HUBBARD LAKE – Betrayal was one of the feelings members of the Hubbard Lake Fire Department had in October 2014 after it was discovered their volunteer treasurer allegedly was embezzling funds from the department, Trustee Mark Palmer said.

“I expect that a lot of our constituents in our fire districts are going to feel betrayed,” he said. “The board was shocked to find out because Alcona County is such a small community and everybody knows everybody, and everybody knows everyone’s business, so it was a shock and it was sad for all involved.”

Thursday it was announced by the Michigan State Police Alpena Post that former volunteer Treasurer Mary Katherine Largent, 47, was facing embezzlement charges as a result of an investigation stemming from October 2014.

MSP Det. Jennifer Pintar said Largent was charged with embezzlement of more than $50,000 but less than $100,000, a felony, and faces up to 15 years in prison if convicted.

Pintar did not release an exact amount of money allegedly taken by Largent, but said some allegedly was used for gambling purposes. Other funds, through the use of a credit card, were allegedly used for personal transactions, Pintar said.

Palmer said Largent had left her post and a new treasurer discovered inconsistencies in the books when they were newly reviewed, prompting an investigation by Alcona County Prosecutor Thomas Weichel and MSP. He said the department immediate contacted police after the alleged embezzlement was discovered

In the wake of the discovery and subsequent investigation, Palmer vowed that officials will do everything they can to resolve the issue and be as transparent as possible with the public.

He said later this spring a public forum will be held to lay out all the details of the investigation and what the alleged embezzlement means to the community. The date of the event is to be announced.

“We’re very dedicated to resolving this as positively and as quickly as possible and providing good clear communication about what it is and addressing people’s concerns,” he said. “People are not on the fire department because they don’t care, they are there because they care about the community, and to have this come up is a difficult thing, and it’s good that we have a very dedicated group of people.”

The privately operated department is staffed entirely by unpaid volunteer firefighters Palmer said, and funded through millage funds collected by Hawes Township, which contracts with the department for fire protection services.

He said when a new volunteer treasurer stepped in in 2014 – unrelated to the alleged embezzlement – the ball got rolling on the embezzlement investigation after the new treasurer discovered alleged “inconsistencies.”

“We went through all the records from 2000 forward with the state police,” he said. “Basically what happened is we worked with a CPA firm and did a forensic analysis, and most of the leg work was done by the members of the board.”

Much of the private organization’s financial policy has changed as a result of the discovery, Palmer said.

“We have instituted strict financial policy,” he said. “There is an overview and multiple signatures of checks with board overview of the financial statements every other month.”

Palmer said this was not occurring before. Another change is the implementation of a robust accounting program called Church Windows.

“It is used to handle the finances of churches and other fire departments,” he said. “It handles association membership for contributions and is one that members of the board are familiar with. It is a very professional piece of software.”

Before the software implementation, Palmer admitted the department only did finances on paper and did not record things using a computer. He said public trust is a huge issue for the department, and said he hopes the public can see it is trying to correct the issue and keep it from ever happening again.

“The department is obviously a necessary part of the community and a vital piece of the emergency response plan for the township and for the county,” he said. “This is difficult because of the issues of public trust that are involved.”

Palmer said the department plans to continue use of the department hall as a community center, Red Cross shelter and other uses, but said because of the embezzlement, it might not be able to purchase certain firefighting equipment in the coming years.

“While we’re not falling apart or in any dire straits, there were things that were that were not kept up to date as they should be,” he said. “But there are no safety issues. I think we’re good, I think just important to know that since this has occurred there are new members on the board and a new outlook.”

Jason Ogden can be reached via email at jogden@thealpenanews.com or by phone at 358-5693. Follow Jason on Twitter @jo_alpenanews. Read his blog, Sunny side up, with Jason at www.thealpenanews.com.