Former school business manager arrested on forgery charge

WARRENSBURG - Michael Kelly, 59, business manager of the Warrensburg Central School District for more than three decades, was arrested Wednesday on felony charges of forgery and offering a false instrument for filing.

Police said Kelly altered his employment agreement with Warrensburg Central to state that he receives 100 percent insurance coverage in his retirement rather than the lesser amount actually negotiated with the District.

Arraigned in the Warrensburg Town Court Wednesday morning before Town Justice Richard Nissen, Kelly was charged with second-degree Forgery and first-degree Offering a False Instrument for Filing. He was released on his own recognizance.

Police said the situation was uncovered after he submitted a forged form earlier this year that indicated the school district awarded him full health insurance coverage,

Kelly was employed as the business manager at the school district for 32 years, and had the reputation of maximizing state aid, helping lower-income residents sign up for school lunch assistance programs, and pursuing educational and facility grants.

He retired in 2006.

But some of his actions at Warrensburg Central raised questions with state officials. A state audit of the school district's financial practices questioned some alleged unauthorized expenditures, payments to administrative personnel, and record-keeping practices - all allegedly occurring during the latter years of Kelly's tenure.

The state concluded earlier this year, however, they weren't going to take action on the issues against the school district.

State Police investigators and uniformed personnel investigated the case.

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