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Fred Andrew Potzer is accused of "financial gymnastics" by manipulating the Newville Borough books to use funds from the Newville Water and Sewer Authority to pay for local projects, the DA explained at a press conference.
Potzer has been charged with the following according to the DA and court documents:
- Felony Tampering With Public Record/Information.
- Felony Access Device Fraud.
- Misdemeanor Misapplication of Entrusted Property & Property of Government or Financial Institutions.
- Misdemeanor Tampering with Public Records or Information.
These charges come following a 16-month-long investigation conducted by the Criminal Investigations Division of the District Attorney’s Office after being notified of irregularities by both the Newville Borough Council and the Newville Water and Sewer Authority.
Potzer first took positions within the council and the authority in 1994 and held remained in the positions until he became ill in December 2022, which is when the financial discrepancies came to light.
The statute of limitations only allowed the detectives to look back into records starting in Dec. 2017, but this still meant over 40 banker boxes were turned over to county detectives. The detectives contracted Boyer & Ritter to perform a forensic financial audit of the records.
They determined that Potzer "knowingly created false treasurer and fraudulent financial reports with the intent that those reports would be accepted as genuine reports by the Newville Borough Council and Water & Sewer Authority to cover up his mismanagement and misappropriation of Newville’s financial funds," as stated in a release by the DA's office.
This investigation has found that 65 treasurer reports, from Dec. 2017 through Nov. 2022, were inaccurate. Although, it was noted multiple times that Potzer did not take funds for himself and the coverup is the main focus of the DA's case.
District Attorney McCormack commented on today's filing, "The criminal charges filed today are primarily related to the steps Potzer took to cover up his mismanagement of borough and authority funds. His actions leave both the borough and the water/sewer authority in a significant financial hole. One that ultimately falls on the shoulders of the residents of Newville. That is where the impact of these crimes is being felt most."
Potzer was released on $10,000 in bail and has a preliminary hearing set before Magisterial District Judge John J. Hanner, II at 9:45 a.m. on May 23.
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