Cops: Treasurer Spent Stolen Money on Strippers

Authorities allege the former treasurer for the Middletown Athletic Association (MAA) stole in excess of $24,000 from the youth sports group organization his time overseeing the books.

Robert Butts, 53, of Homestead Road in the Levittown section of Middletown, was arrested Friday morning on charges of theft by deception and receiving stolen property. He is currently free on $25,000 unsecured bail.

Butts was appointed treasurer for the group in January 2010, police said. An investigation began after discrepancies in the MAA’s finances were found in late 2012 when MAA did not have sufficient funds to do field maintenance work, court documents state.

Butts had been unemployed at the time of the theft.

Investigators found that Butts used the MAA’s lone debit card in 2011 and 2012 to spend nearly $4,500 at Scruples at the Oakford Inn, a Bensalem gentlemen’s club. According to police, workers at the strip joint said Butts often bought food, alcohol and lap dances using the stolen cash, usually withdrawn at ATMs in the area of the club. The 53-year-old used the card to pay for a “Champagne Dance,” police said. Authorities detailed the $150 package, which included a private dance from a stripper while the customer sips on champagne.

Butts’ sister loaned him $10,000 in 2012, $2,000 of that was blown at the strip club, according to investigators. He also brought in some income through a short-time employment at UPS.

Court records show that Butts’ Levittown home was in danger of being foreclosed on. Lender Fannie Mae attempted to foreclose on his home several times in 2011, however, Butts used bankruptcy protection to void losing the house, police said. On Feb. 29, 2012, the day his house was to be foreclosed on, authorities say Butts wrote a $20,000 cashiers check to save his home.

During the following months, Butts provided the MAA board with documents which misrepresented the actual finances, police said. Authorities said he had full control the MAA finance, except for checks, which had to be signed off by the board.

In January 2012, Lower Southampton Township hired Butts as their finance director. Authorities said, despite working again, the 53-year-old made no effort to repay the MAA.

At one point, Butts’ wife withdrew money from a trust fund account in his son’s name in an attempt to gather enough money to cover the MAA bills, police said. They added that on a second occasion Butts withdrew $2,000 from another one of his son’s accounts.

Amid mounting pressure for full financial control from the board, Butts stepped down in August 2012, court documents state. By the time he left his post, the MAA account had dwindled from 121,433 to $110,047.

Butts suggested that board president to “cover” him if he “called it an investment or loan” in a text message conversation obtained by police. The board president said no, court records show.

Shortly after, a police investigation was started.

When a different board member confronted the 53-year-old about the missing money, he blamed it on a man who was making him launder money from the MAA. Police report those allegations have not proven to be true.

Through his attorney, police say Butts has been paying back the stolen money.

Derek Drennen, according to the MAA, currently serves as treasurer.

During a November 2012 Lower Southampton government meeting, then-Supervisors Chairman John McMenamin praised Butts for his help making the township’s 2012 budget. The chairman, who is now township manager, said thanked Butts for “bringing professionalism and clear insight into the numbers.”