By Janet Kelley and Cindy Stauffer
The Intelligencer Journal/New Era
WARWICK, Pa. — It apparently was easy enough to explain away the losses.
Even losses totaling nearly $400,000.
The treasurer blamed it on the poor economy.
But Warwick Community Ambulance Association officials recently discovered the problem was much simpler and much closer to home.
James Allen Reynolds, the association’s general manager, executive manager and treasurer, allegedly was using the group’s funds for his own personal expenses - in all, more than $388,138 of the association’s funds over an 18-month period, police said.
On Friday, police announced that Reynolds, 39, of 2816 Marietta Ave., had been charged with five counts of theft.
The investigation is continuing, police said, and ambulance officials said they expect the financial loss to climb to as high as $500,000.
So how was the money spent?
Some of it went for personal family expenses, police said, including payments to a local funeral home and plastic surgeon, according to court documents.
But most of it went toward Reynolds’ dream of owning his own hunting supply business, police said.
Police said that while he was employed by the association, 151 North Lane, between January 2008 and July 2009, Reynolds allegedly:
Used the association’s debit card and made online purchases from various companies totaling more than $151,651.
Issued 30 Warwick Community Ambulance Association checks to himself, which he later cashed for $103,124.
Made numerous online money transfers to others through eBay and similar services totaling $70,655.
Made payments with the ambulance association debit card to several banking institutions to pay off personal loans amounting to $47,965.
Made 56 unauthorized cash withdrawals for a total of $14,741.
Lititz Police Detective John Schofield credited ambulance association officials as “the ones who realized something wasn’t right with the balance.’'
In June, the ambulance association board of directors began looking into missing funds, Schofield said.
By August, they believed that Reynolds had taken the money for his personal use, and they contacted police.
Once they began looking at the expenditures, Schofield said, they discovered most of the purchases were for water fowl and hunting gear.
“We’re not pleased,’' Frank Kenavan, director of the ambulance association, said Friday. “Everyone wants to believe something like this couldn’t and wouldn’t happen.’'
“We’re seeing it every day, whether at church or a community service company. This stuff happens. We’re not thrilled,’' Kenavan said. “What else can we say?’'
Kenavan said that during the time Reynolds was in charge of the accounting, he explained away the losses by blaming the bad economy.
“It all made a lot of sense,’' Kenavan said, noting that the money came from investment accounts and not community donations.
But the reports, apparently, were not accurate, police said.
The board of directors brought in another accountant, reviewed the books and discovered the discrepancies.
The prices of Reynolds’ purchases ranged from hundreds to several thousand dollars for hunting equipment, guns and ammunition, according to court records.
Among the many businesses Reynolds allegedly patronized, according to court documents, were:
Cabela’s, $18,450; Budsgunshops, $2,508; Bear Trailer Sports, $36,989; Kones Korner Gun Shops, $2,012; Bass Pro Shops, $3,039; Cold War Shooters, $2,327; S&S Firearms & Hunts, $1,071; Shorts Marine, $4,103; Mack’s Prairie Wings, $8,010; Lion Country Supply, $2,155; Albright Sports Limited, $3,885; and Hunters Friend, $2,983.
Among the other expenses documented by police was a $1,000 payment to Lancaster Plastic Surgery and $1,267 to Scheid Funeral Home.
Reynolds also allegedly paid $396 to Amtrak trains and $933 for a New York City hotel bill, police said.
Plus, according to court documents, Reynolds patronized several local department, home improvement and discount stores.
Kenavan emphasized that the incident will not have an effect on future services of the ambulance association.
Luckily, the association carries insurance for such a situation, he said, so it expects “to suffer little or no financial loss.’'
Kenavan said that Reynolds had been associated with the group for three or four years before he was named general manager.
Since the alleged incident, Kenavan said, the association has changed its accounting policy to require two signatures for each expenditure.
Reynolds was arrested Wednesday, arraigned before District Judge Rodney Hartman and committed to county prison.
Copyright 2009 Lancaster Newspapers, Inc.