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LOUISVILLE, KY. (WDRB) -- A former McMahan Fire Chief has entered a plea deal on embezzlement charges. Paul Barth agreed to a 41-month prison sentence and to repay $190,000 to the Crusade for Children as well as $83,000 to the McMahan Fire District.
He appeared in Federal Court on Thursday for a change of plea hearing. He was indicted in April 2010 on 16 counts of fraud and money laundering. He resigned his position as chief in January 2010.
Barth is scheduled to be sentenced in October.
Federal officials back in April of 2010 said Barth opened a business savings account at National City Bank for the Crusade and he was the only authorized signature on the account. Prosecutors say he fraudulently withdrew money and overpaid his salary to pay personal expenses. Barth is accused of issuing 13 additional checks totaling over $40,000.
Secret Service agents said Barth charged more than $40,000 in personal expenses on the fire district's credit card, including $10,000 for property taxes on his fleet of collector convertibles. Agent Paul Johnson says Barth took personal trips and used the department credit card to pay for the bills. All told, federal agents say Barth embezzled and laundered over $300,000.