Borough of Shenandoah Launches Fund Recovery Through Insurance Bond

The Borough of Shenandoah has launched a fund recovery operation, stemming from a forensic investigation tied to a former employee. An initial reimbursement of $40,000 is secured through an insurance bond, with an additional $60,000 anticipated. This effort aligns with insights from a forensic accounting report by Joseph Yanushefsky & Company and special counsel.

The $100,000 insurance bond was issued by Travelers Casualty and Surety Company of America, covering the tenure of former Secretary/Treasurer Anthony Sajone. The initial $40,000 installment addresses retiree life insurance discrepancies revealed by the forensic review. The remainder, $60,000, awaits completion and approval of necessary documentation by the insurance provider.

The report highlighted issues with the borough’s retiree life insurance policy originating from prior administrations. These discrepancies have led to potential obligations of approximately $240,000, including a $25,000 payment allocated to a former employee's estate. The borough seeks potential reimbursement for these transactions from the insurer.

Officials emphasize that this recovery process operates independently of investigations by the Pennsylvania Attorney General’s Office and the IRS. Borough Manager Mike Cadau regards the initiative as crucial for addressing historical financial issues. "This is a significant step forward in holding past actions accountable and recovering taxpayer funds," Cadau stated.

Council President Joe Boris acknowledged the investigation's integrity, dismissing public criticism regarding political motivations. The insurance bond recovery underscores the factual financial discrepancies underpinning the actions. Residents interested in viewing the forensic report can contact the Borough of Shenandoah for more information.