Metro-East News

July 10, 2014

Former Moro Township supervisor gets probation for stealing public funds

Former Moro Township Supervisor Donald Flack, who pleaded guilty to wire fraud in connection with taking $700,000 of township funds and, was sentenced Thursday to six months in a halfway house, 30 months home detention and 30 months probation.

Flack, 78, pleaded guilty to one count of wire fraud and one count of structuring transactions to avoid reporting requirements in September 2013.

U.S. District Court Judge Michael Reagan imposed the sentence.

Flack, who is suffering from terminal cancer, will receive a chemotherapy treatment on July 25, then turn himself over to a halfway house to serve a six month sentence, according to federal authorities. After his release, he must serve 20 months of home incarceration. Under home incarceration, Flack can only leave his home for medical treatment.

Flack also agreed to pay $1,000 per month in restitution.

In 1996, Flack bought $2,500 worth of petroleum stocks and was promised "a big pay day." In 2006, he began taking money from the Moro Township accounts, such as the township fund, the road and bridge fund, and the oil fund, according to court documents.

"The large promised return on the investment never happened and (Flack) realized that he did not have the funds to pay the original misappropriated funds," the court document stated. "In desperation, (Flack) began searching on the Internet of promised ways to make money fast."

Flack participated in "advance fee" schemes, where he was persuaded to pay money (an advance fee") in order to obtain a larger sum of money that never materialized, the document stated. Flack made wire transfers around the world, including Nigeria, South Africa and Nicaragua, using different Western Union agents and directed money to various people around the globe.

From 2006 until May 2013, Flack took about $700,000 of the township's money, the investigation found. These payments were disguised as "office expenses."

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