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Woonsocket's Insurance Company To Cover $200,000 Of Embezzlement Losses

Solicitor, Mayor update Council during Monday meeting.

The city's insurance company has compensated Woonsocket for $200,000 of $389,000 the city discovered missing last year, Mayor Leo Fontaine told the City Council Monday.

On Oct. 12, 2011, on embezzlement charges. She was accused of stealing approximately $389,000 between 2004 and 2010. Arruda retired in August 2010.

On Sept. 8 Woonsocket Police arrested City Treasury Clerk Michelle Giguere, charging her with Unlawful Appropriation (over $1,000) and Computer Access for Fraudulent Purposes. Police charge she stole more than $7,000 from city coffers during her time at City Hall.

Councilman Roger Jalette asked for an update on the cases at the beginning of Monday night's meeting. City Solicitor Joe Carroll told him Arruda and Giguere would be in court for pre-trial conferences on the charges in late June at the earliest.

Fontaine said the city had been reimbursed $200,000 for the larger of the two embezzlement cases. "We've recieved the full cap, which unfortunately was not the whole amount that was lost," Fontaine said. Carroll said the city may be compensated for more of the theft during sentencing of Arruda, assuming she is found guilty, when restitution could be part of the discusssion.

The Woonsocket Call reports that the city decided to only pursue the larger of the two claims with Axis Insurance Company, since multiple claims could hike the city's insurance premiums.

Rob Borkowski May 25, 2012 at 12:33 PM
Dagny - Actually, Finance Director Thomas Bruce has said in past stories on this that there are safeguards in place to prevent it from happening again. He outlines them again in the Call article.
cindy smith May 25, 2012 at 12:42 PM
I bet Rachel is collecting her retirement ... make her sell her house and car.. and get her off the homestead act! its about time she starts making restitution!
English first May 25, 2012 at 04:32 PM
Has she been convicted in court? I must have missed that.
Misty Harbor May 26, 2012 at 02:05 AM
Since Ms. Arruda hasn't had a trial yet, she probably hid all her money and has nothing in her name. They should take every asset she has, plus interest when she's found guilty. Hopefully she isn't represented by Chafee.
Russell Archambault July 25, 2012 at 08:36 PM
We are all worried that a little money is missing, Its pennies compared to the waste. Can someone ask how much interest was paid to National grid for late payments just on the school side? A ( 80.00) B (800.00) C (80,000.00) dollars. Someone please ask.

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