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Former Athol clerk sentenced to prison

KEITH COUSINS/kcousins@cdapress.com | Hagadone News Network | UPDATED 9 years, 7 months AGO
by KEITH COUSINS/kcousins@cdapress.com
| June 10, 2015 9:00 PM

COEUR d'ALENE - Sally Hansen was sentenced Tuesday to four years in prison for embezzling $417,879 from the city of Athol.

Hansen, the former city clerk, was also ordered by U.S. District Judge B. Lynn Winmill to pay $434,112 in restitution to the city of Athol and $15,000 in court fines. According to court documents, Hansen was hired in 2009 and wrote fraudulent checks to herself and her husband while using wire transfers to move funds between different city accounts.

"I was kind of disheartened by it," said Athol Mayor Darla Kuhman. "The judge said he believes that she will not be able to complete her restitution so why not lengthen the prison term or give her community service?"

Kuhman added that the restitution accounts for the forensic audit conducted by the city of Athol, as well as the costs associated with Hansen using a city check to rent an excavator to work on her property.

The Idaho Counties Risk Management Program, an entity which insures cities and counties in the state, has agreed to pay Athol $102,000 - the amount of money revealed in the 2014 forensic audit. Kuhman said the city is appealing the decision in the hope it can recoup the full amount that was embezzled.

One positive that came from the case, Kuhman said, is that the state now has a portal that allows cities and other entities to file annual audits online.

"If that portal had been in place, this wouldn't have happened," she added. "It wouldn't have changed her falsifying documents, but it would have limited it."

Athol itself must now rebuild, Kuhman said, and mend the trust between city departments that was broken during the investigation into Hansen.

"I think as a community we need to pull together," she added. "The beautiful thing about Athol being so small is that if you put your mind to it, everybody can work together and make a better community."

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