City Investigating Theft of Public Funds, Asst. Finance Director Resigns [Update]

Update, Aug. 24, 3 p.m.

Police Chief Joel Hurliman confirmed Friday that state police and the state attorney are launching a criminal investigation in the Shelton Finance Department.

"The most recent financial audit revealed some irregularities and prompted an administrative investigation, which included a more detailed audit that found there was a distinct possibility of misappropriation of funds," he said.

Hurliman said a review of the policies and procedures within the Finance Dept. is also underway and that city officials "are confident the Connecticut state police will do a thorough and complete job."

Hurliman also said Mayor Mark A. Lauretti has reported the amount taken to be in the hundreds of thousands of dollars, but he hasn't seen any facts or figures he can personally attest to. The CT Post says a source close to the investigation estimates $218,000 and that the amount is likely to go "much higher."

The locks at have been changed. Calls to Lauretti Friday were not yet returned.

Original Story

August 24, 2012

"The City of Shelton is currently investigating the theft of public funds in our Finance Department. City Auditors and law enforcement personnel are involved in this ongoing investigation.

The City has accepted the resignation of Assistant Finance Director Sharon Scanlon as it relates to this matter.

Finance Director Louis Marusic has been placed on administrative leave and outside personnel have been put in place to provide oversight in the Finance Department. Louis Marusic is not a suspect in this matter.

The City is currently pursuing various avenues to obtain full restitution. A more comprehensive public statement will follow completion of the investigation.

Based upon advice of Counsel, we cannot provide any more details at this time."

Thank you,

Mark A. Lauretti, Mayor