Shenandoah officials have released a new forensic report alleging additional financial irregularities tied to the borough’s former management, this time involving the handling of workers’ compensation checks.
In a press release, Borough officials say the latest findings expand on previously identified financial concerns outlined in a June forensic report prepared by accountant Joseph Yanushefsky Jr.
The Borough characterized the new document as a “supplemental report” to that earlier audit and said it focuses specifically on alleged misuse of workers’ compensation funds involving former Borough employees.
According to the Borough, the forensic supplement claims that one employee, Joseph Michalik, received and cashed some of his workers’ compensation checks personally rather than tendering them to the Borough. Those checks, the report alleges, totaled $6,957.07 and were issued by MRM, the borough’s insurance carrier.
The Borough said that while some of the checks were turned over to the Borough, others were allegedly cashed by Michalik at his own discretion. The report also claims that Michalik continued receiving regular Borough paychecks during the same period in which he was collecting workers’ compensation benefits.
The supplemental report attributes the creation of this arrangement to Anthony Sajone, who served as borough secretary-treasurer at the time. The document states that the procedure “was initiated and implemented” by Sajone, but notes that it remains unclear whether any members of Borough Council were involved or aware of the practice.
It further mentions that former Borough Manager Joseph Palubinsky was engaged as a consultant for Shenandoah during the same time frame.
Yanushefsky, the forensic accountant retained by the borough, wrote in the new report that it will be up to law enforcement to determine “any and all parties involved.” The borough’s press release emphasized that the report and all related findings have been referred to auditors and legal counsel for review.
In its public statement, the Borough says that “signing over” workers’ compensation checks to an employer in exchange for taxed payroll wages could constitute violations of state and federal law, including possible fraud, tax misreporting, and insurance violations.
The Borough says the supplemental report was part of its ongoing effort to maintain “financial transparency and accountability.”
This latest report follows a broader forensic investigation released earlier this month that alleges more than $240,000 in questionable transactions during Sajone’s tenure as secretary-treasurer between 2020 and 2024.
That earlier report cited alleged irregularities involving payroll, pensions, and insurance policies and has been referred to state and federal authorities for review.
Officials said the borough intends to continue releasing additional findings as forensic reviews progress and to cooperate fully with investigators and auditors.
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