A 47-year-old Frackville man charged Tuesday with stealing more than $45,000 from the Frackville American Legion Post 398 had served as its treasurer-steward last year.
Sean D. McCormack, 47, of 563 S. Garfield Ave., was arraigned on felony charges of theft, receiving stolen property and failure to make required disposition of funds, as well as a misdemeanor count of tampering with records or identification.
He was arraigned by Magisterial District Judge Christina E. Hale, Frackville, who set unsecured bail at $15,000. Frackville police Sgt. Marvin Livergood arrested McCormack in connection with incidents at the post, 40 S. Mahanoy Ave., between Jan. 1 and Oct. 31, 2012.
Livergood said the theft came to light in June when the post's Home Association contacted police about bank statements and deposits. Livergood said that comparing bank statements showed that money was not deposited or accounted for, and the post's accountant, Patton and Littich, was contacted. Accountant Norman Littich identified discrepancies in the bar sales and small games of chance deposits.
Livergood said the paperwork turned over by the legion included receipts for small games of chance items purchased including 22 boxes from Kelly Line Inc. at a cost of $1,859.90 and 33 boxes of various games from Total Amusements at a cost of $3,280.70.
Those tickets should have given the post a net profit of $64,563, the officer said.
Based on the paperwork, Livergood said the accountant determined that $45,006.92 was not deposited between the checking and savings accounts if all of the various games of chance were sold.
Livergood said legion officials contacted Patton and Lettich in December of 2012 since they believed the documents were forwarded to the firm but were told the accounting firm did not have them.
Livergood said the investigation determined McCormack terminated all of the employees and in September of 2012, changed all locks and denied access to everyone. A witness reported seeing McCormack removing boxes and bags from a rear storage area to which he was the only person with a key, Livergood said.
Livergood said McCormack was sent a letter requesting he return pull tab and punch board game records, annual operating records, weekly records, 50-50 drawing operating week records, regular and special raffles, 50-50 drawings and records of prizes exceeding $100.
Also requested were register receipts for a three-year period and records indicating both 30 percent of proceeds and 70 percent of proceeds.
Livergood said that during the times in question, McCormack was responsible for all deposits of funds and issuing checks for bill payments. He added that McCormack never returned the requested paperwork, record books or ledgers or keys to the building.
Post President Joseph Katilas told police that he filled in for McCormack on one occasion and that McCormack had a paycheck from the American Legion for either $200 or $250. Katilas said McCormack reached into a money bag and handed him $100.
Katilas said that when he questioned McCormack about the $100 the man said that he (Katilas) "did his job," Livergood said.
Filling in for McCormack on another occasion, Livergood said Katilas said he emptied the ticket/stamp machine of about $2,200 and placed the money in a safe. The money was then recorded in a book that went missing and was never located to verify the entry.
Livergood, in questioning McCormack's paycheck, spoke to legion officials said there is only one paid officer position and it was not McCormack's.
He said Katilas also reported asking McCormack to go to the state Wine and Spirits store in Shenandoah to purchase a full order of assorted liquor and spirits for the post home.
Livergood said when legion members were allowed to access the building, there were no alcoholic beverages or any of the records or items relating to Small Games of Chance.
"The place was cleaned out," Livergood said.
McCormack will now have to answer to the charges against him at a preliminary hearing before Hale at 11:45 a.m. Jan. 8.
If convicted of all four charges, Hale said McCormack faces a maximum of 26 years in prison and fines of $55,000.