By Lori Carlson

Editor

Prior Lake Fire Chief Bruce Sames has been charged with two felony counts of theft and one count of embezzlement in Scott County District Court after Samesadmitting he stole more than $13,000 from a fire department fund over the last year to support his gambling addiction.

Sames resigned Tuesday after admitting the theft to investigators. He did not return a call for comment this week.

Each of the three charges carries penalties of up to 10 years in prison and up to a $20,000 fine.

After questioned by investigators, Sames admitted to withdrawing $13,463 over a one-year period from a fire department-administered miscellaneous expense fund, which includes money collected from the annual firefighter dance and chicken barbecue – the department’s biggest fund-raiser.

According to the criminal complaint, Brian Davis, a firefighter and treasurer of the fund, noticed the first discrepancy in the account nearly a year ago. On Jan. 30, 2006, Davis gave Sames a check from the fire department’s fund after Sames said he needed $50 to take members of the department to a police-recognition dinner. But when Davis got the January 2006 monthly statement that included the $50 check, the amount had changed to $5,500.

Davis told investigators that he questioned Sames about the check and that Sames told him not to tell anyone, not to worry about it and that he would pay the money back.

Davis stated that during 2006, he noted 13 additional transactions in monthly statements on the account. All of the deposit and withdrawal slips, and checks for those transactions, were signed by Sames. The withdrawal slips and two checks were made out in Sames’ name.

The total amount of unauthorized withdrawals was $27,500. Sames allegedly deposited $14,000 into the account, leaving about $13,000 missing.

Davis told authorities that after he noticed two checks had been removed from the back of the department checkbook, he took the checkbook home with him and later approached Sames again about the missing money. Again, Sames told him not to worry about it and that he would “take care of it,” according to the complaint.

A Prior Lake State Bank employee contacted Davis on Jan. 4, saying he wanted to talk to him about overdrafts in the department checking account. On Jan. 6, Davis contacted First Assistant Chief Douglas Hartman and Second Assistant Chief Jim Larson, Jr. and told them about the problem. Hartman and Larson then contacted City Manager Frank Boyles.

Investigators interviewed Sames on Monday, Jan. 8, and Sames admitted to stealing the money, saying he intended to pay all of it back. He explained that his actions were the result of financial problems in the last year stemming from a divorce and a gambling problem. He said Davis was not part of any of the transactions.

Davis has been suspended indefinitely pending further investigation.

“Brian Davis was aware [of the missing money], but he delayed in making it known to others,” Boyles said on Thursday.

Davis submitted monthly reports to the fire department at business meetings over the last year, but no improprieties were reported, Boyles and Hartman said. The department approves each month’s financial report. “Brian was saying the account was fine,” said Boyles.

“It’s a report people listen to and pay attention to,” Hartman added. “They do ask questions, like, ‘What is this $75 for?’”

The bank employee who contacted Davis told police he first noticed that Sames’ personal account for his construction company was overdrawn in November and December. When he contacted Sames, he was told money would be in the account shortly. But a week later, he saw that Sames had deposited $10,000 into his personal account and $5,000 into the fire department account. He told investigators that he “found it odd that [Sames] would be making this transaction,” and he reported it to the bank’s internal auditor.

After the auditor reviewed the fire department account records and found numerous transactions involving Sames, the bank employee called Davis.

Hartman said he and Larson were “blindsided” by the news from Davis on Saturday. “It caught us all by surprise,” Hartman said.

On Wednesday, Sames – who joined the department in 1982 and became fire chief in 1999 – addressed firefighters about the situation. The reaction was “shock, which turned into total support,” Hartman said.

“The questions were largely about the well-being of the two guys [Sames and Davis],” Boyles said, adding that Sames told firefighters he is seeking treatment for his gambling addiction.

Sames repaid the full $13,463 to the fund Wednesday, Boyles said. Finance Director Ralph Teschner and the fire department’s pension fund treasurer analyzed the city budget and pension fund, finding no money missing from those accounts, Boyles added.

Sames had full access to the account, and no second signature was needed for withdrawals, Boyles said. The checking account for the fund Sames drew from has been frozen and closed, and funds will be transferred to an annually audited account requiring two signatures for withdrawal, he said.

The pensions of Sames and Davis will not be affected. Sames – who works full-time as a building contractor – is eligible for about 24 years’ worth of service.

Hartman, a Prior Lake firefighter since 1990, will assume the duties of fire chief, while Larson will become first assistant chief. Firefighters will have an election in the future to fill the second assistant chief spot and the training officer position Davis held.

In September, voters approved a $3.7 million referendum for a second fire station and platform truck. The new station’s projected January 2008 opening won’t be affected by Sames’ resignation, Boyles said.

In the last year, Sames has gone through “tough times in his personal life,” said Boyles, who would not elaborate. In Sames’ statement of resignation, he stated his intent to resign “due to circumstances that transpired over the past year in my personal life and in my fire chief duties.”

No other aspects of Sames’ job were affected by his gambling addiction or personal problems, both Boyles and Hartman said.

“Bruce’s leadership has been outstanding. He’s given 26 years to this community. But he screwed up, and he admitted that,” Boyles said.

Lori Carlson can be reached at (952) 345-6378 or editor@plamerican.com. Shawn Hogendorf contributed to this story.