New Fairfield accepts settlement from ex-employee
By John Pirro, Staff Writer
Published: 07:00 p.m., Monday, March 15, 2010
NEW FAIRFIELD -- The Board of Selectmen has agreed to accept a $50,000 settlement from a former recreation department employee who admitted improperly keeping money intended for the town, in exchange for a promise not to prosecute her.
Barbara Coelho, who worked in the Parks and Recreation Department for more than 10 years, most recently as the assistant director, resigned in early January after the money was found to be missing.
Under the agreement, which was approved unanimously by the selectmen on Feb. 25 and signed by Coelho and her husband, Steven, restitution will be made in full by April 16, or they must pay 10 percent annual interest on the balance. The settlement is secured by mortgage on the Coelhos' home, which allows the town to foreclose on it if the money isn't repaid on time. The property is appraised at $213,000, according to town records.
Officials on Thursday declined to say over what period the money was taken, or how they determined how much was missing.
The settlement also requires the Coelhos and the town to "keep the terms of this agreement confidential to the extent permitted by law," unless the payment is not made.
A copy of the agreement was obtained by The News-Times from a New Fairfield resident who filed a Freedom of Information request for it.
Part of Coelho's duties in the recreation department included collection of fees from activities, events and programs sponsored by the recreation department. Many of those fees were paid in cash, officials said.
The agreement the Coelhos signed said Barbara Coelho"wrongfully took, obtained and withheld such property ... with intent to deprive the Town of New Fairfield of the property and appropriate the same to herself ..."
First Selectman John Hodge said the missing funds were discovered as a result of an audit of the recreation department accounts, but he would not disclose what sparked the financial review.
Hodge also refused to say how the amount of missing money had been calculated, or to discuss why the town opted to accept a financial settlement rather than referring the case to law enforcement authorities for a criminal investigation.
Selectman Monika Thiel said Hodge and Finance Director Jay Waterman brought the matter to the board's attention in January, and it was discussed in at least one special meeting before the vote was taken last month.
"There was justification provided" for accepting restitution rather than pursuing a criminal investigation, Thiel said. But she said she couldn't discuss it further, she said, because it occurred in executive session and involved a personnel matter.
"I felt it was more important to recoup the money for the park and recreation programs," Hodge said. "I'm confident the town has been made whole."
Attempts to contact other town officials, including Waterman, Recreation Director Steve Merullo and several other commission members last week were unsuccessful. The Coelhos have an unlisted telephone number and also couldn't be reached.
One recreation commission member who was contacted,Mark Lamanna, said he was shocked at the news. Lamanna, who's been on the board for three years, said he assumed Coelho's resignation in January was simply the result of a difference of opinions between her and Merullo.
Commission chairman Sean Loughery also announced at the meeting that cash would no longer be accepted for payment in the recreation department office and that Hodge was planning to reorganize the department.
"We were supposed to have an executive session at our (last) meeting ... and we probably would have found out about it then," Lamanna said.
But that meeting was canceled for lack of a quorum.
Contact John Pirro
at jpirro@newstimes.com
or at 203'731-3342.
