YMCA and Hermitage Little League theft charges sent to Common Pleas Court

Apr. 24—FARRELL — Theft and related charges were held over to Mercer County Court of Common Pleas in the case of a former official from the Shenango Valley YMCA and Hermitage Little League accused of stealing about a half-million dollars from both organizations.

Robert David States, 41, of 2165 Saratoga Drive, Hermitage, was charged in November by the Mercer County district attorney's office with theft, access device fraud and misapplication of entrusted property and property of government or financial institutions.

At his preliminary hearing Tuesday before District Judge Mary Ann Odem, five counts of theft, access device fraud and misapplication of entrusted property and property of government or financial institutions charges were withdrawn. The balance of the charges — three counts of theft and access device fraud — were held over to Common Pleas Court.

The charges that were withdrawn were with prejudice, meaning that the commonwealth cannot bring those charges back.

Christopher Capozzi, defense attorney, said after court that the remaining charges were recognition on States' part that the burden of proof at this hearing is very low and the rules are weighted in the favor of the commonwealth in the sense that it is instructed to believe the witnesses and weigh the evidence as though it were true.

"Robert States had no intent at any time to deprive either the Hermitage Little League or the Shenango Valley YMCA of any property," Capozzi said.

District Attorney Peter C. Acker had said that authorities have done a lot of investigating concerning this case. He had said the deeper they dug into it, the more involved it became.

During the hearing, Capozzi asked the judge if one of States' bond conditions could be lifted. States is out of Mercer County Jail after posting $100,000 bond.

One of the conditions of his bond was that he is not allowed on Hermitage Little League property. States has a child who participates in the Hermitage Little League. Capozzi asked if that condition could be lifted.

After the assistant district attorney, Mercer County detective and a representative from the Hermitage Little League discussed the issue in private, the Little League representative agreed to lifting the condition, which Odem then did.

States was CEO of Hermitage Little League from Jan. 1, 2019, through Feb. 28, 2022, when he was dismissed. He also served as president of the Little League Association from May 14, 2019, through March 4, 2021.

He was an official with the Shenango Valley YMCA prior to August 2022, when the agency's management resigned and the YMCA was placed in a regional management arrangement with YMCA centers in Grove City and Franklin.

The DA's office said the majority of the thefts took place through fraudulent credit card transactions and fraudulent bank check transactions.

This incident was found when YMCA board members discovered the organization had no financial, bank or IRS statements on record, causing significant financial issues with the organization. The Little League Association's current president informed Hermitage police and the district attorney's office of the issues.

Detectives said States drew 39 unauthorized checks on the association's account. Fraudulent credit card transactions totaling $100,000 accumulated through two YMCA business credit cards.

Detectives accused States of making fraudulent purchases totaling $11,758 at Walmart for food, diapers, eyewear and household items. The purchases also included a $450 gift card at a local restaurant, several purchases at local restaurants, bakeries, pharmacies, convenience stores, auto repairs shops, golf supply stores, DoorDash purchases and medical and dental providers.

Charges on the two credit cards included amounts of cash, which was deposited into the YMCA bank account to meet payroll when funds were depleted. The cash charges totaled $85,347 over a three-year span.

The investigation also alleged that States wrote 27 fraudulent checks for $40,060 to the Little League Association from the YMCA bank account in an apparent attempt to reimburse money he had previously stolen.

States also is accused of failing to pay $66,918 in funds withheld from employees' paychecks for tax payments to multiple withholding entities, and of depositing YMCA revenue directly into his personal bank account.

Detectives said he issued payroll checks totaling $56,638 in excess of his salary for the three-year period he was CEO.

Detectives also found that States took out a high-interest loan for $20,000 in 2022 in the YMCA's name. The YMCA defaulted on the loan, resulting in a civil judgment against the agency in Mercer County Court of Common Pleas.

He is also accused of issuing 24 unauthorized bank checks for $60,370 to the YMCA to replace revenue he was stealing from that entity. Detectives found 15 fraudulent Little League business checks were made payable to States or cash totaling $11,820.

States further transferred $10,600 in unauthorized funds in 2019 from a Little League savings account to the general checking account without board approval. Little League records show about $27,000 in unauthorized PayPal transfers from 2019 through 2021 and credited to the Little League checking account from an unknown credit source. The total amount of revenue from the Little League Association is $109,773. States did not receive a salary from the association.

Detectives also found that a 95-year-old Hermitage victim tried to set up a scholarship fund for underprivileged youth and met with States about it. They gave $52,500 for the scholarship fund to the YMCA but the fund was never established.

States' next court date is set for June 25 in Common Pleas Court.

EDITOR'S NOTE: Defendants are presumed innocent until proven or adjudicated guilty in court.

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com