The Denton County Emergency Services District No.1 (ESD1) Fire Chief was arrested on Thursday by the FBI for allegedly stealing money from the Argyle Fire Department’s pension fund, according to a news release. He reportedly spent the money at casinos, restaurants, and on personal credit cards.
Mac Hohenberger, 72, was taken into custody at the DFW International Airport as he was returning from Las Vegas. The former Argyle Fire Chief has been indicted for federal violations in the Eastern District of Texas, U.S. Attorney Brit Featherston announced in the release.
Following his arrest, the Argyle Volunteer Fire Department board voted unanimously to suspend Chief Hohenberger without pay.
Hohenberger, who became District No.1 Fire Chief after the Argyle Fire Department merged with Denton County Emergency Services in 2020, faces multiple federal violations related to the misuse and theft of funds from the Argyle Fire District Inc. operating account.
He also faces charges for allegedly making false statements to the Department of Labor.
Hohenberger pleaded not guilty to all the charges in court on Friday, and U.S. Magistrate Judge Kimberly C. Priest Johnson released Hohenberger on his own recognizance. A new court date will be scheduled in January.
In a rather unusual set of circumstances, the fire chief and the firefighters do not work for ESD1, even though that is the governmental agency that collects taxes to pay for fire services. Instead, ESD1 hires the private corporation known as Argyle Volunteer Fire Department to provide firefighting services.
Hohenberger helped form the corporation in 2004, according to documents from the Texas Secretary of State.
One year ago, Harold “Trey” Ring, a former engineer with District No.1, filed a lawsuit against the district and Hohenberger. The suit alleges that Hohenberger maintained all of the department’s finances, which led to employees not being paid for several days after payday.
Hohenberger was the sole administrator of the department’s 401(k) plan since at least 2010, according to documents filed in the suit. The arrangement raises questions about conflict of interest.
“I would bet that most of the people in Argyle had no idea that ESD No.1 didn’t have control over how Chief Hohenberger was spending the money,” attorney Eric Roberson told NBC 5.
Roberson is representing Ring in the lawsuit.
“It’s frustrating to me that there seems to be no oversight and no checks and balances.”
Speaking to WFAA, Argyle Mayor Bryan Livingston said he is “shocked and dismayed something like this is going on in Argyle.”
Argyle Professional Fire Fighters released a statement about the arrest on its Facebook page.
“We are monitoring today’s developments with federal investigators and local law enforcement officials, and we look forward to finding answers to the troubling questions raised by this matter,” the statement read.
Hohenberg spent one night in jail and pleaded not guilty at his arraignment. If convicted, Hohenberger could face up to 10 years in federal prison.