LOCAL

Former treasurer sentenced for misappropriating funds from Hancock-area groups

Julie E. Greene
The Herald-Mail

A Hancock-area man was sentenced to 18 months in jail Thursday for misappropriating $50,443 from two community groups.

Washington County Circuit Court Judge Mark K. Boyer denied a defense motion for a continuance, moving forward with sentencing because he said he wasn't satisfied with John P. True's efforts to make restitution to the Tonoloway Rod & Gun Club west of Hancock and the James W. Bowers Masonic Lodge of Hancock.

In both cases, True entered an Alford plea in October to the misdemeanor charge of fraudulently and willfully misappropriating funds he held in a fiduciary capacity, according to court records. True is the former treasurer of both organizations.

An Alford plea does not admit guilt, but acknowledges the prosecution has enough evidence to obtain a conviction.

More local news:It's a long way from Baghdad to Smithsburg. But Harvey still reflects on miscues in Iraq

Felony theft charges and other counts were dismissed as part of the plea deal.

On Thursday, Boyer said he might not know where the money went that True misappropriated, but he wasn't convinced True didn't know.

Defense attorney David Harbin, noting that a lot of money was missing and had been shifted between the clubs, asked his client where the money went.

True, who is 65 and has various medical issues, answered that Masonic Lodge money was used for a contractor but he didn't remember where the other money went.

Harbin told Boyer that True had a stroke a couple years ago and has trouble remembering things.

At one point early in the hearing, True could be heard briefly crying and was visibly shaking.

Where did the embezzled money go?

True's wife told the judge that she and her children tried to determine where the money went. There were charges to businesses like PayPal and the "nearest" they came up with was gambling, online poker, but she said she still had no clue where all the money went.

The wife, who periodically cried while answering questions and explaining the couple's various debts, said she had been blindsided by the embezzlement charges against her husband.

When Harbin asked True if he has a gambling problem, he said, "No sir." When Harbin rephrased the question to ask True if he had a gambling problem, True paused and said, "I don't remember."

Harbin asked Boyer for a suspended sentence or to delay sentencing so True could get medical care. He said he didn't think the Washington County Detention Center or prison would have the ability to take care of True, whose health issues have resulted in amputations.

True used a walker to enter the courtroom.

Boyer acknowledged it was a difficult case, but said True was "competent enough to juggle this Ponzi scheme. His medical issues do not permit him to go through life embezzling money."

Sentencing for embezzling from two community groups

The judge cited punishment and deterrence in sentencing True.

He was in a position of trust with both organizations and took advantage, Boyer said.

Boyer sentenced True to five years in prison with all but 18 months suspended in the gun club case. True was sentenced to a consecutive five years in prison, all suspended, in the Masonic Temple case.

True is to serve his sentence at the detention center. Boyer said True could report to the jail by 3 p.m. Friday, to allow him to make a medical appointment earlier in the day.

True will be on supervised probation for five years when he is released.

Tri-State business news:Two area Dunkin' stores violate child-labor laws; owner pays $41,000 federal fine

The judge ordered True to pay restitution of $33,743.47 to the rod and gun club and $16,699.56 to the Masonic Temple. He also ordered those amounts to be entered as judgments.

Boyer said True can continue attempts to refinance the home or sell assets while he's in jail.

Assistant State's Attorney Beverly Plutnick said the judgment entries will be recorded as liens in the defendant's name in Maryland. It's a way to try to secure the debts if he sells assets like his home, she said.

Harbin said during the hearing that True was trying to refinance the house, which is southeast of Hancock. He presented a denial letter from an attempted refinancing.

True's wife told Boyer the couple had refinanced their longtime house at least once.

Charging documents describe True making financial transactions in the spring of 2019, including in separate acts transferring $8,000 of the Masonic lodge's money to the rod and gun club. Then in separate checks, he paid $8,000 from the club to a concrete company that did work for the club.

A lodge representative at the sentencing hearing did not want to comment, said Jill Ritter, a victim/witness coordinator for the state's attorney's office.

Rod and gun club makes changes, moves on

Tonoloway Rod & Club President Leroy Mann told Boyer that over $80,000 was actually missing from the club's various accounts. He explained how the club was saving money for land acquisition and had accounts to help with other activities. The club helps the community in various ways, including providing scholarships and holding youth fishing rodeos, Mann said.

Mann said the club's treasurer, indicating True sitting at the defense table, stole from the club for over 20 years.

True presented false treasurer's reports, Mann said.

Wacky winter setting records:How will mild winter affect peaches and other fruit trees? We asked the orchardists

When True asked the club secretary in early 2019 if he could make two payments to the concrete contractor because he had to move some money around, Mann said he talked to the bank manager and learned there was a little over $60 in the club's checking account and its savings account had been closed.

Asked after the hearing what changes the club made as a result of the misappropriation of funds, Mann said the club hired a certified accountant to do the books annually, including a yearly audit. During every monthly board meeting, club officials go over the bank statements.

He called True a "master manipulator."

Despite the hardship, Mann said the club "never stopped doing things for the community."

The club is a tight-knit group that has "moved on" and worked to slowly get back to where it needs to be financially, Mann said.

Nine club members attended the sentencing hearing Thursday, including two officers and six board members.