NORTH ANDOVER — The town is moving to fire Purchasing Director Joseph Lydick following his arrest earlier this month on charges of embezzling nearly $30,000 of the town's money.
Town Manager Mark Rees said he has "begun the process of terminating (Lydick's) employment." But getting rid of Lydick is only the first step. Town officials are still hoping recoup the stolen money, and are looking at ways to keep something like this from happening again.
Rees apologized last week for the "cloud" the scandal has created over the town.
"I take full responsibility for this matter," he said in a statement. "As the town manager, it is my responsibility to make sure things like this do not happen."
Lydick, whose office is across the hall from the town manager, was charged with selling plows, trucks and other equipment on eBay through the town's account and having the winning bidders write the checks out in his name.
According to police reports, he said he stole to buy his girlfriend an engagement ring. He also claimed depression.
Lydick, who has been suspended without pay, was arrested on Nov. 16, and charged with three counts of embezzlement by a municipal officer and larceny over $250. He is free on personal recognizance bail.
While initial reports estimated Lydick stole $20,800, Rees said the tally is now close to $30,000.
Lydick's actions were first brought to light on Nov. 10, when a resident asked Assistant Town Manager Ray Santilli why the purchasing director was asking people to make checks out to him and not the town.
Santilli and Rees went to police Chief Richard Stanley with the allegations, and an investigation was opened. The town's outside auditors, Powers and Sullivan, conducted a forensic audit.
"Once we were informed of Mr. Lydick's illegal actions, we did everything we were supposed to do and in the appropriate manner," Rees said.
Now that the extent of the thefts has been determined, the town is taking steps to keep it from happening again.
Selectmen last week charged the town's Audit Committee with investigating Lydick's embezzlement and making recommendations on how to improve internal controls. A report is due by the end of the year.
"We will, of course, work diligently to design and implement new procedures that will make a reoccurrence of what happened very, very difficult," Rees said.
When he came to North Andover nine years ago, he said the town was in a financial mess. There was a revenue shortfall, a health insurance trust fund with a half-million-dollar deficit, and the town's bond rating was one step above junk bond status. There was no capital plan or long-term financial planning.
There were also no written financial procedures or policies in place.
"Since then, all of these matters have been addressed, corrected and improved upon," Rees said.
He said the town did have procedures in place to track fixed assets, and had begun to improve on those when the embezzlement occurred.
The town is also looking at various ways to recover the stolen money.
They could attach Lydick's retirement funds at Essex Regional Retirement System, which are currently frozen, seek restitution through the courts, or file an insurance claim.
Lydick had worked for North Andover since January of 2008. He had an unblemished 20-year military record, he worked for several years in the state procurement office, and he came with excellent references, Rees said.
"We did a thorough job in checking out his background," Rees said. "There was nothing to indicate in his behavior or work product that he was capable of the illegal activity he engaged in."
He called the embezzlement "disheartening on both a personal level and to all of our employees who have worked so hard to improve and put in place proper financial policies and procedures."
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