American Legion member: 'It's a disgrace'

There was a time when Milton resident Ronald Tipton considered leaving everything he owns to the American Legion. But since a check-writing scam left Post 28 short $641,000, he's thought twice about it.

“I was going to change my will,” he said. “I'm sure glad I didn't.”

Tipton and the community learned about the money missing from the Millsboro post on Route 24 April 7 after police charged five current and former officers in connection with the missing $641,000.

What steams Tipton most, however, is a letter he received a month earlier signed by Commander Austin Govin asking members to donate money for a new roof while stating, “The why of the lack of funds is not important at this point.”

“To put the letter out before the news is out is wrong,” he said. “Don't ask for more money. To me that's the height of arrogance.”

He gave no money.

“You place your trust in something, and then you hear about this,” Tipton said. “You can't just brush this under the rug.”

One woman, who asked not to be identified, wants to know what happened to the missing money.

“These greedy men should be made to pay back the money and go to jail,” she said. “I think it's a disgrace that they did this.”

Govin said the legion is looking into whether it can recoup any money from its insurance policy. He would not comment whether the legion will file a civil suit to recover the missing money.

“We hope to get the money back,” he said. “We could do a lot with the money.”

Meanwhile, he said, the legion has asked for donations to help pay for a new $58,000 roof. The facility also needs new carpet, and the parking lot needs repair, he said.

Govin, who was elected commander in 2015 and served as adjutant the year before, said membership is about 3,000. He said membership dropped off a bit after some of the officers were replaced, but it's the weekend activity that has declined the most. Before staff changes were made, Govin said, the Millsboro facility was packed on the weekends with people eating, drinking and playing slot machines. Those crowds are no longer there.

Still, Govin said, revenue from at least one machine that dispenses pull tab gambling cards has made nearly four times the previous revenues since the shake-up. Revenues have increased from $6,000 to $23,000 annually, he said. Govin said he also wonders what happened to the revenue.

“You can see there was something going on,” he said.

For three years, Govin said a previous administration conducted financial business with no oversight.

Some officers had suspicions in 2012 when they asked legion members to approve an independent audit of revenues, Govin said. However, he said, membership rejected it because of the cost. The audit was eventually approved and concluded in 2015, uncovering $48,000 in missing revenue. There were also discrepancies in the amount of money reported to state gaming authorities, a requirement under state slot-machine law.

“That's how it started,” Govin said, referring to suspicions over missing money.

About the same time, a video camera was placed in a room where slot machine money was counted. When the video showed then-finance officer and former post commander Charles Nimmerichter pocketing cash, Govin said he called law enforcement.

A three-month Division of Gaming Enforcement investigation uncovered a series of checks written to cash adding up to $641,000. Checks written to cash did not have the required two signatures, and the legion received no money from the cashed checks, court records state.

Nimmerichter, 52, of Millsboro was charged with a misdemeanor in connection with thefts totaling $400. He was released on $500 unsecured bond pending a May 2 court appearance.

Also arrested were James Gallagher, 65, a state commander for the American Legion, who has since recused himself from the position, and who also served as Post 28 commander from 2011-13; recent Post 28 Vice Commander Edward Mazewski, 68, who was removed from his position April 11; 2013 finance officer Samuel P. Mauger, 64; and former Adjutant Michael Rooney, 65. All of the accused are from Millsboro except Georgetown resident Rooney.

Mauger was charged with two counts of theft over $100,000, totaling $376,000. He was released on $41,000 unsecured bond.

Three were charged with felony thefts over $1,500: Mazewski for thefts totaling $20,000 and Gallagher and Rooney for thefts totaling $13,000. They were released on $2,000 unsecured bond. In an American Legion press release, Gallagher denies any culpability on both counts.

Department of Homeland Security and Safety spokeswoman Wendy Hudson said David Yetman, 72, of Harbeson, now deceased, is suspected of taking about $218, 000. Hudson said the investigation is ongoing and would not say whether the state would seek compensation from Yetman's estate.

A preliminary hearing held April 13 in Sussex County Court of Common Pleas was continued until April 28.

Mauger, Gallagher and Mazewski declined to comment as they exited the Sussex County courthouse together following the court proceding.

When asked if he was still state commander, Gallagher said, “I'm going to recuse myself right now.”

State Adjutant Richard Santos said Gallagher remains state commander, but he has recused himself from his duties.

“He's not involved in the day-to-day operations,” Santos said. “We're not consulting with him on any matters. The vice commander is now in charge.”

Santos said he had no concerns that Gallagher misappropriated funds at the state level, saying, “I have known him for many years, and we have had no issues with him.”

Santos said he also believes there are inaccuracies in the state's investigation.

“I feel he will be exonerated,” he said.