Norway voters agree to pay for embezzlement investigation

NORWAY — Last Thursday, just four days before Norway’s annual town meeting, 10 voters gathered in the town office for a special town meeting to clear the current year’s books.

By unanimous consent, these citizens agreed to draw $40,000 from the town’s $1.4 million undesignated general fund, to pay  “forensic audit” of town books in the wake of Deb Wyman’s embezzlement indictment.

Wyman, Norway’s former economic development director, was arraigned in Oxford County Superior Court April 20, charged with stealing more than $65,000 from grant funds under her charge.

To date, the town has racked up “around $30,000” in bills relating to the case from lawyers and auditors, said Town Manager David Holt.

Glenn S. Kersteen of G5 Consulting Services in Cape Elizabeth, was hired by Holt to comb through town accounts, looking for evidence of Wyman’s alleged graft.

“This is very expensive,” said Holt, “but the reasons that we do it are to assure the public that we are serious about finding out what the truth is, and so we can, accurately and to the best of our ability, ask for restitution and justify our insurance claims.”

Holt says the investigation is proceeding “in a plodding fashion,” and may be nearing an end.

“At this point, we’re not sure we want to spend $1,000 to find another $5,000 [possibly stolen],” he explained.

Denise Whitley asked why annual audits never picked up any wrongdoing, if, as Holt said, G5 has uncovered evidence of thefts from the town — currently attributed to Wyman — dating to the mid ‘90s. 

“I’m very concerned about the conduct of the public audits,” said Gene Shanor, pointing out that he was speaking as a Norway taxpayer, and not a reporter.  “It seems the town has spent money each year for 10 years to audit the books and they weren’t able to find this money that had been stolen.

“I think when we look at who has to pay, those auditors have to have some culpability,” said Shanor.

Holt defended the town’s longtime auditors, Gaisford and Hoisington of Norway — Now Hoisginton and Bean.

“Having no suspicion, it wasn’t found,” he said. “When someone steals, they do it in such a way as to hide it.”

“This was very good, very difficult to pick up,” said Selectman Les Flanders.  “Once the forensic auditors found the pattern, it seems easy, but it was not easy to pick up at all.  I think there’s probably very few auditors in the state who could have picked this up.”

Holt said thefts may date back to the beginning of Wyman’s tenure with the town, but he was only willing to “stand in a public room” and make accusations he had proof for.

Holt said later that Wyman’s alleged graft was uncovered by another town employee, who, after attending a state training session, decided she should send 1099 tax forms to downtown business owners who received community development grants.  Previously, those forms were only sent to the contractors who were hired to do the work.

“It was typical for her to use the names of people who did a lot,” said Holt.  “So if they did $30,000 worth of work on community development projects in a year, she might add on another $1,000.”

Wyman allegedly submitted separate receipts to the contractor, and then to the town, deporting the extra money in her own account.

“One issue is that Key Bank allowed deposits into an account of checks that were not made out to that individual,” said Holt.  “What’s the explanation for that?  I don’t know.  They haven't been able to give me one.  That’s pretty hard to pick up.”

Although Hoisington and Bean reportedly discouraged the employee from sending out extra 1099s, Holt says the longtime employee felt it was the right thing to do, and sent the forms out while Wyman was on a leave of absence unrelated to her later indictment.

When Art Gouin, owner of L. F. Pike and Son, received his 1099 invoicing work down to his building, he noticed that some of the items listed, such as roof repairs, had never been applied for, and never done.  He promptly brought his fishy looking document to Holt, who launched an investigation.

Holt says that if Wyman is convicted, the town will ask that she be required to repay all the money she is proven to have pocketed from town coffers, as well as the full cost of the investigation, to either the town, or its insurance company.  At this point, as much as $105,000 appears to be recoverable.  That figure is expected to climb by the time Wyman’s trial gets under way.

Voters at the special town meeting also agreed to appropriate $5,000 to cover a deficit in the town’s cemetery account. 

Norway contracts with the Progress Center to maintain most town cemeteries, while Scott Eicher, of Oxford, takes care of “a couple” others, plus the town parks. 

Holt said heavy rains last summer created a need for more mowings than he had budgeted for.