ALBION — New York State Police on Tuesday arrested a former Oswego County village official, charging her with felony counts of grand larceny and falsifying business records.
Margaret Bailey, the former clerk-treasurer of the now-dissolved village of Altmar, “stole more than $117,000 in public funds,” New York State Comptroller Thomas DiNapoli said in a Wednesday news release.
The arrest follows an audit and investigation that DiNapoli’s office conducted, his office said.
(Sponsored)
What is Fiducuary Liability and how does it affect you and your business?
Managing a company’s insurance needs can be complex and stressful. It doesn’t need to be when adding certain specialty insurance products, like fiduciary liability insurance. It protects the sponsoring company;
Financial Inclusion through Affordable and Safe Banking Products
Financial inclusion is the accessibility of useful and affordable financial products and services to all individuals and businesses. Financial institutions have made strides in advancing these practices, most recently in
The town of Albion discovered the misappropriation after officials requested assistance with obtaining village financial information during the dissolution process in March 2013, according to DiNapoli’s office.
The village, which had a population of 400 residents, was officially dissolved in June 2013, the office added.
The accused “brazenly ripped off” more than $100,000 from her community and nearly got away with it, DiNapoli said in the news release.
“She had keys to the cash register and went on a spending spree, even going as far as doubling her own salary without detection. This employee took full advantage of a system lacking proper financial controls. Our partners in law enforcement, Oswego County District Attorney Gregory Oakes and the [New York] State Police, acted swiftly on our findings of wrongdoing and sought justice for taxpayers,” DiNapoli said.
DiNapoli’s audit and investigation revealed that Bailey used various village accounts to write $106,000 worth of checks to herself or to pay her personal obligations over a period of five years, his office said.
They included $52,000 in voucher payments and $49,000 in payroll payments, his office said.
In addition, DiNapoli’s staff also determined that Bailey pocketed more than $9,000 in cash from property-tax payments, permit fees, and the sale of a village vehicle and falsified village records “in an effort to conceal her crimes,” the office added.
She also failed to pay the village her own personal property taxes in 2010, 2011 and 2012, according to DiNapoli’s office.
In addition, DiNapoli’s audit and investigation also revealed that Bailey misappropriated the equivalent of 67 percent of the village’s real-property tax levy during the 2011-12 fiscal year and the equivalent of 66 percent of the levy in the 2012-13 fiscal year, his office said.
The probe also found that Bailey altered village records in order to conceal inappropriate payments from the board and established an office supply credit account that she used for personal purchases.
The audit and investigation also found that the village board permitted Bailey to receive funds, make bank deposits, sign village checks, maintain the village accounting records, and process payroll with “little oversight,” DiNapoli’s office said.
DiNapoli recommended the Albion town board work with law enforcement to recoup the misappropriated funds.
He’s also recommending town officials consult with the former village’s insurance agent to determine if the town can submit a claim to recoup any of the losses, DiNapoli’s office said.
Contact Reinhardt at ereinhardt@cnybj.com
