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Community Corner

Edelson Accused of Misappropriating Town Funds

I received a copy of a Press Release from John Michaels - who has chaired the town Board of Finance for over 40 years.  In this release - Mr. Michaels provides details of an apparent misappropriation of funds by our First Selectman Edelson.

The following is a text copy of Mr. Michael's Press Release.

Press Release

John A. Michaels

147 Mansion House Road

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Southbury, CT. 06488

203-525-0199

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The following information is based on an investigation I conducted during the past few months.

On April 11, 2013, First Selectman Ed Edelson contacted via email Chair Jennifer O’Neill of the Economic
Development Commission (“EDC”) and requested that the EDC pay approximately $1,000 for costs of a
May 8 reception at the United States Capitol following a showing of the film “Home of the Brave.”

Edelson and O’Neill exchanged emails in which O’Neill made inquiries about who would be in attendance
and why Edelson believed that the costs were within the scope of the EDC’s authorized appropriation. On
May 24, upon learning that only Democratic legislators were present and that the private sector was in
no way involved, O’Neill stated that the reception costs did not seem to be targeted at economic
development, but offered to meet with the First Selectman to discuss further. There was no response.
On June 4, she contacted him again and asked whether he was withdrawing the request for funds.
Edelson responded: “After reviewing your note, we decided it was better to charge this to the same
account we used to support the film. So no need to include that in your final figures.”

Later that month, O’Neill realized that she had not received in the mail the EDC’s monthly budget report
for either May or June, as has been the standard practice. She visited the Treasurer’s office and asked for
the most recent report. She was provided with documentation including:

(1) an invoice entitled “Southbury Historical Society (Blumenthal & Murphy)” in the amount of
$2,002.50 for a reception of lemonade, iced tea, cheese and crackers and mini sandwiches, held at
the Senate Capitol Visitors Center;

(2) a check from the Town dated May 16, 2013, in the amount of $1,000.00, payable to
“Southbury Historical Society” and referencing the reception;

(3) a withdrawal dated May 16, 2013 against the EDC budget for $1,000.00; and

(4) a handwritten request written and signed by Edelson dated May 15, 2013, for payment of
$1,000.00 to the Southbury Historical Society from the EDC account “to promote Southbury as a
tourism destination, partially funded reception at U.S. Capitol for showing of Home of the Brave.”

The Town Treasurer returned to the office, and she informed him that the amount should never have
been taken from the EDC budget because it had not been approved by the EDC. Because O’Neill was
concerned that there may have been an unauthorized use of funds that were her responsibility, she
contacted me as the Chair of the Board of Finance for my advice and provided me with copies of the
relevant documentation. I then began my investigation.


In the meantime, O’Neill again did not receive a budget report, this time for August, and she once more
visited the Treasurer’s office. This time, the report revealed that the amount of $1,000.00 had been
restored to the EDC account on June 30, 2013, with a mysterious notation of “Escrow Funds - Recording
Correct Historic Chg.” She provided this information to me.

I reviewed the relevant records and determined that when the amount of $1,000.00 was restored to the
EDC account, that same amount was taken simultaneously from the account for the Southbury
Celebration. Based on my investigation, it appears that no request for payment was made to the
Southbury Celebration Committee, and the Committee did not approve the payment of funds for this
purpose.

I believe that the details outlined above constitute a violation of Town practice and appear to violate the
Southbury Town Charter. Under the Charter, the First Selectman has no authority to make expenditures
from funds appropriated to a Board or Commission under the Town budget, with the exception of “cases
of necessity” for the repair of highways, bridges, sidewalk, water and sewer systems, and “care of the
Town needy.” None of these exceptions apply.

The budgetary procedures set forth in the Charter establish strict, specific parameters in which Town
officials must operate. I am troubled that the First Selectman appears to have acted in contravention of
the proper Town procedures, not once, but twice. Based on my investigation, it appears that the First
Selectman did not obtain approval from the appropriate Commissions prior to making payments from
their accounts. . In private business CEO’s have significant freedom to act but in our local government we
have strict procedures and rules which must be followed to assure openness and transparency in by our
elected officials. As Chair of the Board of Finance for more than forty years, I am deeply concerned by
the results of this investigation and what appears to be a pattern of noncompliance with financial
protocols by the First Selectman

Documentation substantiating all of the above facts is available for review. Thank you for your careful
attention to this matter.

 

Regards,

 

 

 

John A. Michaels

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