Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 22, 1995 TAG: 9507240062
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: KIMBERLY N. MARTIN STAFF WRITER
DATELINE: LENGTH: Long
"I acknowledge utilizing funds for squad operations for personal benefit," the 23-year rescue squad veteran said at a morning news conference. "Currently, the Salem Circuit Court Grand Jury is considering multiple criminal charges. ... I expect a return of true bills."
The grand jury did, in fact, indict the former councilman on six felony counts of embezzlement for acts that occurred from January 1992 to December 1994.
State police and special prosecutor David Grimes are still determining the total amount he took. Lautenschlager already has repaid the squad more than $5,000, and he owes in excess of $10,000, Gregory said.
Friday's charges come five months after state police began investigating Lautenschlager in connection with discrepancies found in a squad account.
"We're just glad everything is finally proceeding. We've been waiting for this all summer," said Eddie Hite, captain of the squad.
Details of the embezzlement have not yet been explained. The state police investigation focused on the rescue squad's Wiley Fund. Lautenschlager was on the board that oversees the account, which was established in 1986 in memory of paramedic David Wiley. There was about $20,000 in the account when it started.
However, Carey Harveycutter, another board member, said Friday that Lautenschlager deposited other squad income in the account. Members of the board thought the account was dormant, but, when they looked at the books earlier this year, they realized money was going in and coming out on a regular basis.
Before the state police investigation began, Lautenschlager - the only board member authorized by the bank to withdraw money from the account - said he used the money for training supplies and materials and replaced it with fees from classes he was teaching. It was money "he was entitled to," Gregory said. But sometimes it wasn't.
Lautenschlager, the 1994 Governor's Award recipient for Outstanding EMS Administrator, said financial difficulties led him to begin stealing. Lax bookkeeping and fiscal accountability made it easier, he said.
"I would like to have the opportunity to educate some of the squads," Lautenschlager said. Theft "can happen. The temptation is there."
Confessing his crime is something he has considered before. "There were a number of instances in which I wanted to go public and tell the members. I guess I didn't have the strength. I prayed innumerable times for the strength," he said.
State police also investigated questions raised by Lautenschlager's former employer, Western Virginia Emergency Medical Services Council, but no indictments were sought in connection with the misuse of any money there.
David Laurrell, treasurer of the board that oversees the council, said those questions involved the use of a company American Express charge card.
There were times when the EMS Council card was used for Salem Rescue Squad activities, and in other cases it was used for Lautenschlager's personal expenses, Laurrell said. However, all of the purchases - several of which were in the thousands of dollars - were repaid, Laurrell said.
One source, who spoke only if not named, said one of those purchases involved a timeshare in Williamsburg. Laurrell did not deny that.
"We operate on public funds," Laurrell said of the council, which helps rescue squads seek resources for training. And if someone "were a trustee of public funds, and if you use your position to benefit you personally, then that is inappropriate. Whether it is criminal or not is another issue."
The state police investigator and Grimes decided that, in the case of the EMS Council, it wasn't.
However, Lautenschlager still resigned his position as executive director a few weeks ago.
His resignation from City Council comes a little more than a year after he was elected to office in a ticket-leading victory. He promised change for a council that had not had a new member in 10 years.
"It's a sad day for Salem and his supporters. In his defense, he's been a good council member," said City Councilman Sonny Tarpley.
"I am deeply grieved to know I have hurt my family, friends, and many who have supported me," Lautenschlager said.
It is the second time in 20 years that a Salem City Council member has been indicted for embezzlement.
In 1975, Eddie Joyce was convicted of stealing more than $3,000 from the Roanoke County school system, where he was employed. Joyce, unlike Lautenschlager, did not resign until after he was convicted.
Tarpley was on council then, too: "It was an uncomfortable situation," Vice Mayor Tarpley said. "I felt like we were making city decisions one short because citizens had lost confidence in him."
As for Lautenschlager's decision to step down, "I don't admire anything that he's done, but I think he's done the right thing as far as the city of Salem is concerned," Tarpley said.
Tarpley said he already has a nominee for Lautenschlager's seat, but he would not disclose who it is. Council members have 30 days to appoint someone to fulfill the nearly three years that remain of Lautenschlager's four-year term.
"I'm going to hold my head high in this community. I hope the people will forgive me," Lautenschlager said, dabbing at a steady flow of tears. "I'm part of the Salem community, and that means a lot to me."
Lautenschlager was fingerprinted and photographed Friday, then released on a $15,000 personal recognizance bond. Gregory said his client will plead guilty.
Memo: ***CORRECTION***