Former Moro Township Official Pleads Guilty to Fraud

Donald R. Flack, 77, of Moro, Illinois, who served as the Moro Township dupervisor, pled guilty to wire fraud and structuring transactions to avoid reporting requirements today in federal court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Flack faces up to 20 years in prison on the wire fraud charge and up to five years in prison on the structuring charge. Both charges hold the possibility of a $250,000 fine and three years of supervised release after prison term. Sentencing is set for January 3, 2014.

Evidence revealed in court showed that Flack was an elected official and employed as Moro Township supervisor since 2001. Moro Township is a governmental unit in Madison County, Illinois. As Moro Township supervisor, Flack was required to accurately report the finances of the township to the township board, to the township citizenry, and also to the Illinois Comptroller’s Office.

In approximately 2006, Flack began unlawfully taking money in excess of his authorized salary from the Moro Township account believing that he could repay the money. Flack claims he borrowed the money to make a personal investment with a large return promised. Flack was planning to repay the township. Flack wrote checks to himself out of the township account disguised as “office expenses.” The amount of funds misappropriated is approximately $700,000.

The prosecution is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.