Embezzling Money to Pay Child Support
Thursday / May 13, 2010
Another crime relating to child support - a trusted employee embezzled $775,000 over eight years. Where were the auditors?
From phyllyBurbs.com:
Official charged with $775K theft
Police arrested William T. Barnes, who was director of finances and administration at the Valley Forge Convention and Visitors Bureau from 1996 until his retirement in 2009.
Montgomery County authorities Wednesday accused the former finance director of the county tourism bureau of embezzling $775,509 from the agency over an eight-year period, saying he used the money to pay spousal and child support.
"Once he found he could be successful, he just dove right in and began cooking the books," said District Attorney Risa Vetri Ferman.
She was referring to William T. Barnes, who was employed as the director of finances and administration at the Valley Forge Convention and Visitors Bureau from January 1996 until his retirement in February 2009.
Barnes, 71, of West Norriton, was arrested Wednesday and then arraigned before District Judge James Gallagher on charges of theft, forgery and related offenses. He was taken to the Montgomery County Prison after he was unable to post $10,000 bail. His preliminary hearing is scheduled for May 20.
"Mr. Barnes was a trusted employee of the bureau for 13 years," said bureau President Paul Decker. "We were stunned, disappointed and betrayed upon learning of his alleged criminal actions."
The alleged theft of funds was uncovered in December when, after Barnes retired, the bureau hired an outside firm to perform the agency's accounting chores and audits.
An investigation revealed that Barnes wrote 293 unauthorized checks to himself while using signature stamps from other members of the agency required to sign the checks.
In 2002, Barnes wrote himself eight checks totaling $17,750. The alleged thefts escalated in the following years including: 2003, 43 checks for $82,166; 2004, 50 checks for $123,948; 2005, 53 checks for $141,861; 2006, 52 checks for $165,982; 2007, 46 checks for $130,298; 2008, 40 checks for $110,004; and, 2009, one check for $3,500.
Barnes would use the computer and alter bank statements to cover his financial tracks, according to Ferman.
Barnes this March confessed to county detectives that he had stolen more than $750,000 from the bureau, according to the criminal complaint.
Most of the money went to paying spousal support, child support and college tuition for his third wife and two children in Maryland, according to the complaint. Barnes told detectives his former wife was quick to haul him into court anytime he fell behind in his payments, the complaint said.
Barnes told detectives he had spent all the money and has no savings, according to the complaint. The only thing of value that he has, Barnes told detectives, is a Rolls Royce he was restoring.
The tourism bureau declined to release information on Barnes' salary.
The Valley Forge Convention and Visitors Bureau was a county agency up until 1999 when the commissioners agreed to allow it to become a nonprofit organization. However, the county commissioners still appoint the bureau's 12 board members and set the hotel room occupancy tax rate in accordance with state law. Also, the county treasurer's office collects the so-called "bed tax," turning those funds over to the bureau for its operating budget.
The 2 percent bed tax is levied against all hotel, motel and inn room rentals. There are 61 such facilities in the county for a combined 7,525 rooms.
The county last year collected $2.86 million in bed tax revenue, according to county Deputy Treasurer Ava M. Tuturice. Other than the $27,000 kept for administrative costs, all of the revenue was turned over to the tourism bureau, said Tuturice.
Decker said the bureau also receives revenue from the state and membership dues.
The agency this year has an operating budget of $3.4 million. The room occupancy tax provides 86 percent of the revenue for this budget, according to bureau officials.
The newspaper could not reach county Controller Diane Morgan to learn whether her office has any audit responsibility over the occupancy tax revenue.
Margaret Gibbons can be reached at 610-279-6153 or mgibbons@phillyBurbs.com
Official charged with $775K theft
Police arrested William T. Barnes, who was director of finances and administration at the Valley Forge Convention and Visitors Bureau from 1996 until his retirement in 2009.
Montgomery County authorities Wednesday accused the former finance director of the county tourism bureau of embezzling $775,509 from the agency over an eight-year period, saying he used the money to pay spousal and child support.
"Once he found he could be successful, he just dove right in and began cooking the books," said District Attorney Risa Vetri Ferman.
She was referring to William T. Barnes, who was employed as the director of finances and administration at the Valley Forge Convention and Visitors Bureau from January 1996 until his retirement in February 2009.
Barnes, 71, of West Norriton, was arrested Wednesday and then arraigned before District Judge James Gallagher on charges of theft, forgery and related offenses. He was taken to the Montgomery County Prison after he was unable to post $10,000 bail. His preliminary hearing is scheduled for May 20.
"Mr. Barnes was a trusted employee of the bureau for 13 years," said bureau President Paul Decker. "We were stunned, disappointed and betrayed upon learning of his alleged criminal actions."
The alleged theft of funds was uncovered in December when, after Barnes retired, the bureau hired an outside firm to perform the agency's accounting chores and audits.
An investigation revealed that Barnes wrote 293 unauthorized checks to himself while using signature stamps from other members of the agency required to sign the checks.
In 2002, Barnes wrote himself eight checks totaling $17,750. The alleged thefts escalated in the following years including: 2003, 43 checks for $82,166; 2004, 50 checks for $123,948; 2005, 53 checks for $141,861; 2006, 52 checks for $165,982; 2007, 46 checks for $130,298; 2008, 40 checks for $110,004; and, 2009, one check for $3,500.
Barnes would use the computer and alter bank statements to cover his financial tracks, according to Ferman.
Barnes this March confessed to county detectives that he had stolen more than $750,000 from the bureau, according to the criminal complaint.
Most of the money went to paying spousal support, child support and college tuition for his third wife and two children in Maryland, according to the complaint. Barnes told detectives his former wife was quick to haul him into court anytime he fell behind in his payments, the complaint said.
Barnes told detectives he had spent all the money and has no savings, according to the complaint. The only thing of value that he has, Barnes told detectives, is a Rolls Royce he was restoring.
The tourism bureau declined to release information on Barnes' salary.
The Valley Forge Convention and Visitors Bureau was a county agency up until 1999 when the commissioners agreed to allow it to become a nonprofit organization. However, the county commissioners still appoint the bureau's 12 board members and set the hotel room occupancy tax rate in accordance with state law. Also, the county treasurer's office collects the so-called "bed tax," turning those funds over to the bureau for its operating budget.
The 2 percent bed tax is levied against all hotel, motel and inn room rentals. There are 61 such facilities in the county for a combined 7,525 rooms.
The county last year collected $2.86 million in bed tax revenue, according to county Deputy Treasurer Ava M. Tuturice. Other than the $27,000 kept for administrative costs, all of the revenue was turned over to the tourism bureau, said Tuturice.
Decker said the bureau also receives revenue from the state and membership dues.
The agency this year has an operating budget of $3.4 million. The room occupancy tax provides 86 percent of the revenue for this budget, according to bureau officials.
The newspaper could not reach county Controller Diane Morgan to learn whether her office has any audit responsibility over the occupancy tax revenue.
Margaret Gibbons can be reached at 610-279-6153 or mgibbons@phillyBurbs.com