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Friday, November 22, 2024

Former Argyle Fire Chief sentenced for misusing district funds

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U.S. Attorney Damien M. Diggs | U.S. Department of Justice

U.S. Attorney Damien M. Diggs | U.S. Department of Justice

PLANO, Texas – The former Argyle Fire Chief has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Troy Mac Hohenberger, 65, pleaded guilty to multiple federal charges related to misuse and theft of funds from the Argyle Fire District, Inc. operating account, along with making false statements to the Department of Labor and was sentenced to 50 months in federal prison by U.S. District Judge Robert W. Schroeder III on August 1, 2024. He was also ordered to pay $509,807.50 in restitution to the Argyle Fire District, Inc., and to forfeit $28,048.34.

According to information presented in court, Hohenberger stole money from the operating account of the Argyle Fire District, Inc., which received federal funds in the form of Medicare reimbursements and used over $490,000 of those funds to pay personal credit card bills. Those personal credit card expenses included cash advances at casinos, payments related to a family member’s business in Hawaii, and other personal uses. The evidence also showed that Hohenberger failed to fund firefighter retirement accounts in the time required by federal regulations, embezzled or stole the funds, and made false statements related to the ERISA-qualified firefighter retirement plan on a form submitted to the Department of Labor. Hohenberger was indicted by a federal grand jury in November 2022.

“Today’s sentence sends a message that my office takes seriously crimes related to the misuse, theft, and embezzlement of retirement- and pension-plan assets,” said U.S. Attorney Damien M. Diggs. “Because the defendant chose personal gain over his fiduciary responsibilities, he will now spend significant time in prison. We appreciate the diligence and partnership of the FBI and the Department of Labor in investigating these offenses.”

“Financial fraud is not a victimless crime," said FBI Dallas Special Agent in Charge Chad Yarbrough. "The defendant didn't just embezzle federal funds; he took money meant for his colleagues' retirement accounts and selfishly spent it on himself."

Deborah Perry, Dallas Regional Director of the Department of Labor's Employee Benefits Security Administration stated: "I hope this sends a clear message that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector pension and health plans."

This case was investigated by the FBI and the Department of Labor – EBSA.

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