ORANGE — During a meeting on May 16, 2024, the Orange Selectboard discussed a significant financial crisis threatening the closure of its libraries due to $338,000 paid in fraudulent invoices last year. This issue drew a large crowd, filling the meeting room and spilling into the hallway.
Town Administrator Matthew Fortier revealed that the fraud was part of a larger $800,000 attempted fraud, with some payments stopped by banks. Discovered last fall, the fraud is under investigation by the Orange Police, Northwestern District Attorney’s Office, and the FBI. Fortier emphasized the need to increase town process checks to prevent future incidents.
“We think it’s some type of money-mule scheme or folks that are … sending out fake invoices just seeing if they can get hits,” Fortier told The Greenfield Recorder. “Unfortunately, some of the town processes didn’t catch it. And that’s something that I had to fix after I took over, and increase checks and balances, change certain protocols.”
A money-mule scheme involves individuals who, often unknowingly, are recruited to transfer illegally obtained money on behalf of others. Typically, these “mules” receive the stolen funds into their bank accounts, then withdraw or transfer the money, obscuring the trail from law enforcement. While some mules are aware of their involvement in criminal activities, others might be duped into participating under the guise of legitimate work, such as “processing payments” for a new job. This scheme helps criminals launder money, making it difficult to trace the illegal origins.
“We’re not going to rest on this until we can bring people to justice. It’s not fair to the small town of Orange,” Fortier said.
At the meeting, Police Chief James Sullivan said that the FBI agent assigned to the case is fully committed to aiding Orange with all his resources.
“The stuff that this gentleman can do on his laptop, as far as chasing money down, is staggering,” Sullivan said. “I’m encouraged. We know where a bunch of the money’s gone. We know where it is, or where it was, and he’s going to be working on chasing it down and he’s going to be working on helping us build a case.”
Fortier suggested covering the $338,000 shortfall with free cash or postponing its resolution to the next fiscal year—a suggestion that the Selectboard declined. He also proposed a budget that would cut funding to the libraries, a decision he admitted was difficult. The Selectboard members echoed a reluctance to shut down the libraries.
Fortier’s proposed budget stands at $26.7 million, a slight decrease from the current fiscal year’s $26.9 million.
Should the budget be approved as presented at the Annual Town Meeting on June 17, it would lead to the closure of the libraries on June 30, marking the fiscal year’s end.
The fraud has forced town departments to tighten budgets.
Police Chief Sullivan explained that adhering to the $1.4 million budget cap for the police department would necessitate laying off two specially-skilled officers. Sullivan noted that job cuts could give the department a reputation for laying off officers, which would make future recruitment and training more challenging. He also highlighted that budget limitations might necessitate cutting the overnight shift from 11 p.m. to 7 a.m.
The Orange Fire Department’s budget has been capped at $1.5 million, a reduction from the $1.65 million initially proposed, as noted by Chief James Young. He expressed to the Selectboard that this reduction could severely limit the department’s capabilities. Several years ago, the Selectboard directed the fire department to operate two ambulances regularly to generate additional town revenue. However, Young explained that with fewer than four personnel per shift, this is no longer feasible since two are needed per ambulance. Furthermore, he mentioned that Occupational Safety and Health Administration regulations require at least four firefighters for entering burning structures—two inside and two outside for safety. The current budget cap would necessitate layoffs, leaving only three staff per shift, thus compromising both ambulance services and fire safety operations.
During a public segment at last Thursday’s Selectboard meeting, community members, including newly appointed Wheeler Memorial Library Director Jason Sullivan-Flynn, advocated passionately to keep the Orange public libraries open. Sullivan-Flynn highlighted the libraries’ crucial role in community engagement and education, noting their importance for young families, job seekers, and avid readers of all ages. He emphasized the variety of programs offered, from storytimes and book clubs to the annual Robert P. Collén Poetry Contest, stressing that the closure would also mean non-compliance with the state’s municipal appropriation requirements, thus barring residents from borrowing privileges across Massachusetts libraries.
Other residents also voiced strong support for keeping the libraries open. Nancy Washburn expressed her love for the libraries, underlining their significance in community building and economic attraction. Selectboard Chair Tom Smith and former state legislator Denise Andrews expressed frustration and disappointment with the current budgetary constraints and management decisions.
Discussion also touched on potential cuts elsewhere, with resident Mike Valeri suggesting reductions at the under-utilized, costly Orange Municipal Airport as a feasible alternative to keep the libraries funded.
As the meeting neared its close, Smith hinted at potential compromises involving reduced library hours and staffing to save the libraries, a sentiment echoed by Fortier, who personally values the library services.
“The town is down to the bone,” Fortier concluded.
Is there no one keeping track of what the town actually needs to pay for? Do invoices get submitted and the town decides…”Oh, here’s another one that needs to be paid”, without knowing what the invoice is for and if it’s a legit spend? Seriously? I guess the residents will pay for this somehow. Convince me that I’m wrong about that.