State police investigating misappropriation of nearly $100K from Freeport EMS

State police are investigating a case involving the alleged misappropriation of close to $100,000 of Freeport EMS’ funds.

Trooper Anthony Vaccaro of the Kittanning station said he received numerous documents from the ambulance service but could not get into details of what police are looking for or who may have mishandled the money.

“It’s an open, active investigation,” Vaccaro said Friday. “We have all the documents we can forensically look into. That stuff deals with a lot of numbers, big numbers, and it’s going to take a while.”

A letter delivered in early December to the Trib’s Valley News Dispatch office by Freeport EMS Executive Director Chris O’Leath says the case centers around Councilman Justin DeAngelis. The letter, written on Freeport EMS letterhead and signed by O’Leath, accuses DeAngelis of stealing, and subsequently repaying, nearly $98,000 from the ambulance service.

Repeated attempts to reach DeAngelis, including knocking on a door at a home listed as his address, were unsuccessful. Borough officials declined to release any contact information for the councilman.

In addition to his official council post, DeAngelis served as treasurer for the private, nonprofit ambulance service, as well as the separate Freeport Fire Department, from 2016 to May 2020.

“During that time, no other officer had electronic access to the financial accounts or records of Freeport EMS,” O’Leath wrote.

O’Leath said he was given access to the accounts in May 2020, as executive director, and “immediately noticed discrepancies on the bookkeeping.”

An internal audit was done in which, according to O’Leath, officials discovered 62 unauthorized transactions totaling $97,808.77 between January 2017 and May 2020.

“Through his legal counsel, Mr. DeAngelis agreed to immediately resign and make full restitution for those funds and did do in full by September 2020,” the letter reads. “In consideration for a full and expedited restitution, the Freeport EMS board of directors and I agreed not to pursue criminal charges.”

DeAngelis also resigned from the fire department around the same time.

Trooper Vaccaro said an agreement between anyone who stole money and the ambulance service may not matter when it comes to criminal charges.

“Even if all the money allegedly did get paid back, it still wouldn’t matter, because a crime was still committed,” Vaccaro said.

The trooper said no charges have been filed yet.

O’Leath: No impact on operations

O’Leath said via phone interview with the Tribune-Review earlier this month that the misappropriated funds had no impact on day-to-day operations.

Multiple checks and balances have been put in place since the accounting discovery, he said, including more people having access to accounts and more steps to follow before money is moved.

An independent accountant also reviews the books about twice a month.

O’Leath said it costs more than $1 million a year to run the ambulance service. He said it has a staff of 27 and averages about 2,000 calls per year.

Freeport EMS survives largely on what it can get from insurance companies, customers, donations and its annual subscription drive.

Subscriptions cost $60 for individuals and $100 for families. That helps offset the cost of ambulance trips and other services.

The ambulance service serves Freeport, South Buffalo and half of Buffalo Township, as well as parts of Winfield.

O’Leath said he wanted to clear up any rumors about tax dollars being taken.

“We are not publicly funded,” he said. “We get no dollars from any municipality that we service. It was an issue that was handled. It was discovered. It was repaid.”

O’Leath declined to disclose how the funds were repaid.

He said that was handled through attorney Rich Bosco. Multiple attempts to reach Bosco were unsuccessful.

Solicitor “sets record straight”

Freeport Solicitor Matthew Kalina issued a letter in mid-November to “set the record straight,” and let people know the EMS, fire department and borough are all independent entities and manage separate accounts. He said at no point were borough funds, fire department monies or state and federal grant funds missing.

He did say, in his undated letter under his law firm’s letterhead, that Freeport EMS officials “did uncover misappropriated funds of the EMS.”

Kalina’s letter does not mention who is accused of the misappropriation, but says the person paid back the money and “was removed and banned from office and membership.”

He also addressed the agreement the ambulance company made to get the funds repaid.

“When something is taken from you, suggesting that you will not pursue charges is a common and effective means of achieving the most important goal when this occurs,” Kalina wrote. “The property being returned and the person or group that the money or item was taken from being made whole. The funds were returned in a timely fashion, to the penny, and thus no charges were filed.”

Calls to Kalina’s office Friday were not returned.

Freeport Mayor James Swartz Jr. said he learned about the deal about a month after it was made. He said he did not agree with it, and O’Leath verified that.

DeAngelis remains on council

As far as DeAngelis remaining on council, Swartz said, “I don’t think he should be, but that’s not for me to decide.”

Council President Clint Warnick said he spoke with his colleagues about the issue.

“The majority of council preferred him to resign, and he elected not to,” Warnick said Friday night. “I, as council president, am disappointed in the fact that he decided to stay on council.”

Warnick declined further comment about DeAngelis’ alleged actions with the ambulance service.

Council’s next meeting is 7 p.m. Monday at the borough building, 414 Market St.

O’Leath said Freeport EMS did not contact Armstrong County District Attorney Katie Charlton’s office about the matter.

Multiple messages at Charlton’s office were not returned.

Kalina said in his letter “both local and state police were informed of this situation.”