CDA Press: Insurance Carrier Denies Athol's $400K Claim on Missing Funds

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The northern Idaho community of Athol has a problem: it said that one of its public servants had allegedly embezzled more than $400,000 but now, it doesn't know what to do about replenishing its coffers.

In July 2014, Sally Hansen was fired from her job as a clerk at Athol City Hall. Earlier this month, federal prosecutors charged Hansen with stealing from the city over five years, saying Hansen wrote more than 200 checks to herself or her husband, then presented them to the city as paychecks.

This morning's Coeur d'Alene Press reports that Athol's insurance carrier has denied a claim to recoup the funds. The Idaho Counties Risk Management Program sent a letter in late December 2014 to Athol officials, saying that the city failed to conduct financial audits during the years of the alleged crime.

"All of us are going to be taking a hit on this," Athol Mayor Darla Kuhman told the Press. Kuhman, the former Athol City Council President, was appointed to her current post in January 2014, following the death of longtime Athol Mayor Lanny Spurlock

Meanwhile, Athol has another issue: Its city attorney resigned his position in October 2014.