UPDATE: Fire Co. Ex-Treasurer Pleads Guilty to Theft Of Department Funds

SEAVILLE – “Your training reimbursement check will be ready soon.”
With that statement one year ago in December 2013 from the Seaville Fire Department treasurer to firefighter Jacob Speigel red flags went up and an investigation into potential financial fraud at the firehouse soon began.
Michael Petrella, 26, of Seaville, pleaded guilty before Cape May County Superior Court Judge John Porto to one count of third-degree misapplication of entrusted property.
Seaville Fire Chief Richard Stevens told the Herald that the offhand comment he’d overheard left him asking “what training?” because the firefighters’ training was done for the year.
The innocuous comment prompted the administrative officers of the Seaville Volunteer Fire and Rescue Company to begin looking into the $1,275 reimbursement Spiegel had submitted. By Jan. 15 of this year, the officers called Spiegel to the firehouse and asked him to resign.
“This entire episode is a real shame,” commented Upper Township Mayor Richard Palombo. The Seaville Fire Department lies within the township and in the township had been asked by a few residents to take on the responsibilities of its supervision, which to date, Upper Township officials have declined to do.
“Each and every day Seaville’s volunteer fire department (and I emphasize that they are all unpaid volunteers) puts the lives of its firefighters on the line as they do their dangerous jobs. The township doesn’t, of course, condone any of this illegal behavior. We are pleased that the fire department immediately took the right steps to conduct an internal investigation, have an outsider do audits, and not let a couple of individuals who thought they could get with away with this bad behavior taint the tremendous work our firefighting men and women do for us on a daily basis,” he continued.
The Dec. 18 guilty plea by former Seaville Volunteer Fire and Rescue Company Treasurer Michael Petrella is a direct result of that investigation. Prosecution of Jacob Speigel and his father, former fire chief Eugene Speigel is currently underway after their previous indictments.
In a Dec. 18 release, Acting Attorney General John J. Hoffman announced that the former treasurer of the Seaville Volunteer Fire and Rescue Company, whose dismissed chief was accused in September of stealing funds from it, pleaded guilty that day to charges that he stole approximately $19,000 by using fire company funds to reimburse himself for personal expenses.
As part of Petrella’s plea agreement, the Division of Criminal Justice recommended 364 days of jail custody. Petrella will pay restitution in the amount of $19,308 to the fire company, and he also will be permanently barred from holding public employment. Petrella’s sentencing is scheduled for Feb. 27, 2015.
Petrella joined the fire company as a member in 2006 and was made treasurer in 2010. He admitted that from 2010 to 2013, he fraudulently used fire company funds to reimburse himself for personal expenses, including beer, diapers and assorted personal items.
Petrella had purchased those items, kept receipts and then issued fire company checks to himself to cover the cost.
Petrella’s crime was discovered during an internal investigation begun in January by the fire company, which found that its chief, Eugene Spegiel, 51, had allegedly been reimbursing himself for expenses totaling approximately $45,000 that he had not incurred.
Speigel also allegedly signed off on and sought reimbursement for fraudulent expenses for his son, Jacob Speigel, a Seaville firefighter, in the amount of $1,275. The elder Speigel resigned Jan. 15 shortly after being confronted with the allegations; Jacob, 20, stayed on and served a 30-day suspension, but was later terminated in April.
The Division of Criminal Justice believes the evidence compiled in both cases suggests that the crimes were unrelated.
“Public corruption comes in many forms, but this particular case is concerning because it was possible that Petrella’s scam could have gone undetected for a long period had the fire company not become suspicious of its chief and then stumbled onto its treasurer’s misdeeds,” stated Hoffman.
“Petrella betrayed the trust of his community and fellow volunteers by using the public safety organization’s funds as a personal checking account,” he continued.
“As treasurer, Petrella abused his position to steal fire company funds by writing checks to himself,” stated Division of Criminal Justice Director Elie Honig. “We will continue to prosecute public corruption in all its forms to ensure that those entrusted to protect the public’s safety faithfully execute their responsibilities,” Honig added.
The elder Speigel was charged in a Sept. 24 indictment with second-degree official misconduct, second-degree conspiracy to commit official misconduct, two counts of third-degree theft by deception and fourth-degree falsifying records. Jacob was charged with second-degree official misconduct, second-degree conspiracy to commit official misconduct and third-degree theft by deception.
Deputy Attorneys General Jon Gilmore and Peter Lee presented the case to the grand jury on behalf of the Division of Criminal Justice Corruption Bureau. New Jersey State Police Corruption Bureau Detectives Laura Wheeler, David Feldstein and David Engelhard assisted with the investigation.
For previous coverage, go to:
– Former Seaville Fire Chief, Son Indicted for Allegedly Stealing $46,000 from Fire Company: http://goo.gl/OYHP0g