The former general manager and treasurer of Wannamaker, Kempton and Southern Railroad, in Kempton, was sentenced to 11 and a half to 23 months in Berks County Prison and then five years of probation as well as being ordered to pay restitution on Wednesday, Dec. 17.
James D. Krause, 46, of Schnecksville, pleaded guilty to theft by unlawful taking and theft by failing to make a required disposition of funds in front of President Judge Paul M. Yatron of Berks County Court of Common Pleas.
Appointed treasurer in January 2013, Krause had access to checking and savings accounts as well as credit card accounts for Lowes and Home Depot, according to the Police Criminal Complaint filed in May 2014 at the office of Judge Kim Bagenstose in Hamburg. When he began as treasurer, the checking and savings accounts balance was $101,956 and by December of 2013 the balance was $15,081.66.
An internal investigation by shareholders showed missing funds of $31,498.81 from the checking account and $4,972.60 from the savings account. Fraudulent purchases of $6,925.61 on the Home Depot credit card and $15,304.22 on the Lowes credit card were also found. A total of $36,837 of cash received from ticket sales was also found missing. The total amount taken from the railroad during that time period was $95,538.24.
Krause has been ordered to pay $36,837 in restitution for theft by unlawful taking and approximately $58,700 for theft by failing to make required disposition of funds.
The thefts were discovered by WK&S President, Oliver Blatt, who became president later in 2013. The same year, the railroad celebrated its 50th anniversary with a special event at which Krause spoke on the big accomplishment and his hope for the railroad to have 50 more years.
Though the thefts were a big hit to the railroad financially, the volunteers pulled together and continued the railroad’s 51st year with traditional and favorite special events such as the Easter Bunny Express, Kids’ Fun Weekend, Murder Mystery, Harvest Moon Special, Pumpkin Patch Train, Santa Claus Special and more as well as regular train rides offered on the weekends in May through October. Volunteers at the railroad are preparing for the 52nd season and look forward to continuing to bring smiles to the faces of the train-riders.
For more on Wannamaker, Kempton and Southern Railroad, visit www.kemptontrain.com.