Investigations Probe Accounting Practices in Westbrook, Connecticut

WESTBROOK - Both an internal and external investigation are underway to determine why a stack of uncashed bonding checks were found on the assistant treasurer's desk.

"Daily progress is being made," First Selectman Noel Bishop said, adding that the town immediately launched its own investigation into the matter.

The checks, which were found during the evening of Mar. 19 by Town Treasurer Darlene Jones, were intended as performance bonds submitted by applicants to the town's planning, zoning, and wetlands commissions.

Checks date back before Jones was elected in November on a platform of improving the accounting practices of the town.

Prior to that, Mary Beth Joyce who served as treasurer for 10 years admitted to residents this past October to a $375,000 budget omission after misreading a report regarding the town's debt service.

The New Haven Register reported that the value of performance bonds being researched totals several hundred thousand dollars.

However, the Register also reported that the town did not see a loss in money since bonds are returned to applicants when developers finish their work and in this case, they all have.

Upon the initial discovery, Jones deposited approximately $32,000 of valid checks since the rest had expired.

Bishop said the Office of Chief State Attorney Kevin T. Kane has launched a criminal investigation and has interviewed several town employees and commission staff members.

A spokesman said the office does not speak on cases that may or may not be under investigation.

According to the office's Web site, Kane is "the administrative head of the Division of Criminal Justice, the independent agency of the executive branch of state government that is responsible for the investigation and prosecution of all criminal matters in the State of Connecticut."

While they are working to determine whether illegal activity took place, the town's investigation seeks to determine what exactly happened and how to prevent a future occurrence.

At an Apr. 10 meeting, Bishop said that he met with Town Attorney Michael Wells, the chairmen of the Planning and Wetlands Commissions, Zoning Enforcement Officer Nancy Rudek, and Wetlands staff member Jerry Lewis, and Jones.

Both the Wetlands and Zoning Commissions have completed review of the performance bonds they issued between 2004 and the present while the Planning Commission is still reviewing their documents.

The commissions will reconcile their records with the treasurer and this could be a lengthy process.

A review of commission minutes indicate that in 2007, the Zoning Commission required $351,000 in performance bonds and released $60,260 while the Planning Commission required $76,800 in bonds and released $175,690.

Also in 2007, the Wetlands Commission set $128,800 in bonds and reduced existing bonds by $13,066.

To help in the effort to have better accounting practices, a proposal to increase the number of hours for the treasurer is being discussed.

Increasing staffing in the treasurer's office is not a new idea; however, as Bishop admitted that "we have been told in the audit for the past three years that we need a full-time financial director."

Bishop said once the town completes its investigation, it will hand over findings to the Chief State Attorney's Office.

While Bishop promised to provide "full disclosure of any internal findings" to the public, he said that the Chief State Attorney's Office "is not bound to make their criminal investigation public" and that it is "premature to say what their investigation would yield."