METHUEN — The U.S. Department of Justice has an "open" case "pending prosecution" against ex-police Chief Joseph Solomon for misspending $170,000 in grant money on overtime for himself, his secretary and four superior officers, newly-released documents show.

This is the first public confirmation that an ongoing federal investigation into police department grant spending could result in criminal charges against Solomon. The information is contained in an April 4, 2007 report following an investigation by the Fraud Detection office of the U.S. Office of the Inspector General.

The 50-page report says subpoenaed police department payroll records make it "impossible" to tell if Solomon, his secretary and the four officers actually worked the hours they were paid for out of a $1.125 million federal Weed and Seed grant.

"During the review of materials submitted by MPD in connection with an allegation of misconduct by Solomon, OIG (Office of Inspector General) found numerous instances where there were no supporting records documenting the hours allegedly worked by some employees, including Solomon," wrote Special Agent David Glendinning.

Glendinning wrote other patrolmen who put in overtime under the grant regulations had proper documentation to show how they earned the extra pay. But for Solomon, his secretary and the four officers, no official records were kept.

"This is a significant material deficiency and the additional fact that, when given the opportunity, Chief Solomon put in place a system for accounting for the activities of underlings but not his supervisory team, raises serious questions regarding the motives and intentions of MPD officials to adhere to grant requirements," Glendinning wrote.

The matter has been turned over to the U.S. Attorney's office, the report states. A spokeswoman for the U.S. Attorney's office in Boston said they will not confirm or deny an investigation. Solomon has not been charged with a crime.

Nobody answered the door at Solomon's home Friday, and his attorneys, Andrew Gambaccini and John Vigliotti, did not return phone calls.

The report was used by Mayor William Manzi in his civil service disciplinary case against Solomon and part of the reason why Manzi fired the chief last week. It was one of 58 exhibits the city provided as evidence against Solomon.

"I think we're appreciative of the fact that we were able to have it for the hearing," Manzi said of the report. "It was just part of the overall picture, but certainly I think an important part."

The grant

Methuen received $1.125 million in Weed and Seed money between 2001 and 2006 to be spent "weeding" out crime in the Arlington Neighborhood and providing the "seeds of revitalization."

The report states the department's grant spending came under scrutiny when the officer received allegations that Solomon "knowingly" used grant money "to supplement his and others' pay without requiring that they perform the hours of work required under the terms of the grant."

The Inspector General subpoenaed all personnel spending records for the grant on Oct. 17, 2006. Investigators reviewed the documents and found there was documentation to account for the overtime paid to patrol officers, but not supervisors.

"Other than rank-and-file patrol officers, however, there was little supporting documentation to indicate when or where overtime or other claimed work of MPD officials occurred," the report said.

The report identified those receiving the $170,000 without proof they worked the hours as Solomon, now-retired Deputy Chief Joseph Alaimo, Capt. Kristopher McCarthy, Sgt. Michael Havey, Lt. Kevin Mahoney and Solomon's former secretary, Patricia Giarrusso.

Solomon told the special agent he created a "specific form" to record overtime worked by patrol officers, but he did not use the form for supervisors or Giarrusso. The chief said he didn't know he was required to keep time sheets in addition to his computerized payroll system.

"Solomon did acknowledge, however, that for most of the overtime claimed by supervisors, the determination was based solely on a review of work schedules, calendars and/or recollections by the overtime claimant's supervisor as opposed to a specific submission by the claimant," the report states.

The report says the Police Department had computerized pay statements for the supervising officers, but for much of the overtime they did not have a "source document to compare against the computerized accounting entry, and so there was no basis for ensuring that the claimed work was actually performed," the report said.

Solomon, while testifying at the disciplinary hearing in which he fought for his job, said "he and his fellow superior officers not only worked the number of hours for which they were paid, but in many instances worked many hours without compensation."

><p>

Solomon's secretary

Giarrusso was responsible for the administrative requirements of the grant. She testified she usually entered superior officers' hours based on "whatever time was allowed under the grant, rather than question the officers about their exact time worked," the report said.

Giarrusso also got paid a "stipend" for four hours a week under a separate Executive Office of Public Safety (EOPS) community policing grant from 2001 to 2006, but "she could not explain when that four hours was being worked," the report said.

Giarrusso worked 8:30 a.m. to 5:30 p.m. and did not do any hours under the EOPS grant after 5:30 p.m. or on the weekends, the report said.

Giarrusso told the special agent that she worked her normal work day from 8:30 a.m. to 4:30 p.m., then an additional hour each day for overtime for Weed and Seed. She said she worked two hours at home on Saturdays with her laptop computer, therefore working seven hours of overtime a week for Weed and Seed.

Giarrusso could not be reached for comment for this story.

Giarrusso resigned "under duress" in November from her $60,000-a-year job, and Alaimo retired from his $97,790-a-year position in March. Manzi has yet to appoint a new police chief, and Katherine Lavigne is serving as acting chief.

Last July, Manzi ordered superior officers to complete the same type of time sheets that patrol officers fill out, and he increased the oversight that his office has over grants, he said.

FRONT PAGE BOX: Joseph Solomon's good-bye package

Mayor William Manzi fired Solomon last week, but Solomon didn't walk away empty-handed:

Salary from Sept. 28, 2007 (the day he was put on paid leave) to May 7 (the day he was fired): $76,588

Vacation time buyback: $22,490 Sick time buyback: $0

Longevity: $6,654

Pension: Solomon is entitled to a pension, however, he has not indicated that he is retiring. His pension will be based on his highest-paid years (he was earning $158,000 at one point, before the City Council cut his salary).

Health insurance: Solomon can get health insurance for the next 18 months, but he would have to pay the COBRA rate of 102% of the total premium. That means the city will not pay anything for his health insurance, and if he takes the insurance, a family plan would cost him $326 a week.

Total amount paid since put on leave: $105,732

Source: City Auditor Thomas Kelly

INSIDE BOX: Weed and Seed grant money unaccounted for:

Chief Joseph Solomon: $10,403

Deputy Chief Joseph Alaimo: $12,604

Capt. Kristopher McCarthy: $44,254

Sgt. Michael Havey: $32,021

Lt. Kevin Mahoney: $25,480

Administrative Assistant Patricia Giarrusso: $45,934

Total: $170,696

Source: Inspector General's report of April 4, 2007

> >