What happened
Following takeoff, the pilot observed rising Exhaust Gas Temperature (EGT) as the aircraft climbed to approximately 700 feet. While flying on the downwind leg of the traffic pattern, the engine lost power. The pilot was unable to return to the airport, and the aircraft collided with trees located short of Runway 33.
The investigation
An inspection of the aircraft revealed that water was present in the fuel system. Investigators found that the fuel filler cap seals and seats were cracked and deteriorated. Furthermore, a review of the aircraft logbook showed that Airworthiness Directive AD 84-10-01 had not been complied with; this specific directive was intended to prevent water contamination caused by leaking cap seals.