The City of Paducah has received a payment in the amount of $61,560 from a claim filed in October 2011 through its employee theft policy, otherwise known as the government crime policy, held through Zurich North America Surety & Financial Claims.  For several years, the City has maintained this insurance policy to protect itself financially from employee theft situations.

This payment received May 29, 2012 is from damages incurred from the employment of former employee, Patrick Kerr.  Kerr embezzled more than $200,000 in funds from the Paducah-McCracken County Convention Center Corporation (CCC).  Kerr was a City of Paducah employee September 23, 2009 through March 4, 2011 which covers a period of time during which the embezzlement took place.  After March 4, 2011 until his termination in October 2011, Kerr worked as Executive Director of the Convention Centers through a contract with an employment agency.  The claim amount is a function of the period of time Kerr was a City employee and the amount of funds embezzled during that period.

City Manager Jeff Pederson says, “No government agency ever wants to believe that an employee would embezzle taxpayer funds; but it is wise to maintain an insurance policy for protection.”  Pederson adds, “I also want to emphasize that this claim payment is not associated with the court-ordered restitution and does not diminish the expectations of recovery efforts being pursued by the Paducah-McCracken County Convention Center Corporation.”

The CCC currently is working with the Bowling Green-based law firm, English, Lucas, Priest, & Owsley regarding the potential sources of recovery for the embezzled funds. 

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