Ex-Treasurer Enters Plea in Patterson FD Embezzlement Case

Albert Melin, the former treasurer of the Patterson Fire Department, pleaded guilty Wednesday to wire fraud and false subscription to tax returns in connection with his embezzlement of more than $1.1 million from the all-volunteer department.

The announcement was made jointly by Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Thomas P. DiNapoli, New York State Comptroller, and George Beach, Superintendent, New York State Police.

Melin took money that was supposed to be used for fighting fires and other department needs, and instead used it to keep his own private businesses afloat and pay his personal bills, Bharara said.

“Former treasurer Albert Melin was so brash that he wrote $1.1 million in fire department checks to his chiropractic and another business to support his opulent lifestyle," DiNapoli said in the announcement. "Luckily, our $5.7 million investigation of nearby Mahopac Fire Department prompted the Patterson fire commissioners to examine their books and expose these thefts. I thank U.S. Attorney for the Southern District Preet Bharara, the New York State Police, the Internal Revenue Service and the Federal Bureau of Investigation for their diligent work on this case.”

Melin's case is before Magistrate Judge Judith C. McCarthy. He is due to be sentenced in February.

According to the allegations contained in the Information filed against MELIN and statements made in related court filings and proceedings:

MELIN was first elected treasurer of the PFD in 2013. From December 2013 to October 2015, MELIN embezzled PFD funds under his control by writing checks to the two businesses he owned, 211 Medical, P.C. (“211 Medical”) and N.A.S. Management Co., Inc. (“N.A.S.”). MELIN then deposited the checks to bank accounts held by 211 Medical or N.A.S. MELIN also charged expenses of 211 Medical and N.A.S. to the PFD’s debit card.

MELIN embezzled more than $1.1 million by writing more than 130 fraudulent checks. He used the money to support 211 Medical and N.A.S., to make payments on his home mortgage loan, and to pay personal expenses, including the costs of family vacations. MELIN failed to report this income on his personal tax return for 2014 and falsely reported some of the embezzled funds as revenue on the corporate tax return for 211 Medical in an effort to disguise its source.

MELIN, 46, of Patterson, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of subscribing to false tax returns, which carries a maximum sentence of three years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the court.

In pleading guilty, MELIN agreed to forfeit to the United States a sum of money no less than $1,151,000.

MELIN is scheduled to be sentenced by U.S. District Court Judge Nelson S. Roman on February 3, 2017.

Mr. Bharara praised the outstanding investigative work of the IRS, the FBI, the New York State Comptroller, and the New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.

This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.