Former Fire Department Treasurer Sentenced in $5.6 Million Theft

MAHOPAC, NY — Michael Klein, the former treasurer of the Mahopac Fire Department who embezzled $5.6 million dollars from the volunteer organization, was sentenced Wednesday to 77 months in prison. His crime spanned 14 years. Officials said he spent most of the money on yachts, jewelry and a second home in Florida..

“On hundreds of occasions over more than 13 years, Michael Klein stole from the volunteer fire department he was elected to serve," said Joon H. Kim, the Acting United States Attorney for the Southern District of New York, in an announcement about the sentencing. "Klein took more than $5 million of the fire department’s money, and used it to buy himself several boats, luxury cars, cruises, and tens of thousands of dollars of jewelry. Then he lied about it on his taxes, and obstructed the investigation of his crimes. Now, Michael Klein has been sentenced to the lengthy prison term that his crimes merit.”

He was originally charged with one count of wire fraud and six counts of subscribing to false tax returns. He pleaded guilty in March to wire fraud, subscription to false tax returns, obstruction of the grand jury, and false statement charges.

The last two charges were added due to his actions as the investigation got underway. Klein obstructed the grand jury’s investigation by lying about his finances and by concealing and dissipating assets. He concealed the proceeds he received from the sale of a Corvette by giving the money to a relative for deposit to her bank account and then arranging for the relative to pay his household bills.

He also concealed an antique fire truck to prevent law enforcement from seizing it; sold a 2012 Victory motorcycle, converting the proceeds to cash; and transferred $58,000 to his mother as purported repayment of a college loan. In April 2016, he sold his yacht “K’Bam,” which he had purchased for $260,000 in 2012, for $136,850.46. In May 2016, he gave the United States Attorney a financial statement in which he falsely claimed, among other things, that one of his companies had a delinquent loan of $275,000, and that, as a result of that loan, a lien was filed against his Florida property.

He'll be giving a lot of it back.

Klein agreed to forfeit to the United States a sum of $5,675,360.49; his second home in Palm City, Florida; his equity in his yacht club in Palm City; cash held in various bank accounts; a 1931 American LaFrance antique fire engine; proceeds of a life insurance policy; a 2000 13-foot Nautica vessel with an outboard motor; and a 2005 Eliminator trailer.

In addition to the prison sentence, Klein, 49, of Mahopac, New York, and Palm City, Florida, was sentenced to three years of supervised release.

SEE ALSO:

• Former Treasurer Accused of Embezzling Millions from Mahopac Fire Department
  
• Plea from Former Fire Department Treasurer in $5.6M Theft