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  • Volunteer steals nearly $100,000 from WK&S

  • Pertaining to all railroading subjects, past and present, in Pennsylvania
Pertaining to all railroading subjects, past and present, in Pennsylvania

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 #1268449  by mst145
 
Volunteer steals nearly $100,000 from Wanamaker, Kempton and Southern Railroad, police say
Treasurer James Krause charged with theft, related offenses


Author: Ryan Hughes , Reporter, [email protected]
Published: May 06 2014 05:33:57 PM EDT Updated On: May 07 2014 05:58:36 AM EDT

ALBANY TWP., Pa. -
The wheels of justice are turning for a longtime volunteer of the Wanamaker, Kempton and Southern Railroad.

It's known as Berks County's hidden gem, but the railroad has been derailed by the appointed treasurer, said officials.

James Krause, 43, of Schnecksville, Lehigh County, is accused of stealing nearly $100,000 in a year's time.

"We're all there for one love and to find out that trust has been destroyed and violated is a real shame," said Oliver Blatt, president of Wanamaker, Kempton & Southern Railroad Inc., who added the accounts just weren't adding up.

According to court documents, Krause stole $36,471.41 from the company's checking and savings accounts between January and December 2013. They also state he bought $22,229.83 in fraudulent purchases from Home Depot and Lowe's on the business' account, and took $36,837.00 in ticket sales.

"It was always weird because he was like, 'Oh, money is no object. No problem, no problem,' so he talked about money a lot," said Kyra
Hendricks, who worked with Krause organizing events at the railroad.

The nonprofit just celebrated 50 years in business in 2013. It's run entirely by volunteers and offers scenic train rides to the public.

"It was really surprising. We've been trying to get in touch with him for a couple of months and he hasn't responded," said Arian Hungasai, who owns Wanamakers General Store at the end of the tracks.

Krause didn't answer the door at his house on Tuesday. Court records show he also pleaded guilty to child pornography charges in 1999. Blatt said he had no idea, but Krause is no longer a volunteer.

Now, officials are trying to get the gem back on the right track.

"The railroad is still going to be there. We're still going to be operating trains and we're going to recover from this," said Blatt.

Blatt said new procedures have been put in place for their accounting and the hiring of volunteers to help prevent this from happening again. He said Krause's alleged actions are not what the railroad stands for, and he hopes people will continue to ride.

Krause was arraigned Monday on theft and related charges, according to court records.

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 #1268716  by carajul
 
How do you not know that $100k is just 'missing'??? I know how much $ I have in my bank acct all the time. I'm sure taking $5 here $10 there no one would notice. But $100,000 in ONE year !?!?!? Aparentley no one was looking at the bank account. And how did this idiot think he would get away with it? Using credit cards is a friggin paper trial.
 #1268727  by Dick H
 
I understand that many tourist railroads and rail museums run
on a shoestring financially. That said, they should spend the
necessary funds for an annual audit by an accredited accountant.
Also, all expenditures should have to have the approval of at
least two officers in writing, access to credit cards should be
carefully scrutinized and credit card bills reviewed by at least
two officers monthly, prior to payment.
 #1268950  by philipmartin
 
That the guy is a crook isn't surprising. There is no shortage of them and they like treasurer's jobs. What surprises me is that the railroad could take in that kind of money with it's little rides, (I live near it.)
 #1269056  by nrkrupp
 
Hopefully the organization has a bond on this guy and they may get some of the funds back. This is a very painful lesson the Board of Directors have learned. What is surprising is that this crime happens regularly.
 #1269170  by Ken W2KB
 
charlie6017 wrote:What a scum.......that's all I can add. I hope he's prosecuted to the fullest extent of the law.

Charlie
Besides the possible criminal action, the IRS has been known to assert income taxes due for the funds stolen.
 #1269215  by charlie6017
 
Ken W2KB wrote:Besides the possible criminal action, the IRS has been known to assert income taxes due for the funds stolen.
I never thought of that. Well!! I hope the IRS goes right ahead and levies these taxes. I would venture to guess he'd have a
difficult time paying back all those taxes.

Charlie
 #1269285  by joshuahouse
 
I'm guessing there was no bond on the guy, given they don't seem to have run an even basic background check. If you've plead guilty to possessing child porn it tends to show up in those. And how, in a town as small as Albany Township did his neighbors not know about that?