‘Suspicious’ Grant Spending Prompts Investigation In West Haven

WEST HAVEN, CT — An investigation is being launched after an audit of West Haven’s federal CARES Act expenditures found some that appear “improper” and “potentially fraudulent,” Mayor Nancy R. Rossi announced Friday.

Rossi, who is a certified public accountant, said that she personally reviewed many of West Haven’s CARES Act expenditures and came across “several large expenditures that cause me great concern.”

The city’s CARES Act expenditures will be audited by two independent accounting firms, according to Rossi.

Rossi said that if the investigation proves any wrongdoing and fraudulent activity, she will “demand anyone involved be held accountable and prosecuted to the fullest extent of the law.”

“If anyone is found guilty, they should go right to jail,” Rossi said.

Rossi made the comments during a news conference posted to the city’s YouTube channel.

“As a certified public accountant, it is my ethical and professional responsibility to disclose this issue to our residents as we move forward with a thorough investigation and audit,” Rossi said. “The city was awarded $1.2 million from the federal CARES Act in 2020 to address the impact of COVID-19 and to help our community recover from the pandemic. After reviewing the expenditures, I suspect that some of these funds may have been diverted and not used for the purpose for which they were intended. A thought that sickens me.

“Having found this irregularity, it is my responsibility to report it.”

Rossi said she spoke with the city’s independent public accounting firm, which agreed that the transactions are “suspicious” and need further investigation.

“I assure all our residents that if the investigation proves any wrongdoing and fraudulent activity, I will demand anyone involved be held accountable and prosecuted to the fullest extent of the law,” Rossi said. “If anyone is found guilty, they should go right to jail. We will use all options available to recover any funds not used for their intended purpose and make the City of West Haven whole.”

She said the two independent accounting firms will collaborate with law enforcement agencies, including the Office of Policy and Management’s requests to gather records for their audit.

“Also, I will be asking the City Council for approval and funding of a forensic audit,” Rossi said.

Rossi also said she couldn’t elaborate on the review process or any details that could “negatively affect this investigation or outcome.”