Former Hope fire treasurer named in corruption investigation

The U.S. Attorney's Office in Indianapolis announced a new initiative against public corruption Thursday, including federal prosecution for the former treasurer of the Hope Volunteer Fire Department.

At a press conference in Indianapolis, five federal prosecutions were highlighted by the U.S. Attorney's Office including the case against Mathew Mathis. Mathis, 47, served as the treasurer of the Hope Volunteer Fire Department allegedly stole more than $48,000 from the fire department.

RTV 6 TV in Indianapolis is also reporting that a grand jury has filed a six-count indictment against Mathis on wire fraud charges. That indictment came earlier this month, the station reports. 

On Thursday, the federal prosecutor announced a partnership called Operation Public Accountability -- a partnership between the State Board of Accounts, the FBI, Indiana State Police, county sheriffs, the U.S. Attorney’s Office, and state and local prosecutors. U.S. Attorney Josh Minkler announced that the task force would be seeking repayment by civilly charging the individuals in the highlighted cases. 

“Public officials work for the people not the other way around,” said Minkler. “When the trust we give them is shattered and public officials line their pockets with taxpayer dollars, they should expect the scrutiny of state and federal law enforcement. All citizens deserve better from their public officials and this office intends to hold them accountable.”

According to the audit report by the State Board of Accounts, Mathis made $31,905 in undocumented cash withdrawals that were not recorded in the check register or other ledgers. Of those, 23 were made by issuing checks payable to "Cash" and 21 were withdrawn from savings using withdrawal slips. 

Further, Mathis is accused of making out five checks to himself without supporting documentation for $2,600. The report noted discrepancies including cashing a non-numbered counter check, two checks for clothing allowances that had already been paid and a check made out to "Cash."

The audit also accused Mathis of not depositing fundraiser proceeds including $7,081 from a 2015 fish fry and not re-depositing $1,800 that was taken out of the bank to use as a change fund for the fundraiser.

The state requested Mathis reimburse the auditors for the cost of the investigation, which amounted to $4,611 and charged Mathis for $255 in penalties, interest and service charges. 

The audit covered the period from Jan. 1, 2015 to July 27, 2016 and was released by the State Board of Accounts in December 2017. Ultimately, the audit found that the fire department lacked proper internal controls.

"Mathis, as Treasurer, was responsible for all aspects of Fire Department financial activity. This included preparing checks, depositing receipts, recording financial transactions, and reconciling the bank accounts. There was no required oversight of Fire Department activity on an ongoing basis by another individual nor separation of duties between individuals. Due to this lack of monitoring and segregation of duties, checks issued without supporting documentation, undocumented cash withdrawals, failure to deposit the cash change fund, failure to deposit fundraiser proceeds, and payment of penalties and service charges, were able to occur and not be identified timely."

Indiana State Police Superintendent Doug Carter said he appreciated the way Minkler was moving forward with the prosecution.

“To say the least, it’s disheartening when public officials violate the public trust, which is why it is important for the public to know that the FBI, along with the State Board of Accounts and state police detectives worked together building prosecutable cases to hold these public officials accountable for their alleged criminal acts,” Carter said.

Of the five federal prosecutions, a second Bartholomew County case was highlighted, against Clint Madden, the former Wayne Township Trustee and treasurer of the Jonesville Volunteer Fire Department. He allegedly made off with $100,000 from the two offices.

The announcement also highlighted 10 people in state prosecutions which included another Bartholomew County case. David Buzzard, 50, served as the trustee for the Rock Creek Township Trustee in Bartholomew County. He allegedly overpaid himself and his spouse approximately $27,000. This case is pending in Bartholomew County with a special prosecutor.