Former Maine Turnpike Authority executive director Paul Violette has settled a civil lawsuit over allegations that he used agency funds for personal benefit, agreeing along with two surety bonding providers to pay back damages totaling $430,000.
Under the agreement, Violette will pay $155,000, Travelers Casualty will pay $174,000 and CNA Surety will pay $100,000.
"The resolution was complex and required a high level of cooperation from all parties," the agency's current executive director, Peter Mills, said in a statement Thursday. He added that the authority plans to re-channel the money into turnpike operations.
The authority sued the MTA chief in Cumberland County Superior Court in July, accusing Violette, who resigned as executive director on March 7, of "breaches of trust" and "self-dealing" and demanded payment of $524,000 it said he cost the agency for eight years
The lawsuit said Violette used $160,000 of gift certificates for personal benefit; charged nearly $25,000 in personal hotel, travel and meals to the MTA; charged $143,000 in personal and family spending "with malice" to the authority; was overpaid $140,000 in claims for unused vacation pay; and fraudulently overclaimed $21,000 in sick pay.
Auditing firm Runyon Kersteen Ouellette helped turnpike staff evaluate the loss. According to an authority statement, Violette's payout is based on a disclosure under oath that the payment is equivalent in value to his current net worth.
Violette still faces possible criminal prosecution. Messages seeking comment were left with Violette's attorney, Peter DeTroy.
Violette resigned after a report from Maine's Office of Program Evaluation and Government Accountability criticized the authority for high administrative salaries and a close relationship with engineering firm HNTB of New York. It questioned expenditures by Violette over several years and cited his inability to account for some funds that fell under his personal control.
The MTA operates the 109-mile toll road from the New Hampshire border to Augusta.
Moody's Investors Service on July 26 affirmed its Aa3 underlying rating on the authority's revenue bonds, affecting $383 million of outstanding rated debt.
