UPDATED: Former Berlin Administrator Faces Felony Charges, Denies Wrongdoing

UPDATED: Former Berlin Administrator Faces Felony Charges, Denies Wrongdoing
Jeff Fleetwood, who retired from his position as Berlin's town administrator this spring, pleaded guilty to embezzlement in district court Tuesday. File photo

BERLIN – Berlin’s former town administrator is facing felony charges of theft and forgery after a town audit revealed discrepancies.

Jeff Fleetwood, who served as Berlin’s town administrator from 2019 to spring of 2022, has been charged with six counts of forgery of private documents, theft $1,500 to under $25,000 and theft scheme $1,500 to under $25,000. The charges relate to discrepancies in Fleetwood’s leave balances, which he was paid for when he left Berlin.

“Investigators discovered between October 2021 and April 2022, an additional 240 hours of sick leave and an additional 80 hours of vacation leave were added to Fleetwood’s leave and earning statement,” a news release from the Worcester County Bureau of Investigation reads. “Investigators discovered that the total amount paid out to Fleetwood as a result of the additional leave was approximately $17,520.”

According to charging documents, town officials recently contacted police regarding potential fraud connected to Fleetwood, who retired as Berlin’s town administrator in the spring. When Fleetwood left, he was paid $98,942.96 for his current leave balances.

“Investigators were advised that during a recent audit, discrepancies were discovered involving Fleetwood’s leave balances,” charging documents read. “Fleetwood had a special clause in his contract that allowed him to be paid out for accrued sick leave. Investigators were advised an additional 240 hours of sick leave and an additional 80 hours of vacation leave had been added to Fleetwood’s leave and earning statement.”

Through an audit of the town’s payroll system, investigators were able to determine that six “fraudulent manual leave additions” occurred, according to charging documents.

The first occurred Oct. 20, 2021, at 2:29 p.m., when charging documents state Fleetwood added 100 hours of sick leave to his leave bank. Other changes to his leave bank occurred in December of 2021 as well as in February and April of 2022.

“Investigators were advised that Fleetwood only accrued 3.69 hours of sick leave per pay period and 9.23 hours of vacation per pay period,” charging documents read.

Upon retirement, $17,520 of what he was paid was fraudulently obtained, according to charging documents.

Investigators met with Fleetwood Nov. 4.

“Fleetwood denied manually changing his own leave balances,” documents read. “Fleetwood stated he was aware he had the ability to do so with his position as town administrator. Fleetwood stated that he has done this for other employees for legitimate reasons in the past. Fleetwood also stated that he accrued sick leave at a higher rate than other employees, which investigators confirmed was not true.”

According to court documents, the payroll system the town used, ADP, automatically updated accrued leave. Investigators were advised there was no legitimate reason for Fleetwood to manually adjust his leave balances.

Fleetwood has hired attorney Steve Rakow.

“We’re waiting for the state to provide discovery so that we can see what evidence the state has against Jeff,” Rakow said Thursday. “Regardless, Jeff maintains his innocence.”

News of the charges surprised many in Berlin this week, as Fleetwood spent more than a decade with the town before retiring in April. In 2019, he was appointed to serve as town administrator after Laura Allen was fired from the role. In 2020, the town extended his contract until 2023. Fleetwood told officials earlier this year he was ready to retire, however, and stepped down in April.

The Town of Berlin was quick to share news of the investigation, issuing a press release Monday. The release said that a question was brought to the town’s attention during the annual financial audit. A subsequent internal investigation revealed the suspected fraud, which was then referred to law enforcement.

“As stated in the town charter, one of the most important responsibilities of the mayor is to oversee the management of town resources,” Mayor Zack Tyndall said in the release. “As such, over the past two years, we have conducted reviews of existing policies related to financial transparency, controls, and the prevention of waste, fraud, and abuse.”

He continued, “We will continue to work collaboratively with the investigating authorities as they move forward with this case.”

Despite the charges, Fleetwood remains employed by the Town of Delmar. He was hired by his hometown in June to serve as town manager.

A statement issued by the Town of Delmar Tuesday said officials had limited information regarding the charges.

“While we understand that the allegations are serious, at this time, they remain merely allegations and Mr. Fleetwood is entitled to a presumption of innocence,” the statement reads. “The Town of Delmar believes in our legal process and intends to gather additional information as this matter progresses.”

The statement continues, “The mayors, commissioners and council members have met with Mr. Fleetwood and have determined that Mr. Fleetwood can continue to serve as Delmar’s town manager as this matter moves through the legal process and more information becomes available.”

A preliminary hearing in Worcester County District Court was initially set for Dec. 9 but is now listed as postponed/reset with a trial set for Dec. 13 at 9 a.m.

About The Author: Charlene Sharpe

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Charlene Sharpe has been with The Dispatch since 2014. A graduate of Stephen Decatur High School and the University of Richmond, she spent seven years with the Delmarva Media Group before joining the team at The Dispatch.