Lolitta Melander, 52, of Lanesboro, is facing charges including embezzlement of public funds and other felonies, related to allegations that she misappropriated funds during her time as city clerk/treasurer for the City of Canton.
In March 2019, Melander resigned her position for the City of Canton, and was replaced by Brock Bergey. The City of Canton issued a news release on November 15 stating in part, “The City of Canton is saddened to confirm that former City Clerk/Treasurer Lolita Melander has been charged with embezzlement and theft totaling $134,639 from the city, with suspicious activity dating back to 2011… An investigation by the Office of the State Auditor and Fillmore County Sheriff’s Department pursued and was completed in mid-October… The city has recovered some of the misappropriated funds but intends to seek full restitution.” The news release also states that Canton is working to strengthen safeguards related to financial documentation. The allegations of misappropriation include payroll advances and reimbursement checks to Melander.
When contacted for further detail, Bergey stated, “About $24,000 has been paid back to the city… On top of the alleged misappropriated funds, there are some additional costs that the city is seeking restitution for, as it relates to additional work by the auditing company, some legal fees for the city attorney, and a few other administrative types of fees that will also be sought for restitution.”
Fillmore County Attorney Brett Corson gave an update on the status of the case against Melander, describing the initial court hearing that occurred on November 18, stating, “She was basically asked, ‘Are you familiar with the allegations that have been made in the complaint… do you understand your rights?’ At that time, we set her conditions of release, which allow her to be released subject to a number of requirements… And then we set it for an omnibus hearing, which is where the defendant can challenge a variety of things.” He explained that the omnibus hearing was scheduled roughly eight weeks out, to give time for the defendant to receive and review financial and other documentation for potential challenges. The omnibus hearing is set for January 27 at the Fillmore County Courthouse.
Corson also explained that, “The State Auditor, in this case, had done a forensic review of the documentation and then they had done an accounting for us,” (which is how the total of $134,639 was determined). He added, “Her attorney did indicate in court that she may have been working at Mayo Clinic, but is on some administrative leave now because of the charges.”
Records show that Melander had also been serving as city clerk for the City of Whalan, and as treasurer of the Lanesboro School Board. She is now on leave from the City of Whalan, and the city has requested the State Auditor’s office to perform an audit of the city’s finances going back five years. As of November 20, the Lanesboro Public Schools website lists Lolly Melander as treasurer, but board meeting minutes on the website show that she resigned in September, and that a replacement would be named in November.
When reaching out to the Minnesota Office of the State Auditor for information on this case, it was stated that pursuant to state statute 6.715, their office cannot comment further on a case that is ongoing. The Fillmore County Sheriff’s Department was contacted as well, but did not immediately respond to requests for comment on this case.