A person from Plymouth Borough who previously served as a leader in Kingston Township and Kingston has been accused of using public funds improperly while working as the manager for Newville Borough and the Newville Water and Sewer Authority in Cumberland County.
Fred Andrew Potzer, 62, was charged by the Cumberland County District Attorney’s Office with two serious charges of altering public records and access device fraud, and less serious charges of misusing government finances and tampering with public records. Potzer was released on $10,000 unsecured bail after being arraigned on Tuesday.
Potzer served as the manager of Newville Borough from 1994 to 2022. He was an administrator in Kingston Township from 1985 to 1988 and then as the Kingston administrator from 1989 to 1993.
Potzer resigned from the position in Kingston in June 1993, under suspicion of overspending and misusing funds, which resulted in the municipality accumulating a debt of $1.1 million.
Cumberland County District Attorney Sean M. McCormack announced the charges against Potzer after an investigation and a forensic audit of Newville Borough and Newville Water and Sewer finances.
“The criminal charges filed are primarily related to the actions Potzer took to conceal his mishandling of borough and authority funds. His actions have placed both the borough and the water/sewer authority in a significant financial deficit, which ultimately impacts the residents of Newville the most,” McCormack stated in a news release.
According to the criminal complaint:
After Potzer was fired from his positions, officials from Newville Borough and Newville Water and Sewer discovered irregularities in their finances, including a $50,000 unpaid electric bill.
An investigation and forensic audit allegedly revealed that Potzer created false treasurer and financial reports with the intention that the fraudulent reports would be accepted by the Newville Borough Council and the Water and Sewer Authority.
During an interview, Potzer explained that he was using Water and Sewer funds to cover borough expenses because the borough had no income, stating he was “robbing from Peter to pay Paul.”
Potzer stated during the interview that he was able to transfer and move funds between Newville Borough and Newville Water and Sewer because their checks were not labeled with their entity names, as per the complaint.
McCormack clarified that Potzer is not accused of using funds from Newville Borough and Newville Water and Sewer for personal use.
A review of Potzer’s personal financial accounts found no evidence that he took any funds for himself, McCormack stated.
