Former rescue squad leader
says don't blame him
A financial audit of the Lexington Rescue Squad’s books
cites “waste, abuse, neglect, bad management and poor judgment” under
the leadership of former Captain Cole Montgomery.
But while the audit found evidence of a “material breach of fiduciary
responsibility” by Montgomery, it did not find evidence that the former
captain used the squad’s money for personal gain. On that basis, the
auditor said he did not recommend that the city seek a state police
investigation or criminal prosecution.
“There is a difference between irresponsible or reprehensive behavior
and activities that should be prosecuted,” wrote David B. Hawkins, the
auditor, in a letter to City Manager Jon Ellestad.
Ellestad confirmed that City Council will not pursue any further
investigation into questions of spending.
“I don’t know if it completely clears [Montgomery], but it does clear
him of any illegal activity,” Ellestad said.
Montgomery, who resigned last September, said that he was not the only
one to blame for the squad’s overspending.
“I have one vote just like everyone else on what the crew does,” he
said.
Since he left the squad, Montgomery has kept quiet about the reasons
behind his resignation. But in an interview with The Rockbridge Report,
the former captain said that he was simply fed up with all the false
accusations and rumors surrounding his leadership.
Out of respect to the squad he kept his “mouth shut” as members on the
squad tarnished his reputation, he said. Montgomery also said that he
believed resigning was his only option once the rumors began.
“There was nothing I could do,” he said.
Raetz and Hawkins, an accounting firm in Lexington, completed the audit
Nov. 13.
The audit also revealed that under the former captain, discretionary
spending was five times the average amount. The normal annual
non-capital spending has been about $15,000.
Spending on recreational holiday activities – including a trip to Kings
Dominion – amounted to $9,580 in the last fiscal year.
New equipment and gear for the dive team, including $49,286 for wet
suits and a $19,800 trailer, contributed to the majority of these
expenses. The squad formed the team in response to the drowning of
16-year-old Charles Volpe at the East Lexington dam last year.
From July 1, 2006, until last month, the squad spent $168,799 on the
team, most of it in capital assets.
But Montgomery said that the spending was necessary. The city would not
fund the team and the squad was forced to dig into its own funds. The
city has not been supportive, he said.
“You don’t get any respect for what you do.”
But Ellestad said that City Council did not see a need for a dive team,
especially since the sheriff’s office already had one. He called the
idea a “duplication” and a “waste of money.” Ellestad also pointed out
that no other rescue squad in the county articulated a need for a dive
team.
Montgomery’s departure in September followed the resignation of the
squad’s treasurer, Carman Camden. In her letter of resignation, Camden
blasted the former captain and cited her frustrations in preparing
information for the annual audit.
Camden accused Montgomery of holding the August business meeting while
she was on vacation and of purchasing items without the squad’s consent.
Montgomery denied accusations that he purchased items without the
consent of the squad and said that he told his first lieutenant to
inform Camden about the August meeting.
Camden would not comment on her resignation or on the results of the
audit.
But Camden was not the only member who left the squad this year because
of tensions with the former captain. Last May, Guy Holstein, a former
first lieutenant with the squad, demanded that Montgomery resign.
In a heated letter, Holstein said that Montgomery failed to fulfill his
duties as captain, accusing him of purchasing items without the consent
of the squad. He also accused Montgomery of having sexual intercourse in
the squad building and using the squad’s vehicle for personal reasons.
Montgomery booted Holstein off the squad in a meeting Holstein was not
made aware of.
The former captain called accusations made against him “lies.”
Holstein could not be reached.
Last month, City Council passed an ordinance stating that donated funds
since 2000 to either the rescue squad or the fire department were now
property of the city. The city would have the authority to use that
money exclusively for an emergency department. The ordinance was a
response to the squad’s failure to renew its nonprofit status. Under the
new ordinance, the captain must also report directly to the city
manager.
Ellestad said that the new arrangement has strengthened the relationship
between the city and the rescue squad. The city wants to work with the
volunteers to make the squad as productive as possible.
“We’re working very well with the current officers,” he said.
Squad Captain Thomas Clark could not be reached for comment.
Upgrade plan for firefighters
Lexington Rescue Squad
Produced by Washington and Lee journalism students.
Lead supervisor: Prof. Brian Richardson
Reporting supervisors:
Technical supervisor: Michael Todd