NORTH TEXAS (CBSDFW.COM) — A Kaufman County man who allegedly took out fraudulent loans in the name of his volunteer fire department has been charged with making a false statement to a bank.

Denny Mackey, the 68-year-old former treasurer of the Crandall Volunteer Fire Department, was arrested at his home in Richardson on October 4.

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According to the indictment, between May 2011 and September 2013, Mackey allegedly obtained tens of thousands of dollars from financial institutions by applying for unauthorized loans purportedly to be used for fire department purposes, unbeknownst to the fire departments.

An example, alleged in the indictment, detailed how Mackey fraudulently applied for a $75,000 loan purportedly for fire department expenses in 2013. He falsely represented to the bank that the money would be used to fund the salary of a full-time fire department employee – knowing full well that the volunteer force didn’t employ full-time staff.

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Shortly after the bank issued the loan, which he concealed from the fire department, Mackey allegedly withdrew more than $50,000 to a company he controlled.

The following year, the fire chief appeared before the Crandall City Council to report that the fire department had been forced to sell some of its trucks and equipment in order to pay off the fraudulent loan.

In 2014, Crandall Fire Department Chief Allen Cousins said to stay ahead of the debt owed to the banks they would have to sell a fire engine, a brush truck and a water tanker — almost half the department’s firefighting equipment.

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If convicted, Mackey faces up to 30 years in federal prison.

CBSDFW.com Staff