ROANOKE TIMES

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

DATE: FRIDAY, June 23, 1995                   TAG: 9506230069
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO 
SOURCE: KIMBERLY N. MARTIN STAFF WRITER
DATELINE:                                 LENGTH: Medium


RESCUE SQUAD CHIEF SENTENCED

Former Salem Rescue Squad Chief Earl Ray Houff Jr. was sentenced Thursday to 30 days in jail for pilfering about $1,900 from a rescue squad account.

Circuit Judge G.O. Clemens suspended the remainder of a three-year sentence for embezzlement and dropped the additional five counts of uttering - passing a forged check - Houff faced.

Embezzlement "is the substance of the offense," Clemens said. "I don't believe it serves any purpose to convict him of the five uttering" charges, bringing the total to 10 dropped felony indictments against Houff.

Five forgery charges against him were dismissed at his April trial as part of a plea agreement reached with Salem Commonwealth's Attorney Fred King.

The forgery and uttering charges resulted from five checks Houff drew on the squad's Good Neighbor Fund, just months after the squad had established it.

The account was established to provide money to people in the community who cannot pay their medical expenses.

But Houff, 31, used the account's checkbook to write two checks payable to himself - one for $1,000, the other for $600.

Two other checks were made payable to the Harris Teeter grocery chain, which Houff has said he used for squad workers at the Salem Fair.

The remaining check was written to O'Brien's Meats to buy hot dogs and hamburgers for a squad picnic at Olde Salem Days, Houff said at his trial.

But on all of the checks in question, Houff has admitted he signed his name and the name of then-squad treasurer Ken McCauley. The account requires two signatures to withdraw money.

Houff's attorney, Randy Cargill, said Houff has written the squad a check for more than $3,400 in restitution, which covers other checks Houff wrote from the account.

"When the final report was prepared, there was more money taken than these five checks. Although he wasn't charged for those, he agreed through his lawyer that he would accept that amount for the restitution," King said.

"People who have known Ray over the years know this was out of character for him. He spent his adult life helping members of the community," Cargill said.

"He sits before you an embarrassed man. He is a fallible human being, and he made a mistake."

And that mistake changed his life. Cargill argued it cost Houff his membership in the squad and his job as a Salem firefighter. He does not have a full-time job.

City Manager Randy Smith did not confirm nor deny Cargill's assertion.

Smith did say that Houff left the city's employment the day after he pleaded no contest to two counts of uttering and one count of embezzlement.

Salem city policy does not prohibit a convicted felon from being on the city's payroll. Instead, cases are handled on an individual basis, Smith said.

However, it was Houff's emergency medical training license with which Cargill was concerned.

Houff began his emergency medical training at age 15 and was a Salem squad volunteer for more than six years.

According to the state Board of Health guidelines, a convicted felon cannot hold an EMT license for five years after committing a felony.

"He has spent thousands of hours of his free time helping members of the community," Cargill said. "Convict him of a misdemeanor larceny. Allow him to keep his EMT license."

Clemens found him guilty of the felony.

King recommended following sentencing guidelines, which called for no time served.

"The commonwealth is not seeking to set an example with Mr. Houff," King said.

But Clemens was.

"A message should be sent that if you embezzle money from your employer or public funds put in your trust, you should expect" to serve time, Clemens said.

Despite the sentence, chances are Houff won't spend any time behind bars. Clemens delayed imposing the sentence while Houff is screened for doing community service in lieu of jail time and a work release program.

Houff is not the only Salem squad member to be investigated by the state police.

Last month, state police completed an investigation of Salem City Councilman Garry Lautenschlager's involvement with a squad account. The report has not been made public.

The probe was initiated when members of the board that oversees the Wiley Fund learned money was being deposited and withdrawn regularly from the fund.

Board members had thought the account was dormant.

Lautenschlager, a 23-year member of the squad, was the only board member with an authorized signature on the account.

He has said he used the money for textbooks and training supplies, then reimbursed the account with fees from classes.

But the board's lawyer has said at least $2,000 is unaccounted for.



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