Published: October 30, 2009 10:22 pm      

Former chief pleads not guilty

Charges stem from alleged siphoning of bingo funds through fire dept.

Catlettsburg — The former Catlettsburg fire chief pleaded not guilty Friday to siphoning off funds from bingo games run by the fire department.

Danny W. Cornette, 34, was arraigned in Boyd Circuit Court, and entered not-guilty pleas to five counts of theft by failure to make required disposition.

Judge C. David Hagerman set a tentative trial date of Dec. 10 for Cornette. He also appointed public defender Sam Weaver to represent Cornette after Cornette told the judge he had no means to hire an attorney.

Hagerman also lowered Cornette’s bond from $4,000 to $2,500 and told Weaver he would review it again in a couple of weeks if it turned out Cornette wasn’t able to make that amount.

Cornette was arrested Monday by the Boyd County Sheriff’s Department on a warrant stemming from a grand jury indictment returned Oct. 23. The indictment was the result of an investigation launched in February by the Kentucky Department of Charitable Gaming. The state agency initiated the probe after being alerted by the Catlettsburg Police Department to a possible problem with the fire department’s bingo games.

According to the indictment, Cornette failed to deposit receipts from the games at Kentucky Farmers Bank on five separate occasions between October 2007 and December 2008, and dealt with (the money) as his own.

The total amount allegedly stolen by Cornette was $43,648.85, the indictment states.

The department’s bi-weekly games, which were at the People Helping People bingo hall on U.S. 60 at Coalton, were suspended after the investigation was launched, and the fire department’s charitable gaming license was suspended and later voluntarily placed in escrow.

The Catlettsburg Volunteer Fire Department began using bingo proceeds to assist both the fire and police departments in purchasing equipment about 15 years ago.

In August, state regulators assigned the investigation to a special prosecutor, Floyd County Commonwealth’s Attorney Brent Turner.

Cornette tendered his resignation in March. City officials said at the time he was stepping down for health reasons — principally an accidental gunshot wound to the leg he suffered last year — and he was leaving on good terms. The city council appointed Deputy Chief Robert “Rusty” Armstrong to replace Cornette.

KENNETH HART can be reached at khart@dailyindependent.com or (606) 326-2654.