The speculation at this point is that funds were either embezzled or misappropriated. 

According to lohud.com, the Mahopac Volunteer Fire Department has confirmed a probe from the State Comptroller's Office.  The department originally blew off the allegations as "rumors."

Apparently in this past summer a discrepancy was noticed between the treasurers financial report and the audit of department finances. Carmel Town Supervisor Kenneth Schmitt estimated the loss could be as much as $5 million.

NOW THAT IS A LOT OF CHEDDAR.

If it turns out that someone embezzled these funds that person or persons is going to be in a world of hurt. I know a lot of Mahopac residents and they are tired of the bloated taxes they have to pay. If they find out that they were literally being robbed they may actually burn the fire house itself down.