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Former Canton city clerk sentenced; city expects about $104,000 returned
Summary
The council was told former city clerk Lolly Melander was sentenced to 120 days in jail and ordered to repay nearly $70,000; the State Auditor found Melander overpaid herself more than $134,000 and the clerk estimated roughly 75% (about $104,000) of misappropriated funds will return to the city.
CANTON — Mayor Nick Prestby reported at the March 9 council meeting that former city clerk Lolly Melander was sentenced March 7 to 120 days in jail and ordered to repay nearly $70,000 in restitution stemming from findings in a State Auditor investigation.
City Clerk Brock Bergey told the council the State Auditor’s findings — which were incorporated into the criminal complaint used in prosecution — show Melander overpaid herself more than $134,000 in wages from 2011 through 2019. Bergey said Melander previously wrote a $24,000 check to the city in March 2019 and the city held a $10,000 surety bond. Taking those recoveries and the court‑ordered restitution together, Bergey estimated that roughly 75% (about $104,000) of the misappropriated funds will be returned to the city, assuming Melander makes required payments.
Under the sentence Bergey summarized, Melander must make a minimum payment of $2,000 every 90 days; failure to make payments could subject her to prison time. Bergey cautioned the matter’s financial resolution is complex because employee wages are paid from three different municipal funds; he said he will work with Hawkins Ash CPAs and the State Auditor information to determine the appropriate distribution of any recovered funds.
The council received the reports but no additional action was taken at the meeting on distribution of restitution funds.
