DUBOIS — The interim DuBois City Manager, Chris Nasuti, has given a report to DuBois City Council regarding the impact of allegations against Herm Suplizio as they relate to the city’s general budget.
Here is that report:
“At Council’s request, I have reviewed the General Fund as it relates to the allegations presented in the Affidavit of Probable Cause. General Fund: The General Fund is the operating fund of the City of DuBois. All tax monies and all grant monies are received by the General Fund. The General Fund is held by S&T Bank.
The Affidavit of Probable Cause recites:
“Theft from Public Accounts and Tax Fraud associated with Public Accounts”
Theft “City of DuBois General Fund Account”: $3,000.00
“Tax Fraud City of DuBois General Fund Account”: $26,077.56
“Total Fraudulent Transactions” $29,077.56
As to the Affidavit’s Theft Allegation:
According to the Affidavit of Probable Cause, one (1) alleged act of theft occurred from the General Fund. It is stated that this transaction, which occurred on January 3, 2014, included “a cash transfer of $3,000 from the City’s General Fund to Suplizio’s personal savings account that was not associated with a reimbursement request”. Our records indicate that a check (Check # 043468) written to Mr. Suplizio on November 15, 2013, in the amount of $3,000 for car and cellular telephone expenses, is most probably the source of the transaction. This conclusion is supported by Mr. Suplizio’s Employment Agreement, which provided for a monthly stipend of $250 ($3,000 annually) for cell phone and personal vehicle use in 2013. This stipend is scheduled to increase 3% per year. Using the 3% annual escalation, the subsequent annual reimbursement payments would then be $3,090, $3,182.70, $3,278.18, $3,376.53, $3,477.83 and $3,582.16.
These numbers all correspond with the allegations found in the Affidavit and our financial records. We are confident that the upcoming forensic audit will reveal the source of the funds for this transaction was indeed the expense check issued on November 15, 2013. There are no other allegations of theft from the General Budget for the period of January 4, 2013 through the present date. Our own internal comparisons of records between the financial office and the deputy treasurer’s office, for the same time period, have also found no indications of theft from the General Fund. Again, I am confident that the General Fund and its operations are safe and secure.
As to the Affidavit’s allegations of Tax Fraud:
According to the Affidavit of Probable Cause, eight (8) alleged acts of tax fraud occurred between 2014 and 2021. In all eight (8) instances, Mr. Suplizio is alleged to have received reimbursement for car and cellular telephone expenses and then claimed the same expenses on tax returns. City Council and staff have no control over how an individual chooses to complete his own personal tax returns. Consequently, these allegations have nothing to do with the operation of City Government. City Council cannot comment on nor address allegations regarding any employee’s personal tax returns. There are no allegations of tax fraud against the City of DuBois or the management of its accounts for the period of 2014 through the present date. Our own internal comparisons of records between the financial office and the deputy treasurer’s office, for the same time period, have also found no indications of tax fraud from the General Fund.”
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