House sale to help reimburse Shelton from 2014 embezzlement case

Sharon Scanlon, former assistant finance director for Shelton, stands with her lawyer, William Dow, to hear her sentence at Milford Superior Court in Milford, Conn. on Thursday, January 30, 2014. Scanlon received a 12-year sentence, suspended after 4.5 years, on larceny and forgery charges.

Sharon Scanlon, former assistant finance director for Shelton, stands with her lawyer, William Dow, to hear her sentence at Milford Superior Court in Milford, Conn. on Thursday, January 30, 2014. Scanlon received a 12-year sentence, suspended after 4.5 years, on larceny and forgery charges.

Brian A. Pounds / Hearst Connecticut Media

The city will soon receive a large repayment from the former assistant finance director who stole $914,000 in municipal funds and was jailed in 2014.

Corporation counsel Fran Teodosio told the Board of Aldermen, at its meeting Thursday, that Sharon Scanlon — who was sentenced to jail in 2014 for theft of funds — will soon be selling her home in Shelton and a portion of the funds will come back to the city.

Along with the jail sentence, Scanlon was ordered to make restitution, which should involve almost $231,000 — based on theft insurance and retirement plan forfeiture covering the rest. Finance Director Paul Hiller said, according to the probation officer in Derby, Scanlon still owes $229,225.14, which is to be paid in full by Aug. 8, 2022, for her to comply with the terms of her probation.

Teodosio said the home sale will be sold for $396,123, with Scanlon entitled to half of the funds, the remainder going to her spouse. The aldermen voted Thursday to release the city lien on her home, which allows the sale and payment of $123,055.97 to be made to the city.

These additional funds mean Scanlon still owes the city $106,379.09, Teodosio said.

Hiller said the city had already received $500,000 during fiscal year 2014 from the city’s insurance carrier. The city also received $139,399.36 from Scanlon’s attorney from forfeiture of her pension funds under state statute, again during fiscal year 2014, Hiller said.

Prior to the pending sale of the house, Scanlon had paid $1,875 out of pocket to the city, Teodosio said.

Scanlon, the former assistant finance director accused of stealing $914,000 in city funds, was sentenced Jan. 30, 2014, to four-and-a-half years in prison to be followed by five years of probation. She was facing a jail sentence from three years to seven years, based on a plea agreement reached in 2013.