From the Office of the New York State Comptroller
Thomas P. DiNapoli
Contact: Brian Butry,518-474-4015
For release: Immediately, October 12, 2012
DiNAPOLI: TREASURER STOLE $200,000 FROMWOODSTOCK FIRE COMPANYCharged by Ulster County District Attorney Carnright
The former treasurer of Woodstock Fire Company No. 3 embezzled more than $200,000 over a five year period, according to an audit released today by State Comptroller Thomas P. DiNapoli. As a result, Dale
D. Hughes, Jr., 64, was arrested and charged by Ulster County District Attorney D. Holley Carnright withgrand larceny in the second degree. Hughes was arraigned before Woodstock Town Court JusticeRichard Husted and remanded to the Ulster County Jail in lieu of bail.
The audit and investigation by DiNapoli’s office revealed that Hughes endorsed 83 checks totaling
$200,385 that were made payable to cash. Auditors estimate the former treasurer pocketed an additional$21,000 in cash proceeds from various pancake breakfast fundraisers.
“The fire company handed the fiscal reins to this individual and he responded by fleecing the public,” said
. “The lack of basic financial oversight allowed this fraud to continue unabated for five years. It is
imperative for company officials to put systems in place to protect public dollars and prevent future abuse.I want to thank Ulster County District Attorney Carnright and his staff for their diligent work in ensuring this
wrongdoer was held accountable.”“This is yet another example of good government at work,” said Carnright. “If Comptroller DiNapoli’s staff
had not been available to conduct this audit, it would have cost the taxpayers of Ulster County thousands
of dollars to hire a forensic accounting firm. Their efforts were vital to my office’s criminal investigation.”
Hughes served as the fire company’s treasurer from 1997 to 2011. The company, loc
ated in the Town of Woodstock in Ulster County, elected a new treasurer in 2012. Hughes currently serves as company vicepresident.
During the audit and investigation, DiNapoli’s staff found Hughes routinely failed to provide monthly
written reports of d
isbursements to the fire company’s executive committee and that company expenses
were approved for payment by the committee without reviewing available invoices.
Investigators traced much of the stolen money to Hughes’s personal bank accounts.
were requested by DiNapoli’s staff, Hughes altered bank and vendor records in an effort to conceal his
theft. Hughes cashed $12,975 worth of checks in 2006; $61,565 in 2007; $32,130 in 2008; $66,500 in2009; $16,565 in 2010; and $10.650 in 2011, according to the audit.
The fire company’s executive committee –
which consists of the company president, vice president,treasurer, secretary, chief officers, and three directors
was unaware of the fraud until May 2011 when a