CUMBERLAND COUNTY, Pa. (WHTM)– A former manager for a Cumberland County borough accused of mishandling hundreds of thousands of dollars was in court.

Fred Potzer, of Newville, waived his preliminary hearing while in court Thursday on charges that accuse him of mishandling funds while he was the Newville Borough Manager, a position he held for 28 years before he was fired.

By waiving a preliminary hearing in Pennsylvania, a defendant acknowledges that the Commonwealth enough evidence to take him trial, and allows it to proceed through court without having the hearing.

Potzer is facing felony charges of tampering with public record/information and access device fraud. He’s also facing misdemeanors of misapplication of entrusted property and property of government or financial institutions, as well as tampering with public record/information.

Previous coverage -> Former Newville Borough Manager charged with financial crimes

An audit discovered 65 treasurer reports from Dec. 2017 to Nov. 2022 that were inaccurate.

The county District Attorney’s Office first learned of the mishandled funds after being notified by Borough Council and Newville Water and Sewer Authority about financial irregularities. Potzer worked for both entities before “he took ill in December 2022 and had not been into work.”

Money from the Water and Sewer Authority was used to cover borough payments, including buying a police vehicle, because there was no money coming in, Potzer told investigators.

Potzer indicated he was “robbing from Peter to pay Paul.” Investigators say that Potzer did not use any money for himself.

In December Newville Borough Council passed a 2024 budget that increased property taxes by 50%. It also increased the borough’s income tax and cut one of three remaining police officers.

Officials said they were $600,000 over budget and a forensic audit was underway.

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“We didn’t know why, and we still don’t know where the money went or how it was distributed but we know it was being improperly distributed intentionally,” said Borough Solicitor Marcus McKnight in December.

Potzer is on unsecured bail that was set at $10,000 and is scheduled to be formally arraigned on Aug. 12, online court records state.

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