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Narragansett

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Narragansett school finance chief charged with taking funds

01:00 AM EST on Friday, November 14, 2008

By Randal Edgar

Journal Staff Writer

NARRAGANSETT — Since taking over as school finance director last year, Christopher E. Mallett had added to a growing list of accomplishments.

He simplified budget reports, oversaw the adoption of a state-mandated accounting system and helped the School Department adjust to new accounting software.

So it was all the more surprising last month when a school accounting clerk noticed two transactions that raised questions about Mallett’s conduct.

Making a routine check, the clerk found two purchase orders Mallett had handled himself, beginning to end, even issuing two checks totaling more than $50,000 — to himself, school and police officials said yesterday.

The clerk told Supt. Katherine E. Sipala, who reviewed the transactions and met with Mallett. Then, she went to the police.

On Wednesday, Mallett, 43, was arrested and charged with two counts of unlawful appropriation and two counts of accessing a computer for fraudulent purposes, both of which are felonies. He later appeared in District Court, South Kingstown, where Judge William C. Clifton released him on $50,000 personal recognizance.

Police Lt. William F. McGovern said Mallett issued the purchase orders and checks during the weekend of Oct. 18 and 19, going into the school administrative offices at Town Hall two times. The purchase orders state that one check, for $42,000, was a reimbursement for unused sick and vacation time, while the other, for $9,722.25, was a reimbursement for unspecified expenses.

Sipala said the clerk noticed the transactions on Oct. 28, during a routine check that takes place at least every two weeks. The superintendent met with Mallett the next day and placed him on paid leave, she said, and then met with Police Chief Joseph T. Little Jr.

Mallett had deposited the money into his own bank account, but he repaid it after meeting with Sipala.

He was contacted by the police on Monday and agreed to turn himself in at the police station on Wednesday morning. He could not be reached for comment yesterday, and his lawyer, Terence Houlihan, said he had only just taken on the case.

“I really know very little. He’s just been charged,” he said.

Sipala said Mallett has worked for the Narragansett schools for about five years. He was the department’s accounting coordinator until the retirement last year of Business Director Ronald DiFabio. Since then, Sipala and Mallett have shared financial oversight duties. His pay, which had been about $50,000 a year, is $81,600 this year, Sipala said.

McGovern declined to speculate on a motive.

Mallett lives at 70 Lambert St., in a ranch house he bought in 1996. He graduated from Portsmouth High School in 1983 and attended Rhode Island College, earning a bachelor’s degree in accounting in 1988.

He is due back in court on Dec. 2 for a felony screening conference. If convicted, he faces up to 20 years in prison for the unlawful appropriation charge. He will remain on paid leave at least until Monday, when the School Committee is scheduled to discuss his status.

Sipala said an auditor will review school accounts back to July 2007 to see if there are other questionable transactions. She described Mallett as “a very hard-working, dedicated employee.”

“It was a surprise,” she said.

— Journal staff writer Maria Armental contributed to this report.

redgar@projo.com

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