Library takes aim at recouping $270K from fired director

By Susan Bromley
Staff Writer
Brandon Twp.- The library has filed suit against former director Paula Gauthier, seeking damages in excess of $270,000.
The complaint filed with the Oakland County Clerk on Sept. 24 names Paula Jo Crowfoot Gauthier as the defendant. The plaintiff library has charged Gauthier with credentials fraud, fraud, and breach of fiduciary duty for claiming she had a bachelor’s degree as well as a master’s degree, when in fact she had neither. Gauthier was hired by the library in 2001 and was promoted to assistant director in 2005, and as director in 2006.
The suit seeks to recoup from Gauthier costs related to the fraud, including excess salary paid when promoted, $121,989; retirement contribution, $60,084; loss of state aid revenue, $35,028; universal fund not received, $26,751; fundraising losses, $7,467; unearned wages or sick pay, $7,128.78; forensic audit fee, $5,000; attorney fee, $5,000; and unauthorized pay raise, $1,840.
‘We tried negotiating without filing a lawsuit and we were not satisfied with the offer,? said Library Trustee Ann Schmid. ‘It wasn’t where we felt we could even negotiate to that point. Upon our attorney’s advice, we had waited long enough for a counteroffer and it was time to take action.?
Attorney Bob DeWitt is representing the library. In the suit, MCL 390.1604 is cited, which states, ?(1) An individual shall not knowingly use a false academic credential to obtain employment to obtain a promotion or higher compensation in employment; to obtain admission to a qualified institution; or in connection with any loan, business, trade, profession or occupation.
(2) An individual who does not have an academic credential shall not knowingly use or claim to have that academic credential to obtain employment or a promotion or higher compensation in employment.?
Gauthier resigned suddenly Nov. 14, hours before she was to explain to the library board why the library had not received state aid revenue for the past five years. Bill DiSessa, a Michigan Department of Education representative, said the library was denied state aid revenue because Gauthier did not provide the college transcripts necessary for a director overseeing a class 4 library, serving a population between 12,000-26,000, and thus was not certified.
Gauthier had claimed she had a master’s degree from the University of Michigan, purportedly earned in 1986, but the school had no records of her attending there. The board would later learn that while Gauthier attended Grand Valley State University, she never earned a bachelor’s degree from that school either, as she claimed she had done in 1973.
‘We felt that even though there isn’t a way to criminally charge her for credential fraud in Michigan, we felt that as a board, she hurt the library enough that we should be seeking damages,? said Schmid, who expects the court case to go into the new year. ‘If the outcome is favorable for the library, we will be ready to move on. It’s been a long cleaning up process, we will wrap things up with the conclusion of this case. I feel this is the right thing to do on behalf of the taxpayers. Everybody should be held accountable. Your actions are your actions, especially as an adult.?
The library board is attempting to move forward even as they take Gauthier to court. The board has received 10 applications for the library director position, and the candidates, Schmid said, have a wide range of experience, including those who are currently directors at public or academic libraries, as well as some with strong library supervisory backgrounds.
Board members will conduct phone interviews this week, followed by in-person interviews open to the public at 4 p.m., Oct. 12, and 6 p.m., Oct. 13, at the library, 304 South St.
Schmid was pleased with the number of candidates.
‘I think it gives us options in terms of what we are looking for in a director? strong budget and management skills, along with library experience,? she said.
Once a library director is in place, other positions will also be filled, including that of adult services librarian, left empty after the sudden death of Colleen Stringer at the end of July.
Other staffing changes are coming. The board approved a reduction in retirement benefits for library staff at their Sept. 29 meeting, changing the 401K plan from a 12 percent match to 6 percent, which Schmid said was at the top end of industry standards.
‘We were paying approximately $28,000 a year for full-time employee retiree benefits,? she said. ‘We want to keep costs down, we have to stay within our budget. We had to cut places, there is no way to go forward and not cut.?
Those cuts may hit the employees? healthcare insurance next. Schmid notes health insurance is changing daily and a new plan may not have benefits as good as the current plan, or perhaps higher deductibles.
She noted that while it has been at least six years since employees had a raise in salaries, there has been an increase in benefit packages. No lay-offs are planned.
‘It’s under discussion as to what we can fit in with staffing expenditures,? Schmid said. ‘How do we spend that money? salaries, benefits. We’re hoping to set that soon, so the new director comes in and it’s all set and solid.?