Former Emerado city auditor accused of misusing, stealing more than $115,000 in city funds
Jan. 11—GRAND FORKS — Felony charges have been filed against Emerado's former city auditor, who allegedly misused and stole city funds during her employment, which spanned from 2019 to 2022.
On Tuesday, Jan. 9, Wendy Jane Sullivan, 59, was formally charged with two Class A felonies: theft over $50,000 and misapplication of entrusted property over $50,000. Both crimes have maximum penalties of 20 years in prison and $20,000.
A warrant for Sullivan's arrest was proposed Tuesday, but had yet to be approved by a judge as of Thursday afternoon, Jan. 11.
Emerado Police Chief Dan Lund reported the suspected theft and misapplication to the North Dakota Bureau of Criminal Investigations in April 2022.
The BCI obtained warrants for the city's Alerus Financial account and Sam's Club card and discovered numerous questionable transactions, according to an affidavit filed in the case.
There were 514 Sam's Club card purchases from May 22, 2019, to April 2, 2022, which totaled $8,146.18. Purchases included a variety of items, like beef steak strips, gasoline and dryer sheets.
Sullivan was employed as the city auditor from March 2019 to March 2022. As auditor, she was the sole account holder for the Sam's Club card and debit card, the affidavit said.
Alerus Financial records revealed a number of questionable debits and withdrawals from March 29, 2019, to April 19, 2022, the affidavit said. Some examples were $107.56 at Emerado Dollar General, $521.20 at Walmart and $500 at St. Michael's School in Grand Forks.
The questionable transactions added up to $17,892.06.
It was Sullivan's responsibility to write payroll checks to city employees, the affidavit said. The BCI reviewed electronic copies of checks written from March 11, 2019, to May 11, 2022.
During that time, multiple checks were written to Sullivan in a one-month period, the affidavit said. Lund informed the BCI that city employees are paid bi-weekly.
Reviewing Sullivan's checks and comparing them to her budgeted payroll, it was determined that Sullivan had been overcompensated for her work by $89,575.34, the affidavit said.
The sum of all allegedly misapplied or stolen funds is $115,613.58.
Emerado City Hall staff declined to comment on the case and directed any inquiries to the state's attorney's office.
The Herald also reached out Sullivan on Thursday afternoon, Jan. 11, but did not hear back by the end of the business day.
