A former Shenandoah Borough employee was arraigned Wednesday afternoon on felony theft charges after authorities alleged he kept nearly $7,000 in workers’ compensation checks that he was required to surrender to the Borough.
Joseph Michalik, 58, of Shenandoah, faces third-degree felony charges of theft of property lost, mislaid, or delivered by mistake, and theft by failure to make required disposition of funds received. Magisterial District Judge Anthony Kilker arraigned Michalik and set bail at $25,000 unsecured.
The charges stem from a complaint made by Shenandoah Borough officials on April 1, police say. Shenandoah Police say an October 2025 report prepared by certified public accountant Joseph Yanushefsky revealed Michalik received several checks from the MRM Workers’ Comp Fund for a compensable work-related injury. Because Michalik continued to receive his regular salary from the borough while on workers’ compensation status, Borough officials required him to relinquish the fund’s checks to the municipality.
Police allege Michalik failed to remit seven specific checks issued between September 2020 and July 2021, totaling $6,957.07. Investigators say Michalik demonstrated an understanding of this arrangement by properly turning over 18 other checks totaling $21,608.53 during the same time period.
According to police, banking records obtained in April and June from PNC Financial Services and First National Bank showed the unremitted checks were deposited into an account held by Michalik.
Police allege Michalik knew he had a duty to transmit the checks to the Borough upon receipt. By failing to do so, police allege Michalik converted the delivered checks for his own use.
A preliminary hearing is scheduled for July 9 before Kilker.
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Shenandoah Releases New Report Alleging Workers’ Comp Irregularities
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