Former Fire Chief Stole More Than $300K From CFD: DA

CROTON-ON-HUDSON, NY — Gerald Munson, a former chief of the Croton Fire Department who also served as its treasurer, is accused of stealing more than $300,000 from the department over many years.

Westchester County District Attorney Anthony A. Scarpino, Jr. and the Village of Croton-on-Hudson Police Department announced his surrender and arrest Wednesday. He was arraigned this morning in Croton-on-Hudson Village Court before Justice Sam Watkins.

Munson, a former village police officer, was released on his own recognizance and paid $25,000 toward restitution.

Munson is charged with Grand Larceny in the Second Degree as a Crime of Public Corruption, a class B felony, and Grand Larceny in the Second Degree, a class C felony.

According to the DA, as treasurer, Munson was responsible for maintaining the Fire Department’s bank account and financial records. He had no prior qualifications or background in accounting or financial matters.

The felony complaint alleges that he used his position as treasurer for the Croton-On-Hudson Fire Department to steal and conceal his theft of about $312,925 from the Fire Department.

The money he stole included portions of the so-called “2 Percent Money” paid annually to the Fire Department by New York State in connection with the State’s 2 percent tax on fire insurance.

For years, Munson was able to conceal his ongoing theft by altering and manipulating the Department’s bank records, the DA alleged. Those alterations and manipulations included under-reporting the amount of “2 Percent Money” received by the department in order to balance the books and hide what he stole for himself.

In February 2018, members of the Fire Department’s internal Audit Committee discovered that Munson had provided them with false 2017 bank statements.

When confronted by the Audit Committee, Munson admitted he had created the false statements on his home computer; that he had stolen money from the Department’s account for his own personal use; and that he had used the Fire Department’s debit card as if it were his own, according to the DA.

Further investigation and analysiswas conducted jointly by the Village of Croton-on Hudson Police Department, the Westchester County District Attorney’s Office and the New York State Comptroller’s Office.

“When the allegations regarding the alleged misappropriation of Croton-on-Hudson Volunteer Fire Department funds by Gerald Munson were first brought to my attention I immediately instructed the our Police Department Detective Division to initiate an investigation into the allegations and to reach out to the Westchester County District Attorney's Office Public Integrity Bureau as well as the New York State Comptroller's Office," Village of Croton-on-Hudson Police Chief Russel H. Harper said.

“It is through this collaborative investigation and effort that we will be able to prosecute the defendant and seek justice for the public as well the members of the Croton-on-Hudson Volunteer Fire Department. I thank Westchester District Attorney Anthony Scarpino and New York State Comptroller Thomas P. DiNapoli for the collaborative effort of all three agencies throughout this process and investigation.”

The investigation revealed that between on or about January 2011 and on or about February 2018, the defendant stole approximately $312,925 from the Fire Department. That led to Munson’s arrest and felony charges.

“Public corruption is a crime that hurts all of us,” said Scarpino. “We are proud of this collaboration between our Office, the Village of Croton-on Hudson Police Department and the New York State Comptroller’s Office to find the root cause of the misuse of public money and will continue the work needed to prosecute this case in the courts and see that justice is done.”

On the two charges, Munson faces a maximum sentence of 25 years and 15 years respectively in state prison. His next court appearance is scheduled for Sept. 12, 2018.

Assistant District Attorney Brian Fitzgerald, Deputy Bureau Chief of the Westchester District Attorney’s Office Investigations Division Public Integrity Bureau, is prosecuting the case.

Volunteer fire departments in the Hudson Valley have been rocked by scandals.

• Former Mahopac Fire Department Treasurer Sentenced in $5.6 Million Theft
• Ex-Treasurer to be Sentenced in Patterson FD Embezzlement
• FBI Investigating Port Chester Fire Company's Missing $40K

PHOTO/ Westchester County DA's Office