MILO, Maine — Jeffrey Gahagan has resigned as both Milo’s town manager and the treasurer of the Three Rivers Kiwanis club in the midst of an investigation by the Piscataquis County Sheriff’s Department, according to Piscataquis County District Attorney R. Christopher Almy.
Gahagan resigned as town manager on Friday, a day after resigning as the treasurer of the Three Rivers Kiwanis of Milo and Brownville. Milo Police Chief Damien Pickel said health reasons were the cause for Gahagan resigning as town manager.
The Piscataquis County Sheriff’s Department is investigating allegations that $45,000 was taken from the Kiwanis club while Gahagan was treasurer, according to Sheriff John Goggin.
“The case is very serious. The sheriff’s office is investigating it,” said Almy. “When their investigation is done, we’ll look at it and look at what charges are appropriate.”
A telephone message left for Gahagan was not immediately returned Wednesday evening.
Goggin and Lt. Bob Young are leading the investigation.
Goggin said he has seen Gahagan’s letter of resignation addressed to Kiwanis club president Jan Barton in which Gahagan allegedly addresses the missing money.
“The letter is part of an ongoing investigation. It is in the hands of the Sheriff’s Department that is conducting the investigation,” Barton said Wednesday.
She also confirmed that $45,000 is missing from the club’s treasury.
“Our club is saddened and dismayed about the circumstances that caused him to resign,” Barton continued. “The club is strong. We’ve served the community of Milo for 20 years in various ways and will continue to do that.”
Pickel said Milo has not yet named a new town manager. The selectmen will address the issue during their next meeting, he said.
Barton said the Three Rivers Kiwanis club will implement measures to make sure this doesn’t happen again.
“We’re putting some things in place to assure as much as anyone can — to make sure it doesn’t happen in the future,” said Barton.
Gahagan does not face any charges but he has retained Newport attorney Dale Thistle, said Goggin. Thistle could not be reached for comment Wednesday evening.
This isn’t good! The Kiwanis work hard to do good things for people and then to have this happen!
Yikes, I agree.
An instutution as savvy as the Kiwanis should know enough to require two signatures or some other simple financial control measure making this sort of theft more difficult.
Absolutely agreed. Given the large sum, theft must have been going on repeatedly for quite some time. Some simple safeguards could have prevented this.
what happened bdn to the 8 comments that where here awhile ago? Did you not like them? Do you only want the comments against Gahagan? I posted one that you took down that was neither for or against! Where did it go? Do you not believe in innocent until proven guilty anymore? Oh that’s right THAT doesn’t SELL the news does it?
I don’t know about this principal, but many sites do this for some reason. If they don’t meet some criteria, the comments are removed or “polled” like cash registers are twice a day. Any site, to me, should not do this, as all comments are important unless they do not match with the rules as posted. What is interesting to me, are just who are these people who sit and decide what comments stay and what comments go are supposed to be and what credentials do they hold to eliminate justified comments?
I had posted too and saw that all except one comment was left. Someone may have called to lessen the embarrassment to the family, the family is well known and liked. I am curious to know the real reason.. BDN?
The comments from StillExLaxing were not germane to the topic as he used this story to bash LePage for some reason. As usual, trolls like him ruin it for the rest of us.
There seems to be a trend of people in trusted positions committing monetary crimes…I have noticed a trend upward since about the mid 2000’s …and what do you know, about the same time Hollywood Casino came into the picture…I am sure this comment will be taken down by BDN, but the word on the street is HC has BDN in their pocket…do you ever see negative stories about Hollywood Casino? Of course not…the truth is, it might be a year from now or 5 years, but the truth will out…HC was not a good choice for our community, it is creating more problems than solutions…it’s that simple!
White collar fraud and theft has been going on as long as there have been white collar workers and has absolutely nothing to do with Hollywood Casino, what a stretch. Is there any topic or problem that you do not blame on this business? Most crime is stemming from the bad economy and just plain greed.
OOO
I think it is a trend that people in trusted positions have been getting caught, I think the crime has been going on for a forever. I don’t think Hollywood (Slots) Casino has anything to do with it.
If the folks who had been stealing were all spending the money at Hollywood Casinos you might have a point.
They weren’t.
You don’t.
Having worked in middle management in a bank a few years back, we had to take classes on ‘loss management’. The thing is, 80% of theft is internal (as opposed to consumers bouncing checks or bank robbing), and 80% of internal theft is in management (not the line staff).
The reason for this is two fold: one, the control systems are not in place creating opportunity. Two signatures required, for instance is a dual-control system. Separating accounting from operations is also important.
The second reason is the mindset of the person taking the money. Most often (not always), the perpetrator says to him/herself ‘I’ll just take some until my emergency is over then i’ll put it back.” Of course, that doesn’t happen and they get caught.
I think a lot of Maine organizations think to themselves “Agnes our bookkeeper is a good person, her family has lived here for 5 generations; we don’t need to protect ourselves from Agnes.”
When what they should be thinking is: “Agnes is a good person, we should respect and protect her by instituting control procedures that shelter her from accusation.”
Well said. Perfect perspective.
thank you
Say whaaaaaaaat?! This definately comes as a shock to me. Mr. Gahagan and his family are good people. As far as the health issues go, I hope for a speedy recovery. The Kiwanis money…well…maybe it’s just a clerical error?
A $45,000 clerical error? Good people don’t steal money, let alone money from a charity. Innocent people don’t resign when they’ve done nothing wrong.
he resigned because of health reasons not because of the case.
Or retain attorneys…
Definitely a big shock to us all in the area. But that’s a big clerical error!
it’ll all come out sooner or later………like BBBoo said “innocent people don’t resign when they have done something wrong”…….i’ve seen him more than once at Hollywood Casino…..???? shame on him………..
he resigned because of health reasons,try reading the article all the trough before commenting.
Town Manager Jeff Gahagan agreed. “At some point, people are all of a sudden going to realize, my God, we’ve got to do something [to continue to survive].”
This is another example of the head honcho not employing another person for the “check and balance” of financial and other records; generally a CPA-Attorney firm is best to be hired on to certify the audit on an ongoing, weekly, bi-weekly or monthly basis. Maine and Milo is not the only place in the world with this problem, believe me!
There are crooked CPA’s and lawyers, you do dont need to pay a lot to these professions to get good accounting. One CPA audit a year can cost 20 to 30 k, and you want to it weekly or monthly? Which one are you, business down? There needs to be controls put in place, but nothing so drastic as weekly audits, when would they actually have time to work?
Yeah, and you are right. But I was thinking about hiring a local Milo firm or at least hiring or utilizing another person in the accounting profession who already works for the City of Milo (or Town), and reduction in fees could be made. My husband uses a firm as an automatic certification of audit twice a year and the cost for him is high like you said. Those weekly audits are made automatically if your computer and accounting system is wired into each other and the high-value software is used.
There for the grace of God. He was a good man that had a very bad slip.
Why not make it a policy that anyone who handles large sums of money be bonded – dah! It shouldn’t make any difference whether you’re a treasurer for a local civic group or a town clerk, if you can’t pass the background check by the bond company why in heck would anyone want you handling money. Problem solved!
In the last decade Milo seems to have alot of trouble in their town managers job and their police Chiefs job.Maybe they need to have more checks and balances,and a better back ground check. This should be settled in court not in the public opinion.
Definitely an accountability issue. I know most churches have 2 PEOPLE count offering money and deposit it together.Gambling and/or drug use = people out of character.
milo is a crooked part of maine….
You know, saddly I have to agree. Milo has become a den of nepotism and drug abuse.
Is there are any people out there in the postion of authority who deals with money who can actually be trusted any more. I work in a position that I hold to a high standard beause I work with money, and would not put my life or my families life at risk for such a bad choice. I have been with the same company for more that 25 years and need my job and value my self worth as more than some one who does something like this. What a disappointment this person must be to their family to even have this hanging over them.
Remember the fight at that meeting to confirm and hire Jeff Gahagan over a more qualified canidate? Some serious wiggling took place as they moved to hire thier friend and “milo canidate.” Gahagan had been out of work for a while…maybe this took place before they hired him as manager?
I am surprised by this story, and will be watching closely, the investigation will surely have a few twist. I will form an opinion then. I’m not too sure about what has happened here, BDN story or not.
The judges , just don’t get it. Until the punishment increases, this will go on and is really, increasing.
You can steal and do very little time for the dollar amount. Look at Newburgh, She stole 1/4 of a million and got 18 months, Some say she will be released in 12 months. Where could she have made this kind of money ? The punishment did not fit the crime and still doesn’t……Again and again, the honest tax payers continue to lose and lose.
Very true Conley Raye. An example much closer to home for Milo and SAD 41 would be when J.S. stole all of that stuff from the school district years ago. He made next to nothing in restitution compared to what he stole and still kept his school pention.
Trust is not an internal control. NEVER NEVER NEVER allow one person to have control over all aspects of financial matters. What part of NEVER is not clear? Trust is not an internal control.
Milo the signs says friendly town. O ya friendly. and as crooked as a jay bird. Its where the KKK statrted and still is there in the back rooms of the friendly town. Dont stop on your way throw. drive like hell and be glad you made it
nfork, that is uncalled for. The KKK did not start in Milo. Sometimes the truth is stranger than fiction. Milo WAS the place where the Klan felt comfortable enough with popular support to hold their first daylight march. IIRC, they marched through town and ranted(burned a cross?) on the lawn of a family that went on to produce the best basketball player the town has seen-W. R.
JET BLUE !
I am really sorry to read this–I have known Mr. Gahagan for many years, and he has always been nothing but kind, caring, and always willing to help—-I really hope that what is being said, will turn out to be false!
Wasn’t he the bank manager or something in Milo before he became town manager? Maine Savings had better check their records! But he seemed like a nice guy.
I’m guessing Maine Savings DID check their records years ago when they decided to fire him suddenly.
Put whoever the perpetrator was in jail if only to make others perhaps think…
Please don’t judge him before we have more details. He his a good man with a lot of integrity. He has helped many people. There are many reasons people resign (e.g., health, not wanting to impede process of organization in midst of controversy, etc.). It’s not unusual for innocent people to retain attorneys either…. not in these litigious times.
Please don’t judge him until we know all of the facts. He is a good man with a lot of integrity. He has helped lots of people. People resign for many reasons other than guilt (e.g., health, not wanting to impede progress of organization, etc.). Innocent people DO retain attorneys…especially in these litigious times!
To all the posters that spew forth their moral indignation if you manned or woman upped to all your sins hell would be alot fuller. Good people make poor choices sometimes but that does not make them evil.
Exlex94, you actually imply he is guilty by trying to make such a deflection. I am not ready to trumpet guilt or innocence yet. I completely disagree with your point however. Good people do not make a habbit of stealing $45K from community serivces and charities. Embezzling from an Children’s organization is like stealing from an animal shelter or soup kitchen. It is not a poor choice, it is evil. If stealing from the most defenseless members of our society is not evil, then what is ?
I can see by your call sign that feel you can judge everyone rightously. I have neither implied guilt or innocence but my post certainly got the reaction i figured it would.
thats why there is an old saying … if it looks like, acts like and smells like a ____ it probably is
it sad that these small maine towns have gone down hill since the democrats signed NAFTA and all the manufacturing jobs left the state. Milo os no worse then any other small town that has suffered the same fate.
Its difficult for me to understand…I played B ball with him years ago and he seemed to be a good guy… It’s impossible for any of us to fully understand the circumstances that would lead a person to commit such acts. I certainly hope he has a chance to reconcile this with all affected…..this saddens me.
Just because people tell you things you want to hear and seem to be a friend, does not make them a good person. And as far as “clerical” errors go, it was a “clerical” error where I found myself trying to salvage my home from Milo tax foreclosure 20 days before Christmas on a “bundled” amount. Maine law declares all monies towards taxes be applied to the oldest year due- clerical error or not, they were still taking the property. This being a property where the billing for 4 acres has been the same amount as my neighbor with 44 acres in the past. Jeff is well aware I was threatened and my children intimidated by his former police cheif. I’ve had MANY issues from Jeff’s actions I cannot disclose the details of- this is NO nice guy when he has an agenda against you financially. Although I find his choice of attorney intresting since I’ve tried to hire Dale to sue Jeff. I have the feeling there will be more things to be disclosed in the future pertaining to town funds as well.