The Cortez City Council on Tuesday signed off on its insurance company’s offer of $63,000 to cover the amount that is believed to have been embezzled by the city’s former finance director.
“That’s only what they can prove,” said Cortez City Manager John Dougherty regarding the Colorado Bureau of Investigation’s investigation that concluded earlier this year.
Insurance coverage from the company CNA Surety also covers the cost of the forensic audit of the missing money, said Mike Green, Cortez city attorney. The city covered audits outside the theft investigation.
The council discussed seeking restitution, but Councilor Sue Betts said the “chances of her making enough money to get us restitution are slim.”
Councilor Amy Huckins said it was “time to put a bow on this long, dragged-out process and move on,” even though councilors said the former finance director must have embezzled more than $63,000, given the faulty software that scrambled the city’s money records.
The offer from the insurance company was approved unanimously, through Councilor Orly Lucero said there is “still something fishy to me.”
Felony charges were filed against Katheryn Moss, 70, the former finance director, earlier this month.
Court documents allege that Moss took over $68,000 from the city of Cortez between January 2016 and December 2018. Her arraignment is scheduled for next week.
Moss served as the city’s finance director for over three decades and officially retired in January of last year.
According to 22nd Judicial District Attorney Will Furse, Moss could face jail time of between two and six years, although that could be shortened or extended, and probation could be served as an alternative to imprisonment.