Case ends against American Legion officers

No new charges will be filed against five former American Legion officials who were accused 10 months ago of stealing $641,000 from legion Post #28 in Millsboro.

On Feb. 1, the Division of Gaming Enforcement announced the men will not be charged again.

“During the ongoing investigation, an extensive review of the Post’s financial records revealed that checks were written out to “cash” on an account for the post’s ATM machine. These checks were to obtain cash to replenish the money in the post’s ATM machine,” said Kimberly Chandler, deputy principal assistant for the Delaware Department of Safety and Homeland Security. “In addition, ATM records for the machine reflected that withdrawals made by the accused reconciled with cash withdrawals made by patrons.”

Chandler said the Attorney General’s Office reviewed the investigation and concluded there was no basis to proceed with prosecution. She also said the post is establishing better financial controls and safeguards.

Still, the dramatic charges raise questions about the original investigation.

James Gallagher, 65, who at the time of his arrest was commander of the state American Legion organization, and former Post 28 officials Samuel Mauger, 64, Edward Mazewski, 68, Michael Rooney, 65, and Charles Nimmerichter, 52, were charged with theft on April 7, only to have those charges thrown out three weeks later on April 28.

Charges were dropped without prejudice, but at the time, officials were quick to say that the case was far from over. “It's bigger than what they thought originally,” said Delaware Department of Safety and Homeland Security spokeswoman Wendy Hudson.

She also said the state Auditor's Office would assist with the investigation. However, State Auditor Tom Wagner said the office was never involved.

Prosecuting officials and investigators have shared little about the case.

After months of requests for information, Carl Kanefsky, spokesman for the Attorney General's Office, only said there is nothing new to report.

Attorney General Matt Denn declined to comment on the case.

Gallagher, Mauger and Mazewski, all of Millsboro, also declined to comment following court appearances in April. Rooney, of Georgetown, and Nimmerichter, of Millsboro, could not be reached for comment.

Investigation begins 

Suspicions grew in 2012 about missing slot-machine revenue at Post 28, resulting in some officers asking for an independent audit. The audit was eventually approved and completed in 2015, uncovering $48,000 in missing revenue. Armed with the audit and many questions about where the money went, Post 28 officers contacted Division of Gaming Enforcement to investigate.

Gaming officials discovered more than missing slot machine revenue: a series of checks written to cash that added up to $641,000. Those checks did not have the required two signatures, and the legion received no money from the cashed checks, court records state.

A video recorder placed in Post 28's office after officials first suspected missing money showed one officer putting money in his pockets on several occassions, records state.

Upon questioning, records state, the officer explained that a former officer told him he is entitled to $400 a month and can take it whenever he wants.

He then told officials that he suspected several post members were stealing. He told police that he saw checks written out to cash and to other people he did not know.

Post 28 Commander Austin Govin would not comment on the investigation.

He said fundraising for the Route 24 facility was slow when the story first broke, but it has picked up since then. There should be enough money for a new roof, carpeting and other improvements, he said.
“We're doing a lot better now,” he said.