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August 1st 2012: The FBI is Involved

August 1st 2012: The FBI is Involved

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Published by WhiteRabbitt
A media report on the City's ongoing forensic audit which now involves the FBI.
A media report on the City's ongoing forensic audit which now involves the FBI.

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Published by: WhiteRabbitt on Mar 26, 2013
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11/19/2013

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FBI getting involved in Saugus audit
Wednesday, August 01, 2012
By Matt Tempesta / The Daily Item
 
SAUGUS
 
Town Manager Scott Crabtree said the
Federal Bureau of Investigation islooking into alleged financial violations uncovered in a series of recent forensic audits
.
I did have a meeting today with a representative from the (Inspector General’s) office
and the FBI
,” said Crabtree during a Tuesday night meeting with the Board of Selectmenand Jim Powers of accounting firm Powers & Sullivan. “They are
looking at this, and have
records and documentation. They are aware and involved, and are reviewing the material.”
 Powers took the board and the 11 Town Meeting members in the audience through the 12-page procurement audit, which is the third and final audit. Powers detailed what he
described as $700,000 in “questionable purchases and costs” along with $1.3 million in
purchases not in compliance with purchase and procurement laws.
The period of review for this was the last two years, not the last nine years, which
makes you wonder,” said selectman Debra Panetta
.
Selectman Stephen Horlick pointed to one part of the audit as being “just crazy.”
 The audit states that after Caruso Construction built a wheelchair ramp, the former Town
Manager had Caruso’s pe
rformance bond waived before the job was complete. The auditstates Caruso then submitted an invoice for $7,400 for debris removal, which was alreadyincluded in the original specifications of the job.
“The vendor knew they got their bond back and they still put additional money in,” saidHorlick. “They cashed that check for something they should have done for free.”
 In a phone interview after the meeting, former Town Manager Andrew Bisignani said that
was “simply not true.”
 
“We never returned any bond,”
 
said Bisignani. “I had no knowledge of returning a bond
before the job was completed. The invoice in the audit report had nothing to do with the
ramps and was for removal of debris from some other source.”
 
Bisignani also said the auditor is making “legal
 
conclusions for which he’s not qualified or

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