WEST HAVEN, Conn. — The city of West Haven is getting an over $1 million insurance reimbursement to cover the cost of COVID-19 relief funds stolen three years ago, according to Mayor Dorinda Borer Tuesday.
The reimbursement to cover the federal pandemic relief funds comes after two former city employees, then-State Rep. Michael DiMassa and John Bernardo, pled guilty to their roles in a scheme that stole $1.2 million intended for the city.
"At the time, the theft left the city's image decimated and residents second-guessing their trust in elected officials," the city said. "But the daunting task of recovering the money did not deter Borer, and this week her determination paid off."
The claim for the embezzlement was initially unfulfilled, Borer said. After months that included meeting with the city's insurance carrier, The Hartford Financial Services Group, and reviewing the timeline and events, the city learned that the insurance claim will now be accepted.
According to The Hartford, the city "has supported a $1,216,541.80 loss due to employee theft."
The net loss after applying the $79,177.98 received through court-ordered restitution, along with a $100,000 deductible, comes out to $1,037,363.32. Any further restitution will go back to the insurance company.
"I think this closes a long chapter in this history, and I think the end of the day resolution is a good one for the city of West Haven. We will be receiving that money within the next few months," Borer said in a Facebook video.
The Hartford will be forwarding settlement documents to the city shortly, Borer said.
According to the city, DiMassa defrauded West Haven while working as an administrative assistant and overseeing the COVID-19 relief funds, stealing the money through the use of fraudulent invoices.
In March of 2023, Bernardo was sentenced to 13 months in prison, followed by three years of supervised release.
DiMassa was then sentenced in May of 2023 to 27 months in prison, followed by five years of supervised release.
Sean Humphrey is a digital content producer at FOX61 News. He can be reached at shumphrey@fox61.com
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