Report details how Hubbardston tax collector allegedly stole $500K
HUBBARDSTON – On the day Cynthia Washburn-Doane appeared in
Worcester Superior Court on embezzlement charges, officials released a
review detailing how the former tax collector allegedly stole more than
$500,000 from the town over a decade.
Ms. Washburn-Doane's appearance in court was brief and no action was taken. She is due to return to court on Oct. 25.
The 2014 independent review, compiled for the town in October 2014,
was released to the public Tuesday to fulfill a public records request
by The Gardner News. The report, written by certified public accountant Eric A. Kinsherf, laid out the embezzlement scheme in detail.
The report found that Ms. Washburn-Doane would take property owners' cash payments for herself, and the accounts for which the payments were intended would not reflect any payment made.
In the next quarter’s tax bills, she would then adjust the accounts for the payments she stole, to prevent those accounts from becoming delinquent. She would apply cash payments from other taxpayers to the delinquent accounts, so they would appear paid and up-to-date. In some cases, she applied fake payments in “dummy batches” that she later deleted from the town’s accounting software, leaving no record of the transactions. She told town officials that she kept a separate, accurate list of taxpayers in 2013 who were behind in paying their tax bills, so only those who were delinquent actually saw their properties move into tax title, the report said.
Misappropriated cash and checks were applied to bring accounts current at the end of each year, the report said.
“Had the former tax collector’s scheme continued undiscovered, the former tax collector would have needed to misappropriate and misapply this sum of $540,000 against those accounts for which tax payments were received, but not posted,” the report said. “This is the amount that the former tax collector admitted to stealing from the town.
“It should be noted that the actions taken by the former tax collector described above were taken with respect to the 2013 and 2014 records provided, when the scheme was discovered. This report does not address whether the same actions might have been taken by the former tax collector for the years prior to 2013, for which she provided no records or records have since been destroyed,” the report said.
She resigned from her post as tax collector in May 2014 after 25 years on the job. Her resignation came after auditors from Scanlon & Associates of South Deerfield noticed that the town's tax collection rates were much lower than they should have been.
Ms. Washburn-Doane was subsequently indicted
on charges of false entries in corporate books, larceny over $250 by a
common scheme, and fraud or embezzlement by a town officer.
In a subsequent independent review, auditors said she admitted to stealing nearly $540,000, but that amount did not include any money allegedly stolen before 2013. According to Worcester District Attorney Joseph D. Early Jr.’s office, Ms. Washburn-Doane allegedly embezzled money from the town from 2004 to the time she resigned.
According to an agreement she made with the town on May 28, 2014, Ms. Washburn-Doane consented to cooperating with an investigation of irregularities discovered in the town’s financial records. As part of the agreement, Ms. Washburn-Doane said she would disclose what she knew about missing tax payments, and provide documentation on the matter in her possession. She also agreed to pay the town $120,600 in restitution to help cover legal fees.
Ms. Washburn-Doane's appearance in court was brief and no action was taken. She is due to return to court on Oct. 25.
The report found that Ms. Washburn-Doane would take property owners' cash payments for herself, and the accounts for which the payments were intended would not reflect any payment made.
In the next quarter’s tax bills, she would then adjust the accounts for the payments she stole, to prevent those accounts from becoming delinquent. She would apply cash payments from other taxpayers to the delinquent accounts, so they would appear paid and up-to-date. In some cases, she applied fake payments in “dummy batches” that she later deleted from the town’s accounting software, leaving no record of the transactions. She told town officials that she kept a separate, accurate list of taxpayers in 2013 who were behind in paying their tax bills, so only those who were delinquent actually saw their properties move into tax title, the report said.
Misappropriated cash and checks were applied to bring accounts current at the end of each year, the report said.
“Had the former tax collector’s scheme continued undiscovered, the former tax collector would have needed to misappropriate and misapply this sum of $540,000 against those accounts for which tax payments were received, but not posted,” the report said. “This is the amount that the former tax collector admitted to stealing from the town.
“It should be noted that the actions taken by the former tax collector described above were taken with respect to the 2013 and 2014 records provided, when the scheme was discovered. This report does not address whether the same actions might have been taken by the former tax collector for the years prior to 2013, for which she provided no records or records have since been destroyed,” the report said.
She resigned from her post as tax collector in May 2014 after 25 years on the job. Her resignation came after auditors from Scanlon & Associates of South Deerfield noticed that the town's tax collection rates were much lower than they should have been.
In a subsequent independent review, auditors said she admitted to stealing nearly $540,000, but that amount did not include any money allegedly stolen before 2013. According to Worcester District Attorney Joseph D. Early Jr.’s office, Ms. Washburn-Doane allegedly embezzled money from the town from 2004 to the time she resigned.
According to an agreement she made with the town on May 28, 2014, Ms. Washburn-Doane consented to cooperating with an investigation of irregularities discovered in the town’s financial records. As part of the agreement, Ms. Washburn-Doane said she would disclose what she knew about missing tax payments, and provide documentation on the matter in her possession. She also agreed to pay the town $120,600 in restitution to help cover legal fees.
restitution to help cover legal fees.
ReplyDeleteWhy should it be the town has the ability to allow her to use stolen money to pay for legal fees. Would a drug dealer be allowed to keep the money when busted for his attorney cost. One more government solution the hard working public gets screwed by.
What about the amounts missing prior to the cooperation she gave. I wonder if they think the amount would be higher. This matter should be a criminal matter and turned over to the FBI for the town should not have any say over what happened under their governments watch. The word failure is the way this should be described.
Government failure. I bet the tax payers would say no to every prop 2 1/2 override in the future. I wonder what the audits here will show if they ever get done that is.