ROANOKE TIMES

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

DATE: FRIDAY, July 21, 1995                   TAG: 9507210064
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO 
SOURCE: KIMBERLY N. MARTIN STAFF WRITER NOTE: Above
DATELINE:                                 LENGTH: Medium


COUNCILMAN EXPECTED TO RESIGN

GARRY LAUTENSCHLAGER, investigated for financial irregularities found in two rescue squad organizations, reportedly will quit Salem City Council

After serving a little more than one year of his four-year-term as a Salem city councilman, Garry Lautenschlager will resign his post today, sources said Thursday.

State police investigated Lautenschlager, a 23-year Salem Rescue Squad veteran, this spring in connection with discrepancies found in a rescue squad account. The investigation was expanded to include Lautenschlager's involvement with the Western Virginia Emergency Medical Services Council.

Two sources who would speak only if not identified said a Salem grand jury that meets today will be asked to indict Lautenschlager on felony charges.

Lautenschlager has scheduled a news conference for 9:30 a.m., a half-hour before the grand jury convenes.

The Wiley Fund, the rescue squad account in question, was set up in 1986 in memory of paramedic David Wiley. It started with about $20,000 to be spent on volunteers' education. A few scholarships were given but board members who oversee the account thought it was dormant.

But when board members scrutinized the books this year, they found that money had been going in and out of the account on a regular basis. At least $2,000 was unaccounted for, the lawyer for the Wiley Fund has said.

Lautenschlager was the only Wiley Fund board member authorized by the bank to sign checks drawn on the account.

The council member was suspended from the rescue squad pending the outcome of an internal investigation.

In April, state police investigating the rescue squad account received authorization from the state attorney general to examine financial records of the Western Virginia EMS Council. Lautenschlager was executive director of the council, which helps rescue squads seek money for training.

An internal audit by the EMS council's board did not reveal that any money was missing but there were questions about the possible misuse of some money.

Lautenschlager resigned as executive director this month. He had been on paid leave from the council since April.

``We advertised to fill the position. His resignation was effective June 30. It was accepted by the full board last Thursday,'' said David Laurrell, treasurer of the council's board.

According to the Salem city code, an indictment alone is not enough to make a councilman resign. A council member must resign only if he or she is convicted of a felony, said Salem City Manager Randy Smith.

If Lautenschlager does resign today, council has 30 days to appoint someone to fill his unexpired term.

It's a job that council has faced before. In 1975, Councilman Eddie Joyce resigned after he was convicted of embezzling school funds. Council appointed Billy C. Shaw to fill his unexpired term.

Lautenschlager did not answer the phone at his house or return messages left on his answering machine. His attorney, John Gregory Jr. , said he would not have any comment until today's news conference.



 by CNB