Kristin Chesnik, the finance officer for the Town of Paonia, is under investigation for misuse of public funds; she resigned from her position on Jan. 25 after a meeting with the town’s auditor Pete Blair and the town’s attorney Jim Briscoe. The case has been turned over the Delta County Sheriff’s Department and the district attorney’s office for further investigation.
In the midst of preparing the town’s 2010 audit, Blair alerted Mayor Neal Schweiterman that there were potential problems on Dec. 14, 2011. On Dec. 16, the two met with Briscoe to discuss the issue. From that conference, Chesnik was placed on paid administrative leave while Blair and his staff continued on the audit.
“There was enough information to put her on paid leave,” Schweiterman said, “but not enough information to do anything more at that time.” Chesnik is the only employee under suspicion, the mayor said.
He declined to get any more specific about the amount of money allegedly taken, but said, “The town will continue functioning and we have insurance that will cover this.”
Chesnik’s job included accounts receivable and payable, bookkeeping and creating the annual budget. She has been employed by the town since 2004, and was the finance officer since 2006.
There are some internal controls in place to double check employees, Schweiterman said, and added, “We’re revamping those, after this.”
In years past, Blair and his staff have urged the town council to strengthen its internal control process. “We did not implement those controls,” the mayor said. The finance committee on the council, comprised of trustees Lucien Pevec and Brian Ayers, was in the process of implementing some new policies, but has not yet completed the policies.
After the audit was finished and information gathered, the council met on Jan. 26 in executive session for 45 minutes, and voted (in open session) unanimously to submit the case for criminal proceedings.
The town has already begun advertising for Chesnik’s position. The ad ran the same day that she tendered her resignation; the ad requested applicants for an “anticipated position of bookkeeper.”
Current staff, and an assistant from Blair’s office, is taking over Chesnik’s duties until a replacement in hired. Schweiterman said that process would begin Feb. 9-10.
Detective Luke Fedler with the DCSO will be investigating the case and will work with Blair and Briscoe, Sheriff Fred McKee said. They will meet this week to begin the investigation.
