Nearly all of the Oxford Village funds that went missing in 2010 are back in the municipality’s coffers thanks to insurance.
Last week, the village received a $20,062 check from the Michigan Municipal League’s (MML) Liability and Property Pool for the claim it had filed regarding these funds.
This check, combined with $865 the village previously received from another insurance carrier, means the municipality has now been reimbursed for nearly all the missing monies, according to village Manager Joe Young.
A forensic auditor hired by the village in 2012 determined that $20,594 in property tax money from 2010 was missing.
In addition to this, the village had previously determined that $583 in police department funds had gone missing in 2010.
Insurance carriers have now reimbursed the village for $20,927 of the $21,177 in missing funds. Young explained the $250 difference is the village’s deductible.
Whether or not anyone will be held responsible for the missing money is still unclear.
The forensic auditor named Marion Patricia Paad, the village’s former deputy clerk, as ‘a person of interest? with regard to the missing property tax money, but no criminal charges have ever been issued against her concerning these funds.
In fact, to date, no criminal investigation has ever been conducted with regard to the $20,594 in missing tax funds.
According to village attorney Bob Davis, ‘the first goal was to make the village taxpayers whole? through the municipality’s insurance coverage.
With that accomplished, Davis told this reporter he plans to discuss potential next steps at the 6:30 p.m. Tuesday, March 10 village council meeting.
‘At this juncture, the village has not decided, definitively, what they’re going to do,? he said. ‘I’ll take (council) into a closed session and review with them the evidence that we have.?
Davis said it’s largely going to come down to one thing ? does the village have ‘evidence that would sustain a viable criminal prosecution (against) somebody.?
‘We had to show a certain level of proof to get the (insurance) carrier to pay,? he said.
But he noted that’s a ‘far cry? from having proof ‘beyond a reasonable doubt,? which is necessary for a conviction in a criminal case.
‘It’s a much higher standard of review,? Davis said.
Davis noted given the insurance carriers have now paid the village’s claim, they ‘may institute some action to get (their money) back? from the responsible party.
Paad, who was terminated in March 2011, was charged criminally in connection with the $583 in missing police funds along with more than $3,300 in allegedly embezzled property tax payments from 2006.
She faced five felony counts of embezzlement by a public official, but in April 2012, an Oakland County Circuit Court jury found her not guilty of all charges.
Eight months later, Paad filed suit against the village, along with Young and Councilwoman Maureen Helmuth, in U.S. District Court for $2.5 million. She claimed lost income, mental anguish and emotional distress.
In her suit, Paad contended she had expressed concerns to village officials, management and employees about ‘improper spending/use of taxpayers? money, and/or volunteers stealing taxpayers? money.?
Because of this, Paad claimed she was retaliated against by being falsely accused of embezzlement ‘to try to cover up (the) defendants? unlawful conduct.?
The MML, which was the village’s insurance carrier during the time frame in which the claims were set, decided to settle with Paad. The village council agreed to go along with the decision, but, as Davis previously pointed out, it was really the MML’s call.
In December, Paad received a $300,000 settlement check from the MML, which was responsible for paying the entire amount.
The claims against Young and Helmuth were dismissed as part of the settlement.