Argyle Fire Chief sentenced to prison for federal violations, ordered to pay over half-million in restitution

PLANO, Texas - The former Argyle Fire Chief has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Troy Mac Hohenberger, 65, pleaded guilty to multiple federal charges related to misuse and theft of funds from the Argyle Fire District, Inc. operating account, along with making false statements to the Department of Labor and was sentenced to 50 months in federal prison by U.S. District Judge Robert W. Schroeder, III on August 1, 2024. He was also ordered to pay $509,807.50 in restitution to the Argyle Fire District, Inc., and to forfeit $28,048.34.

According to information presented in court, Hohenberger stole money from the operating account of the Argyle Fire District, Inc., (which received federal funds in the form of Medicare reimbursements) and used over $490,000 of those funds to pay personal credit card bills. Those personal credit card expenses included cash advances at casinos, payments related to a family member's business in Hawaii, and other personal uses. The evidence also showed that Hohenberger failed to fund firefighter retirement accounts in the time required by federal regulations, embezzled or stole the funds, and made false statements related to the ERISA-qualified firefighter retirement plan on a form submitted to the Department of Labor. Hohenberger was indicted by a federal grand jury in November 2022.

"Today's sentence sends a message that my office takes seriously crimes related to the misuse, theft, and embezzlement of retirement- and pension-plan assets, particularly when such offenses are committed by fiduciaries, like the defendant, who are charged with protecting the assets of employee benefit plans," said U.S. Attorney Damien M. Diggs. "Because the defendant chose personal gain over his fiduciary responsibilities, he will now spend significant time in prison. We appreciate the diligence and partnership of the FBI and the Department of Labor in investigating these offenses and bringing the evidence of these crimes to light."

"Financial fraud is not a victimless crime. The defendant didn't just embezzle federal funds. He took money that was meant to fund the retirement accounts of his colleagues and selfishly spent it on himself," said FBI Dallas Special Agent in Charge Chad Yarbrough. "Thank you to our partners at the Department of Labor and the U.S. Attorney's Office for helping us hold this individual accountable for his crimes."

Deborah Perry, Dallas Regional Director of the Department of Labor, Employee Benefits Security Administration said, " I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector pension and health plans."

This case was investigated by the FBI and the Department of Labor - EBSA.

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