Superintendent: Northborough-Southborough School Officer Stole $380K, Covered by Insurance

NORTHBOROUGH, MA — A former employee of the Northborough-Southborough school district allegedly embezzled $380,000 in funds over a two year timespan, the scheme ending on Feb. 29, 2016.

The former budget officer, Christopher P. Hoey, allegedly stole $383,602.05 starting in the fall of 2013. On Friday, Superintendent of Schools Christine Johnson updated the community on the incident.

Christopher P. Hoey, 34, of Stow, was charged with larceny over $250 by common scheme, embezzlement by a public official and uttering, reports NECN.

"Based on our forensic audit, the alleged perpetrator was given check writing and signage rights in the spring of 2013 on an account that was referred to as an impressed Northborough-Southborough Regional School District checking account," wrote Johnson. "This account was set-up in 2005 as a petty cash fund for operational expenses, such as postage and certified mailings. Reimbursements to this account were made by submitting receipts through the normal warrant process."

Before spring of 2013, only the treasurer and former superintendent had access to the account, the budget officer added in the spring of 2013. Johnson said that between the fall of 2013 and Feb. 29 of this year, there were a series of possible financial irregularities, in which the budget officer allegedly misappropriated checks, endorsed them, deposited them and converted them to cash.

"The frequency of deposits and check writing to this account increased, as the activity remained undetected," she wrote.

There were deposited checks that included vendor payments and payments that were customarily made from the Town of Northborough or Southborough to the Northborough-Southborough Regional School District.

On Feb. 29, Hoey was placed on administrative leave pending the outcome of further investigations.

After a forensic audit, Johnson reported that a request to recover the funds was submitted to Massachusetts Interlocal Insurance Association (MIIA). On March 30, the towns and school district received payments of: Town of Northborough - $13,573; Town of Southborough – $139,198.73; and Northborough-Southborough Regional School District - $230,830.32.

The District Attorney's office is conducting a full criminal investigation and MIIA is launching its own investigation.

"Our role in both investigations is to collaborate and support their work," wrote Johnson.