THOMAS R. MIHALEK
WESTFIELD – A city official was released on $500 cash bail yesterday after he was arraigned on 17 charges stemming from the misappropriation of family funds in 2008 and 2009.
Thomas R. Mihalek, 45, of 94 Falley Drive, who serves as chairman of the city’s License Commission, was charged with three counts of larceny of property valued more than $250 by a single scheme and 14 counts of uttering a false check after family members complained to police earlier this year that their brother had unilaterally liquidated a joint investment account without their knowledge or consent and had kept all the proceeds.
Det. Todd Edwards of the police department’s financial crime unit was assigned to investigate the complaints and reports, in a statement filed in Westfield District Court in support of an application for a criminal complaint, that Mihalek’s father had established an investment account with American Funds, a financial services company, to benefit his four children,
Edwards reports that Mihalek was the family’s point of contact with the company and “unilaterally liquidated the investments without the knowledge of the victims.”
As a result, 14 checks, totaling $69,652.86 were sent to Mihalek’s Falley Drive residence and Edwards reports that “Mr. Mihalek forged the signatures of the victims and deposited the checks into his business accounts and savings account.”
Edwards points out that Mihalek had a legitimate right to one quarter of the fund’s assets so each of his siblings suffered a $17,413.21(5) loss.
Edwards reports that all of Mihaleks’ siblings provided statements asserting that they “did not sign nor authorize to be signed” any of the disbursement checks and did not even know that the fund had been liquidated until early in 2012.
He reports that one of the victims said that she had spoken with her brother in February, 2012, and he admitted forging his siblings’ names on the checks. He told her that he “panicked” and needed the money, Edwards reports.
In his statement to the court, Edwards says “Bank records of Mr. Mihalek’s account showed signs of stress and lack of continued viability. After some fraudulent checks were deposited, significant payments were made to credit card companies.”
Mihalek appeared before Judge Bethzaida Sanabra-Vega for arraignment in Westfield District Court and, when setting bail, Vega listed her reasons for setting bail as “The nature and circumstances of the offense(s) charged” and “The potential penalty the defendant faces.”
The penalty for conviction of the larceny by scheme charges is state prison for not more than five years or jail for not more than two years and a fine of not more than $25,000.
The penalty attached to conviction of the uttering a false check charges is state prison for not more than ten years or jail for not more than two years.
Mihalek is represented by a Springfield attorney, Terrence M. Dunphy, who said “There will be no comment from the defense.”
As Mihalek has not been convicted of any crime and has not resigned his position on the License Commission, he is still eligible to serve. If he does resign or is absent from commission meetings, the commission can still function as long as both the remaining members attend and vote as a simple majority of the commission constitutes a quorum.
