Shelton still getting reimbursement from 2014 embezzlement
SHELTON — The city is still receiving repayment from the former assistant finance director who stole $914,000 in city funds and was jailed in 2014.
City Finance Director Paul Hiller said that the city receives direct payments through the state Judiciary Department of $1,350, including $300 during this fiscal year, to cover repayment required of Sharon Scanlon, who was sentenced to jail in 2014 for theft of funds.
Along with the jail sentence, Scanlon was ordered to make restitution to the city, which should involve almost $231,000 — based on theft insurance and retirement plan forfeiture covering the rest. Hiller said, and 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.
Hiller said that 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.
The city also has a lien on her residence in the amount of $731,310.78, according to Hiller.
Board of Apportionment and Taxation members Michelle Laubin, Joe Knapik and Steve Guralnick, all Democrats, asked about the status of repayment during the board’s Feb. 6 meeting — the first such meeting in nearly a year.
In an email to Hiller in late January, Laubin said the board wants “an accounting of where things stand with your efforts to recoup almost half a million dollars in employee restitution that was embezzled by a city employee.
“It appears that only $300 has been collected from the ex-employee during the current fiscal year. If this is accurate, this seems dramatically below what is needed,” stated Laubin. “Many years have elapsed since these taxpayer funds were embezzled from the city, and the taxpayers have a right to know what we are doing to return them to the city for municipal use.”
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.