Police: Former Eastern Derry fire chief, secretary stole $67K from department

Aug. 11--The former fire chief and secretary of the defunct Eastern Derry Volunteer Fire Company are accused by state police of stealing more than $67,000 from the department over two years period, forcing it to close.

After the department folded, the couple allegedly sold some of its equipment, including smoke protection masks, to pawn shops, police said.

Derrick L. Bollinger, 36, and his wife, Regina, 24, of Derry, were arraigned Tuesday on charges of theft, dealing in proceeds of unlawful actions, theft by failure to make required disposition of funds, theft by deception and conspiracy.

The couple surrendered at Derry District Judge Mark Bilik's office and were accompanied by their attorney, Michael Ferguson of Latrobe. They were released on their own recognizance, pending a preliminary hearing set for Sept. 2.

Police said the money was stolen from January 2012 through October 2014, essentially bankrupting the department.

Investigators learned about some of the Bollingers' alleged illegal activities from former Eastern Derry firefighters who saw their equipment for sale in pawn shops, according to the affidavit.

The couple took the money from the fire department's construction fund and used it for a $30,300 down payment on a pickup truck, Trooper Robert Harr of Greensburg alleged in the complaints.

The Derry Township supervisors tipped off state police to the fire department's financial problems a year ago when its leaders couldn't account for grant money, said Trooper Steve Limani. The supervisors wouldn't pay the fire department's annual insurance bill because they had no accounting for the money, and the department was forced to close on July 30, 2014.

"Most volunteer fire department companies take a lot of pride in how they do business and in their accounting procedures and have a lot of integrity. ... But this case raised a lot of red flags which were forwarded to us by township supervisors," Limani said.

Limani said supervisors had asked for a detailed accounting from the township's two fire companies, Bradenville and Eastern Derry, of $30,000 grants supervisors had given each the previous year for construction projects.

"One department, Bradenville, provided the detailed accounting, while (Eastern Derry) provided a one-page document that contained insufficient details of how the money was spent," Limani said.

Supervisors again asked for details, but Eastern Derry's officials still balked, then closed because they couldn't pay the insurance bill, Limani said. The department's two trucks were repossessed.

"At this point, that's when supervisors contacted us," Limani said.

Harr alleged in the affidavit that a review of the department's books showed numerous checks "for large sums" written by Regina Bollinger, as secretary.

A check for $40,000 was written Aug. 27, 2013, to D&G Construction Co., a company state police allege was set up by the Bollingers. The company was supposed to be renovating the fire hall along Route 982.

The same day that check was written, the Bollingers wrote a check from their construction company account for $30,300 to a New Alexandria car dealership for a down payment on a 2011 GMC pickup truck, police said.

When Harr questioned a dealership employee about the payment, he said Bollinger said he received a large amount of money after a family member's death.

When troopers confronted him about the $40,000 payment the fire department made to D&G, Derrick Bollinger told troopers it was for work he did at the fire hall, Harr wrote.

"...But when he was informed that the building had been examined and completely photographed, (Bollinger) admitted that he had meant to complete the work, and he only completed a minor portion of the work, not the $40,000 worth of work that was paid for," Harr wrote in the affidavit.

"In examining the entire building, and the work list, it appeared that the only work completed on the building as far as improvements was approximately nine sheets of drywall was hung and a little bit of plaster/paint was applied. No additional work had been completed," Harr said.

The Bollingers declined comment as they left Bilik's office.

Their attorney said the public "should not jump to conclusions" about where the money went as the case proceeds.

"In Western Pennsylvania, the accounting of volunteer fire departments can be very dicey. At this point, (the Bollingers) are contesting everything listed in the complaint. ... It could take a lengthy forensic accounting examination to piece this together," Ferguson said.

Limani said the state police investigation is continuing.

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