Cape Charles, Va. — The good news–Cape Charles received a clean report on the recently completed audit for fiscal year 2024. However, it was confirmed (see Mirror article) that law enforcement is investigating alleged fraudulent transactions on at least one municipal credit card used by the Town of Cape Charles.
The issue was briefly referenced during the Cape Charles Town Council meeting on Wednesday, June 18, but officials offered few details, citing the sensitive nature of the investigation.
“There is an external investigation,” Town Manager Rick Keuroglian told the council. “Please hold all questions related to that.” He added that the matter could not be discussed publicly.
Councilman Grossman expressed concerns about what, when, where, and how the new Town Manager would address the fraudulent transaction issue, and whether someone would be reviewing the current procedures and new procedures. Mr. Keuroglian noted that it was a priority, and work would begin soon, with mid-year serving as the timeline for bringing this back before the Town Council.
The audit, performed by Robinson, Farmer, Cox Associates, did not disclose the amount of the questionable charges, the nature of the purchases, or the identity of the individual responsible. However, it noted that the town’s financial oversight processes “failed to detect and prevent multiple instances of fraudulent credit card transactions.”
According to the audit, the suspected fraud has raised the risk of material misstatement in the town’s financial statements. “There is a heightened risk of material misstatement in the financial statements due to undetected fraudulent transactions,” the report said.
Town Treasurer Marion Sofield addressed the mayor, council, and town manager about the issue. She stated that her department identified the suspicious activity.
Despite the irregularities, Keuroglian defended the town’s internal controls. “We have systems in place,” he said. “I think they’re really strong. Is it fool-proof? No, people who are good at doing bad stuff will always find a way. ”
The audit report included a finding labeled “2024-001” identifying material weaknesses in the town’s internal controls over financial reporting. While the audit was not designed to evaluate the effectiveness of the town’s internal control system, the deficiencies discovered were deemed significant enough to warrant attention.
Still, aside from the ongoing investigation, the town received a clean opinion on its financial statements.
“All in all, the town looks good,” said Mayor Adam Charney.
The investigation remains ongoing.
“All in all, the town looks good,” said Mayor Adam Charney.
Sir, you should resign. today. This town looks anything but good and this statement clearly identifies your lack of qualification for this job.
“The town look good”? You and your Town Council sit around and grant wishes to your friends meanwhile your employees are stealing FROM US. Tax money you collected and were entrusted to control.
FAILURES -TOWN COUNCIL AND MAYOR
RESIGN NOW!!!
The town knows who this person is who used the credit card fraudulently. So why hasn’t this person been arrested? Any other time someone is accused of stealing, whether cash or credit card, that person is arrested pending investigation. Innocent until proven guilty? Or guilty until proven innocent? I say charge them arrest them just like anyone else.
Would this be the same embezzlement case that the town has supposedly be investigating for over a year? The one where the suspected perpetrator now works for the town of Eastville…?
Obviously CCPD couldn’t or wouldnt arrest her, nor investigate her, for it possibly being a conflict of interest. As in personal relations. Marital relations even.
That’s why they call her Skim Shady!!!!
Bringing this back to the top.
Among the things Town Council and the Mayor are tasked with doing is acting as stewards of our tax dollars.
We have been stolen from, City Hall refuses to answer any questions, and the Mayor thinks we are “Doing pretty good.”
Whats up Rick?