By By JOHN EBY / Dowagiac Daily News
Kathy McFadden, office manager of the former Dowagiac Volunteer Fire Department and Ambulance Service, faces seven felony charges for allegedly embezzling $19,785.11, according to Cass County Prosecutor Victor Fitz.
McFadden, 43, of 56707 C.R. 681, Hartford, turned herself in on the warrant and was arraigned Friday afternoon, when bond was set at $10,000 cash/surety.
Fitz said allegations include repeated fraudulent ATM card use encompassing 59 transactions in four Michigan counties and three states, as well as Internet use between Jan. 4, 2007, and Dec. 24, 2007:
Cass County, 38 uses for $13,615.
Berrien County, seven uses for $2,703.
Van Buren County, five uses for $1,900.
Kalamazoo County, one use for $175.
South Bend, Ind., one use for $721.84.
Chicago, Ill., one use for $401.50.
Other, one use for $100.29.
PayPal via the Internet, five use for $168.48, totaling 59 uses for $19,785.11.
Charges she faces include:
Count 1, embezzlement less than $20,000 (felony), punishable by five years/$10,000.
Count 2, financial transaction device – theft (felony); penalty: four years/$5,000.
Count 3, financial transaction device – illegal possession (felony); penalty: four years/$5,000.
Count 4, financial transaction device – illegal use (felony); penalty: four years/$5,000.
Count 5, financial transaction device – illegal use (felony); penalty: four years/$5,000.
Count 6, financial transaction device – illegal use (felony); penalty: four years/$5,000.
Count 7, financial transaction device – illegal use (felony); penalty: four years/$5,000.
A Fourth District Court preliminary examination is scheduled for Wednesday, March 26, at 9 a.m. at the Cass County Law and Courts Building in Cassopolis.
In February 2007, the ambulance service, a private, non-profit entity independent of city operations, borrowed $15,000 from Dowagiac City Council trying to stay afloat.
Life EMS on March 22, 2007, assumed management of the service.
The city joined an emergency services authority which selected Coloma Emergency Medical Services to provide area ambulance coverage.
CEMS took over March 1.
Dowagiac Volunteer Fire Department continues to struggle with approximately $12,000 in debt left unpaid by the ambulance service.
All avenues for dealing with this debt are being reviewed.
One option is to liquidate a number of ambulance-related items in the hopes that they will be able to pay off as much debt as possible with money generated through this sale.
Fire Chief Harold Munson is working with the Volunteer Fire Department Board.