Former township official pleads guilty to taking $700,000 in public funds

News-DemocratSeptember 20, 2013 

— Former Moro Township Supervisor Donald R. Flack pleaded guilty to a two-count criminal complaint against him in federal court Thursday morning.

The federal government alleged that from 2006 through May 2013, Flack misappropriated approximately $700,000 of public funds from Moro Township.

Flack signed a plea agreement acknowledging the federal government could prove the allegations against him in front of U.S. District Judge Michael J. Reagan.

"On your worst day, you could get 25 years," 20 years for count one and 5 years for count two, Reagan told Flack.

Reagan told Flack the agreement was an open plea in which the government did not recommend a sentence guideline.

Norman R Smith, was the federal prosecutor on the case. In his criminal complaint he alleged that Flack deposited a Moro Township Oil Fund check that was in an account at First National Bank into an account at Laclede Credit Union that later cleared through a Federal Reserve Bank in Atlanta.

Count one of the complaint alleged he entered into a wire fraud scheme to defraud the township under false and fraudulent pretenses.

Count two of the complaint alleged that Flack aided and abetted in the structuring of the wire transfers of funds to avoid a cash transaction report for a cash transaction over $10,000 and the record keeping requirement of a money service business to record a cash purchase of $3,000 or more and transmission of funds of $3,000 or more.

Reagan told him restitution is mandatory. "You will have to pay the money back," the judge said.

Flack, 77, was ordered, by Reagan to surrender his passport to his attorney, William Lucco. Lucco told Reagan that Flack had also surrendered his state Firearms Owners Identification card to him.

As township supervisor, Flack was required to accurately report the finances of the township to the township board, the citizens and the Illinois Comptroller's office.

Flack also served as the chairman of the board of directors of a local financial institution. As such, Flack was aware of the requirements of the Bank Secrecy Act's anti-money laundering provisions, Smith said in his complaint.

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