City Fires Two in Embezzlement Scandal

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    Two of the three Española city employees named in an embezzlement investigation have been fired.

    Acting City Manager Veronica Albin confirmed that financial specialist Trudy Gallegos and finance director Josie Lujan were fired after failing to appeal notices of termination by a deadline late last week. Española Police officer Vince Crespin has appealed his termination and remains on paid leave, Albin said.

    The three employees were placed on leave June 5, the same day Albin reported financial irregularities to State Police. They were all served with notices threatening termination the week of June 15.

    Lujan has worked for the city since 1997, when she was hired as a secretary in the purchasing department. She transferred to finance and rose steadily through the ranks, eventually earning a salary of more than $52,000.

    Lujan began overseeing the city’s Finance Department last summer, when former chief financial officer Elias Martinez resigned, and she held that post until April, when the city hired Finance Manager Andrew Perkins.

    Albin told police the employees had been receiving city checks for “excessive amounts” without explanation or documentation, according to a police report. Police have put the amount allegedly embezzled at about $100,000. 

    Both Lujan and Gallegos have faced charges in the past under the state Worthless Checks Act. Then-Española Magistrate Court judge Richard Martinez dismissed charges accusing Gallegos of passing bad checks in 1997, according to a court records database. Similar charges filed against Lujan in 1997 and 1999 were also dismissed by Santa Fe Magistrate Court. Lujan paid restitution in one case, according to the database.

    The magistrate court records in question have been destroyed in accordance with standard record-keeping procedures.

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