Ex-fire chief pleads guilty to embezzlement as ESD 1 funding still in jeopardy

In the U.S. District Court for the Eastern District of Texas, the prosecution read aloud the factual basis for Hohenberger’s criminal charges. Hohenberger testified that he did embezzle over $490,000 in funds to make 80 payments to personal credit card bills, take cash advances at casinos and pay for personal business expenses.

When asked if he had made false statements to the U.S. Department of Labor, Hohenberger denied this. U.S. Magistrate Judge Kimberly Priest Johnson reminded Hohenberger that he had already agreed that everything in the factual basis, including the part about him making false statements, was accurate.

Hohenberger initially doubled down on his denial, but later told the judge that yes, he had made false statements.

Upon sentencing, Hohenberger could face 10 years in prison and three years of supervised release. He would be required to pay about $540,000 in restitution and a little over $19,000 to individual firefighters. He would also be required to forfeit any property derived from his criminal conduct.

Johnson permitted Hohenberger to remain released on bond until his sentencing hearing, which had not been set as of Wednesday afternoon.

The emergency services district’s new chief, Ricky Vaughan, was present at the hearing. He called the situation “unfortunate” but said he was there to support the firefighters.

The emergency services district said in a news release that it remains committed to delivering excellent service to the public and it supports the personnel impacted by the situation.

Sam Johnson, president of the Argyle Professional Firefighters Association, told the Denton Record-Chronicle that Hohenberger’s guilty plea was “a long time coming.”

Johnson said Hohenberger’s actions caused the district to suffer substantial damages and it is still dealing with a funding deficit. The district could run out of funds to respond to all 911 calls in less than 90 to 120 days, the district’s Board of Commissioners reported.

Johnson said he hopes the court upholds the maximum sentence for Hohenberger and that the restitution is paid in full and quickly.

A news release from the association says firefighters have embraced the changes that have come since the Denton County Commissioners Court appointed new members to the district’s Board of Commissioners and since the Argyle Volunteer Fire District was fully absorbed into ESD No. 1.

But the district remains in the midst of an “unprecedented financial disaster,” Johnson said in the release, and the ESD and firefighters have reached out to Denton County commissioners and the county judge to develop a plan to recover.

“While the theft and deficit rest solely on the shoulders of former Chief Hohenberger, the responsibility to provide adequate and appropriate response to all emergency calls for help is shared by both the ESD Board and our County,” Johnson said in the release. “We call on local, county, and state officials to come together to establish a fund and plan to help our community recover now, before it’s too late.”