Former Lackawaxen Township secretary arrested

Vera Moret
Posted 8/21/12

LACKAWAXEN, PA — There was a full house at the Lackawaxen Township meeting on December 15 following news that the former secretary was arrested the previous week on charges of misappropriating more …

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Former Lackawaxen Township secretary arrested

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LACKAWAXEN, PA — There was a full house at the Lackawaxen Township meeting on December 15 following news that the former secretary was arrested the previous week on charges of misappropriating more than $200,000 in funds over a 10-year period. Shawn Marie Roe, 54, faces six felony charges including theft, fraud and computer crimes.

Pennsylvania State Police were contacted in February of this year after Lackawaxen supervisors began taking a closer look at the township’s finances following Roe’s dismissal in September of 2013. Roe had been accused of submitting false information regarding her own overtime and travel expenses and had been slow in submitting requested financial statements for 2011 and 2012. Additionally, she had been slow to return the township’s laptop. When it was returned, it was found that she had attempted to erase the history. A full audit was then done by certified public accountant (CPA) Brian T. Kelly of Carbondale, and a computer technician was hired to retrieve the information on the laptop.

Roe, of Lackawaxen, allegedly set up a PayPal account that linked to the general fund account in the Lackawaxen branch of Honesdale National Bank. There were then 277 charges made to that account that totaled $93,629.18. Additionally, she had use of a township debit card with which personal transactions reportedly were made in the amount of $32,563.32 to Wal-Mart, CVS, Kmart, cell phone providers, restaurants and grocery stores. There were also checks made out to cash and excess payroll checks made out to Roe.

Lieutenant Christopher Paris of the Blooming Grove State Police Barracks attended the meeting, as well as the lead investigator in the case, Trooper Mark Pizzuti, and they outlined the case. Township solicitor Anthony Waldron, board chairman Robert Cocchi and treasurer Richard Krochta explained the new procedures put in place to avoid the repetition of such an event and to regain the public’s trust.

The overriding theme in public comment was the desire for greater accountability and professional auditing in the township’s finances. At last month’s meeting, the supervisors adopted a new policy in which all township checks will be signed at the monthly meetings to ensure transparency. All financial information will be kept on site in a filing cabinet, and all monies in a new safe.

The debit card and PayPal account shave been cancelled, and the township’s computers are to remain on site at all times. While all checks always had to be countersigned, the officials agreed that there was not sufficient diligence in double checking finances, and excess trust was placed in Roe during her tenure of 13 years. Krochta said that he is now comparing all payments against receipts prior to signing checks. Previously, the secretary had been signing her own paychecks as well, and this practice has been eliminated. The current secretary handles none of the finances.

Consistent auditing by a professional will be done on a regular basis as well. Yearly audits were performed, but not by a CPA. The concept of perhaps initiating a resident committee to review finances was floated. All recommendations regarding changes in how finances are handled will be made public. However, the audit that implicates Roe cannot currently be made public, as it is evidence in the criminal investigation.

The lost funds are expected eventually to be recouped. Currently, it is unknown if Roe will be required to pay restitution should she be found guilty of the charges. However, it is a state law that all treasurers be bonded for $500,000, and the insurance carrier for Lackawaxen Township has already been notified of the investigation and charges. Despite the apparent loss of funds, the 2015 budget has been approved without any tax increase.

Pizzuti said the investigation is ongoing; the assumption is that Roe acted alone and no other individuals have been implicated. While there is a five-year statute of limitations on the charges against Roe, investigators are moving ahead on the theory that the irregularities constitute an ongoing pattern of behavior, and charges will cover the full 10-year period. Roe was held at Pike County Correctional Facility on $25,000 bail, which has since been posted. Anyone who believes he or she has information regarding the case should contact the Blooming Grove Criminal Investigation Unit at 570/226-5718.

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