Wiscasset Town Clerk Sandy Johnson was arrested last Thursday on a class B charge of theft by deception related to an undisclosed sum of money believed to be connected with motor vehicle registrations.
Town Manager Arthur Faucher issued the information about the allegation to the local press on Friday stating that he had placed Johnson on administrative leave Oct. 6. The news created a very sad and difficult time for all concerned, Faucher said.
Johnson had been town clerk for 12 and one-half years and well known in town. In her position, she was responsible for counter work, including receiving motor vehicle registration fees.
The state Dept. of Motor Vehicles (DMV) completed an investigation into the matter Oct. 9. Faucher said the DMV handled their investigation sensitively.
Faucher said he held a meeting of department heads to inform them the town had severed Johnson’s employment in connection with alleged “questionable accounting practices” that occurred in areas for which Johnson has been responsible. Faucher said there is no information indicating involvement of any other employee or individual.
“Because of the limits of personnel law and the fact this matter has been referred to law enforcement officials, I will not comment further regarding Ms. Johnson,” Faucher said.
Faucher said any reaction or statement from Johnson is a matter for law enforcement and that the town awaits the report from the auditors before releasing information on the exact amount of money involved in the allegation.
To date, there has been no final audit report from Wiscasset’s auditors, certified public accountants R.H.R Smith.
Johnson was arrested and booked on the charge at Two Bridges Regional Jail Oct. 9. She was released Friday on $20,000 bail. She is scheduled to appear in Wiscasset District Court on Dec. 9 at 8:30 p.m.
Corrections Administrator Mark Westrum said the charge falls under Title 17-A of the Revised Maine Statutes, Section 3541B, which carries a possible maximum sentence of 20 years incarceration.
Auditors are continuing the investigation into the charge and plan to go back as far as they are able in the records, but meanwhile the DMV has announced that it is not going to press charges.
So far the auditors have been focusing primarily on motor vehicle excise taxes but intend to include all other records, according to Faucher.
Faucher said the town office uses the computer program TRIO, which Wiscasset adopted for its accounting program around 2004-2005. Faucher said it would be difficult to go back further, since the town office used a different program before that.
“Auditors are still working to get a complete assessment of any irregularities and will continue to work until they have developed as complete information as possible,” he said.
On Oct. 9, Wiscasset selectmen went into executive session to discuss the matter with attorney Linda McGill of Bernstein & Shur. The board took no action after the session.
Faucher said the town has $250,000 insurance coverage for any lost revenues if that is the case and Johnson is bonded should the allegation be confirmed in the investigation.
However, he said the special audit RHR Smith is doing is not covered by insurance, but it could be sought as restitution if Johnson is found guilty in a court of law. The town is cooperating fully with local law enforcement, Faucher said.
As standard procedure, police, DVM, and town auditors advised Wiscasset officials to change all locks at the town offices, as well as the safe combination. The changes were completed Oct. 10. Also, the town took out whatever passwords and user names were on the TRIO program and gave new security assignments for staff members involved with finances.
Faucher has instructed town employees to refer any questions from the press or public to him rather than commenting themselves.
“I ask you all to refrain from gossip and speculation, which could in some cases expose you personally and/or the town to liability,” he said.
