Duchesne City treasurer arrested for alleged misuse of funds

Photo by Duchesne County Sheriff's Office

DUCHESNE, Utah, Jan. 30, 2025 (Gephardt Daily) — Duchesne City Treasurer Kimberly Kielbasa Hanson was arrested Tuesday for alleged misuse of city funds.

Hanson, 56, was arrested for investigation of:

  • Two counts of misuse of public money in an amount greater than $5,000, a second-degree felony
  • Four counts of misuse of public money in an amount less than $4,999, a third-degree felony

Allegations were brought to the Duchesne County Sheriff‘s Office in August of 2024, arrest documents say. He “provided me records showing that from 2019 to 2024 Kim Hansen was the treasurer for the city, and in charge of the payroll for city employees.

“The records show that during that time period Kim as well as several other employees were either not having deductions taken out of their checks, or were having a drastically small amount taken out that did not cover the cost of their medical benefits.

“On Oct. 25, 2024, a search warrant was sent to the insurance company handling the benefits requesting records involving Duchesne City to compare to the records I already had. The records from the insurance company show that each invoice sent to the city over that timeframe had been paid in full, even though the correct amount of funds to pay the invoice had not been withheld from the payroll.

“As I looked through the documents from the insurance company the individuals involved had changed their coverages throughout the time period from 2019 to 2024, but with each change to the policies the amount that needed to be held out changed, and the correct amounts that needed to be withheld were put in wrong.”

This allowed the difference between what was to be withheld and what was withheld to be given to the employee in their paycheck while still receiving their full medical benefits, the arrest document says.

“With Kim being the Treasurer for the city she is directly in charge of the payroll as well as the other accounts for the city. I was informed by the mayor that Kim was the only person who could make changes to the payroll system, and is the person in charge of paying the invoice for the benefits to the insurance company.”

“During the timeframe of 2019 to 2024, Kim was able to underpay for her benefits, and receive approximately $21,546.13 back in her paychecks,” Hanson’s affidavit says.

“Several attempts were made to interview Kim to receive clarification on what had occurred, but Kim hired counsel and a date and time was unable to be set up.”

Hanson was arrested and transported to the Duchesne County Jail without incident, arrest documents say. She was later released on conditions including she agree to return for scheduled court dates. It was not immediately clear if Hanson is still employed by Duchesne City.

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