ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, April 28, 1995                   TAG: 9504280045
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO  
SOURCE: KIMBERLY N. MARTIN STAFF WRITER
DATELINE:                                 LENGTH: Medium


EX-CHIEF: NO CONTEST TO FORGERY

Earl Ray Houff Jr. had dedicated his entire adult life to saving lives. He began his emergency medical training at age 15 and joined the Salem Rescue Squad six years ago. He also is a Salem firefighter.

Yet, he admitted to a state police investigator that, just months after the rescue squad established its Good Neighbor Fund, he began pilfering from it. The account was designed to provide money to people in the community who cannot pay their medical expenses.

Houff, 31, the former chief of the squad, pleaded no contest in Salem Circuit Court on Thursday to two counts of uttering - passing forged checks - and one felony charge of embezzlement for the period from last June to October. Five other charges were dropped and Houff pleaded not guilty to three additional charges.

The two counts of uttering were for two checks Houff made payable to himself and to which he forged the name of treasurer Ken McCauley, said Salem Commonwealth's Attorney Fred King. One check was for $1,000 and the other was for $600.

A bounced check alerted the squad officials that the account was more active than they had thought, King said.

Squad members wondered, "How could this bounce when we've only authorized one check on this account?" King said.

They confronted Houff and received several different explanations of where the funds went. But when they got photocopies of the checks from the bank, none of Houff's excuses matched what they found, King said, reading from a summary of the evidence.

So, the squad went to the police, who eventually turned over the investigation to the state police because of a potential conflict of interest, King said. Houff, who was chief for about a year, resigned his position when the state police began its inquiry.

In a plea agreement, King agreed to drop the five counts of forgery against Houff.

"We have chosen to treat the two charges as one on these twin offenses," King said.

Houff pleaded not guilty to three counts of uttering for two checks he gave to Harris Teeter and one to O'Brien Meats. The checks were written for a total of about $300.

His attorney, Randy Cargill, argued that despite the fact that Houff forged the treasurer's name on those checks, the money was used for squad purposes.

"He used that money for legitimate squad purposes," Cargill said. "He didn't utter these checks with the intent to defraud."

Houff testified that the checks for Harris Teeter were for food for squad workers at the Salem Fair. And the check to O'Brien's Meats was used for hot dogs and hamburgers for a squad picnic at Olde Salem Days.

When asked in court Thursday why he didn't get the treasurer's signature, Houff replied, "I don't know." But regardless of its use, King said Houff "knew the check was a forged document."

Judge G.O. Clemens found that there was enough evidence to find Houff guilty on the five counts of uttering and the one of embezzlement. He took the matter under advisement until a June 22 sentencing hearing.

Houff could face up to 70 years in jail, but King said a suspended sentence is more likely.

"He admitted what he did. He stands before you in a very real sense a broken man. ... He made a mistake, and he wants to put this behind him," Cargill said.


Memo: ***CORRECTION***

by CNB