Ex-fire chief pleads guilty to fraud

CITY OF NEWBURGH – Former Newburgh fire Chief Mike Vatter pleaded guilty Friday to a federal charge of fraudulently receiving $95,106 in pension benefits after ending his retirement to lead the city’s department in November 2009.

Vatter, 57, entered his plea before U.S. District Court Judge Cathy Seibel in White Plains, three months after he was arrested and charged with wire fraud by the U.S. Attorney’s Office for the Southern District of New York.

Vatter, who earned $111,858 in 2015, faces up to 20 years in prison at sentencing on Sept. 9.

“Michael Vatter … cheated the public he swore to serve by double-dipping,” said Preet Bharara, U.S. attorney for the Southern District. “Today he admitted to his fraud, and he will be held accountable for his corruption.”

Vatter had worked for Newburgh’s fire department from 1980 until retiring in May 2000. He then earned a law degree and worked as an attorney before being named Newburgh’s fire chief in 2009.

In January, federal prosecutors charged him with wire fraud, accusing him of violating a state law that restricts to $30,000 the amount retirees can earn annually from public-sector employment before their pension benefits are suspended.

Despite an annual statement reminding retirees of the limit, Vatter continued to receive pension payments each month, wired from the pension system in Florida to his New York bank account, from November 2009 until July 2014, prosecutors said.

Two days after being indicted on Jan. 20, Vatter pleaded not guilty at arraignment before U.S. Magistrate Judge Bruce Davison and was released on $100,000 bond.

Davison ordered him to surrender his passport, restrict his travel and report for pretrial supervision as he transferred the case to Seibel.

His attorney, Ben Ostrer, told Seibel that day that Vatter had himself reported the overpayment to the state and arranged to repay the money.

“It’s a personal tragedy for Mr. Vatter and his family, who was already repaying the overpayment at the time he was arrested and indicted,” Ostrer said on Friday. “It’s unfortunate that the City of Newburgh, as a result, is deprived of his services.”

The day of the indictment, Vatter sent a four-sentence email to city officials telling them of the wire-fraud charge and saying it is “in the best interests of the city, the fire department and my family that I tender my immediate resignation.”

Newburgh Councilwoman Genie Abrams described Vatter as a “very amiable fellow – easy to get along with.”

“Personally, I’m sorry to hear that news,” she said.

lsparks@th-record.com