County Sheriff Susan Johnson said the probe is focusing on one suspect. She declined to name the suspect.

While Lower Currituck has submitted all missing records, Corolla was put on notice Wednesday and given an ultimatum: Either surrender all missing financial records or the county will cut off public funding. Corolla is not under investigation, however.

Corolla Fire Chief Marshall Cherry said the department's board members understand the county's position and will be working overtime to submit those records. He has called for a meeting between fire chiefs and county commissioners to discuss contract issues.

Commissioners Owen Etheridge and Paul O'Neal have said they are willing to meet with volunteers.

Crawford VFD member Tim Walters and Carova Beach's Kirch both argue the county is "punishing" all fire districts for problems with a few. Walters said he believes the county's actions suggest efforts to take over district operations. He said language in the new contracts make each district fire chief subordinate to County Chief Ruscoe and that sugges a complete county takeover of the districts.

"Scanlon came to a meeting (with volunteers) and stated there would be no changes to the contracts," Walters said.

Etheridge said Thursday county officials have been planning fire district policy changes for sometime. He said the board of commissioners supports volunteers and only wants to better manage public funds.

Likewise, Scanlon said fears of a takeover are unfounded. He said the county's combined $2 million budget must be managed by Currituck's finance office in order to "enhance services" to the public and ensure accountability.