it, said Furman Whitescarver Jr., the board's attorney.
"Once this is over and we can see what's there and if we're entitled to any reimbursements, then we may decide it's one account we no longer need," Whitescarver said.
Beach said the crew is considering an amendment to its constitution requiring annual external audits.
Permission to move forward with the investigation took longer than many anticipated, said Furman Whitescarver Jr., the Wiley Fund's lawyer. State police requested permission to begin their investigation several weeks ago.
"I'm glad that they're finally going to do an investigation. We need to clear the air and get this behind us," Whitescarver said.
by CNB