Hardwick Electric suffers loss of $1 million in possible embezzlement

Financial irregularities have just recently been discovered within the offices of the Hardwick Electric Department, it announced today, which may exceed $1 million over a period of more than 10 years. A full investigation is being conducted by the Department and other governmental agencies. Immediate action has been taken by the Department to protect assets, conduct an audit and evaluate all legal remedies to recoup missing funds. One employee has been removed from her position and administrative action will commence to formally terminate that employee.
The Commissioners have retained the services of Valsangiacomo, Detora McQuesten, a Barre law firm, to assist in all matters.
Despite this event, Hardwick Electric is still a very viable municipal utility. The line crew will continue to provide excellent quality of service to subscribers, the integrity of the local power grid will be maintained, capital improvements projects will continue and the management of the office will be maintained. Changes will be made to the financial management processes. Expert help will be sought in order to develop and implement these changes.
The staff of Hardwick Electric and HED Commissioners truly regret the occurrence of this event. Unfortunately, despite yearly audits by competent auditing firms, numerous detailed reviews of HED finance status by the Vermont Public Power Supply Association and the Department of Public Service, and the use of an industry standard financial practice, this event has occurred.
Going forward, Hardwick Electric will continue to cooperate fully with the Office of the U.S. Attorney and other governmental agencies and will aggressively pursue all legal avenues to recoup the misappropriated money. Hardwick Electric does have fraud insurance and expects the insurance to cover some, but not all, of the losses.
Hardwick Electric told Vermont Business Magazine earlier this year that it has annual revenues of under $5 million and employees 13 people.
Source: Hardwick Electric. 11.4.2010