Jul 29, 2014
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Woonsocket's Insurance Company To Cover $200,000 Of Embezzlement Losses

Solicitor, Mayor update Council during Monday meeting.

Woonsocket's Insurance Company To Cover $200,000 Of Embezzlement Losses Woonsocket's Insurance Company To Cover $200,000 Of Embezzlement Losses Woonsocket's Insurance Company To Cover $200,000 Of Embezzlement Losses

The city's insurance company has compensated Woonsocket for $200,000 of $389,000 the city discovered missing last year, Mayor Leo Fontaine told the City Council Monday.

On Oct. 12, 2011, on embezzlement charges. She was accused of stealing approximately $389,000 between 2004 and 2010. Arruda retired in August 2010.

On Sept. 8 Woonsocket Police arrested City Treasury Clerk Michelle Giguere, charging her with Unlawful Appropriation (over $1,000) and Computer Access for Fraudulent Purposes. Police charge she stole more than $7,000 from city coffers during her time at City Hall.

Councilman Roger Jalette asked for an update on the cases at the beginning of Monday night's meeting. City Solicitor Joe Carroll told him Arruda and Giguere would be in court for pre-trial conferences on the charges in late June at the earliest.

Fontaine said the city had been reimbursed $200,000 for the larger of the two embezzlement cases. "We've recieved the full cap, which unfortunately was not the whole amount that was lost," Fontaine said. Carroll said the city may be compensated for more of the theft during sentencing of Arruda, assuming she is found guilty, when restitution could be part of the discusssion.

The Woonsocket Call reports that the city decided to only pursue the larger of the two claims with Axis Insurance Company, since multiple claims could hike the city's insurance premiums.

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