A Vermont town clerk and treasurer had her insurance yanked and has days to face a multi-million-dollar replacement after an investigation found she neglected to perform her town duties under state law.
Cynthia Diaz faces eviction from her Coventry office if she does not find an insurer who will cover her $2.5m bond.
The treasurer lost her $500,000 coverage last week after the Vermont League of Cities and Towns insurance firm, PACIF found that she “failed to perform her duties under state law,” the Caledonian Record reported.
PACIF commissioned a forensic investigation into Diaz’s activities, and accepted the results, paying the full amount possible, which totaled $500,000 with a $1,000 deductible.
Graham and Graham conducted the forensic audit, which revealed that PACIF incurred almost $900,000 in losses while Diaz held office as clerk and treasurer, and was also found to be a delinquent tax collector.
PACIF then withdrew coverage for Diaz, while the Select Board gave her 10 working days to find new coverage, this time for five times as much as her old policy. She was given notice last May 25.
Diaz said she has been “working” on getting new coverage, but declined further comment.
The Board has filed a legal complaint against Diaz as the clerk faces criminal investigation, as well as insurance investigation. She is in the middle of a three-year term as an elected official of Coventry.
If Diaz does not come up with a new insurer by next Monday, the Select Board will discuss possible options regarding her situation.
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