The Ann Arbor (Mich.) District Library filed a lawsuit March 17 against its former associate director of finance and administrative services, Donald Dely, accusing him of four counts of embezzlement, fraud, and breach of fiduciary duty. The suit contends that Dely entered into a contract with a consulting company he at least partially owned and wrote checks to them for more than $5,000 without authorization.
Dely is still under criminal investigation by police for personal purchases he allegedly made with the library’s debit card and charge account. Board President Richard Dougherty told the March 21 Ann Arbor News that the library initiated the civil lawsuit so that a judge could freeze Dely’s retirement plan. “That would enable us to have the opportunity to retrieve it, to partially offset the damage he has greatly contributed to,” Dougherty said, referring to the library’s $1.25-million deficit discovered in recent months.
On March 13, the library board unanimously approved an 18.2% increase in the millage rate it collects from taxpayers as well as a proposal to borrow up to $1.5 million in tax anticipation notes to cover the shortfall.
Posted March 27, 2000.