Report says Stewart bypassed approval process for severance and other payments

A new report says former New Britain Mayor Erin Stewart bypassed the required approval process when she negotiated a nearly $151,000 severance package that was significantly higher than she should have received.

The report, conducted by independent investigators, also said that Stewart’s college tuition reimbursement and attempts at a pension both ignored clear rules stipulating she should not have received either benefit.  

“The frequent and repetitive nature of the misconduct exhibited by Ms. Stewart is inexplicable for a public official and should be referred to the proper state and federal law enforcement authorities for further review as her actions may constitute fraud, larceny, embezzlement, false statements, and official misconduct,” the report, by the Crumbie Law Group, states.  

This is the third report from the Crumbie Law Group, hired by current Mayor Bobby Sanchez (D-New Britain) earlier this year to identify “actionable opportunities to improve efficiency and strengthen the city’s long-term fiscal sustainability.”  

Read Sanchez’s statement in the document below:

The findings of earlier reports derailed Stewart’s bid to be the Republican nominee for governor and, according to law enforcement sources, have prompted investigations by the state police, the FBI, and a joint inquiry. Attorney General William Tong and the Department of Consumer Protection announced a third investigation on Wednesday. 

Neither Stewart nor her lawyer has commented publicly since she ended her campaign. The report notes that Stewart stopped responding to investigators after they denied her request for written questions. We’ve reached out to Stewart’s lawyer but have not heard back.

In this latest 91-page report, investigators raise questions about how Stewart negotiated various forms of compensation. Read the full report below:

According to the report, Stewart initially claimed she was entitled to a severance payout of $205,479.25, based on unused vacation, personal, holiday, and sick time, as well as longevity pay.  

“In effect, Ms. Stewart sought a separation payout for every vacation, sick, holiday, and personal day she could conceivably be entitled to over her entire twelve years in office, whether she took the time off or not,” the Crumbie report states.  

According to the report, Human Resources Director Linda Guard recalled Stewart stating that she “worked 24/7 for 12 years.”  

Guard noted Stewart twice took maternity leave, medical leave for surgery, and had other documented time off from work, the report states.  

Investigators note that Stewart was entitled to severance pay under the city’s non-union management resolution, but the report claims Stewart’s calculation was well beyond what was allowed.  

In particular, investigators said New Britain has a “use or lose” policy that would prevent Stewart from rolling over personal time, even if she didn’t use it.  

The report also notes the largest severance payment to a mayor prior to Stewart was $13,482.17 to her father, Timothy Stewart.  

Stewart ultimately lowered her calculation, because of objections from Guard, to $150,949.59.  

Investigators with the Crumbie Law Group said the maximum calculation for Stewart’s severance should have been only $16,006.20.  

According to the report, Guard said she felt pressured by Stewart to approve Stewart’s severance pay request.  

The agreement called for 20 installments, but Sanchez halted the agreement in February after 10 payments.  

A letter at that time, from the Crumbie Law Group to Stewart, noted the city had launched an investigation into severance packages she negotiated for herself and some of her staff.  

Thursday’s report also raised questions about tuition reimbursement, noting that city policy did not offer payment for elected officials to obtain a college degree until Stewart negotiated the benefit for herself.  

NBC Connecticut obtained documents Tuesday through a Freedom of Information Act request showing the city paid Stewart $31,561.54 in 2021 and 2022 as reimbursement.  

Stewart received a master’s degree from the University of New Haven.

Documents obtained by NBC Connecticut earlier this week show the reimbursements came from an account intended for employee healthcare, but Stewart received a memorandum from the city altering that account to also allow payments for her education. 

The Crumbie report raised concerns about how Stewart negotiated the agreement, which was signed by Guard, then-Common Council President Pro Tempore Kristian Rosado, and former city Corporation Counsel Gennaro Bizzarro.  

Investigators said the change required a full vote by the common council under New Britain’s city charter, not just approval from Rosado.  

The report also notes that the state constitution and law prohibit elected officials from increasing their compensation mid-term without a vote by the legislative body, in this case, the common council.  

“Because the reimbursements to Ms. Stewart were not lawful, the city must treat the payments as a wrongful expenditure of public funds and demand repayment in full, pursuing all available administrative and legal remedies to recover the misused funds,” the report said.  

Investigators said Stewart also sought a pension, despite documents showing she knew she was not entitled to one.  

The city’s charter states that elected officials must serve 20 years in office to be eligible for a pension, but Stewart served only 14 years combined on the school board and as mayor.  

Still, Stewart sent a request on Oct. 31, 2025 – roughly two weeks before her term ended – for a prorated pension.  

According to documents included in the report, she requested a monthly payment of $3,280.52 when she turned 55. That represents 35% her salary of $112,475 when she left office.  

Investigators said Stewart knew those requests weren’t valid because of a 2020 email from a city attorney stating she needed 20 years of service. 

Stewart also signed a memorandum of understanding in 2024, granting former Revenue Collector Cheryl Blogoslawski a prorated pension based on her 16 years of service.  

Investigators said Stewart’s “claims to city pensions for herself and a close ally despite explicit legal advisement that such pensions were not proper reveal a striking pattern of misconduct and an abuse of her office for personal enrichment and political patronage.” 

State police and the FBI are conducting parallel investigations into Stewart’s use of a city credit card after another report accused her of using it for personal purchases, according to law enforcement sources. 

Tong and Consumer Protection Commissioner Bryan Cafferelli, meanwhile, announced Wednesday they were launching their own investigation into how Stewart handled assets for her Mayor’s Trophy Charitable Fund.  

Thursday’s report recommends that the city refer the most recent findings to authorities.  

“The frequent and repetitive nature of the misconduct exhibited by Ms. Stewart is inexplicable for a public official and should be referred to the proper state and federal law enforcement authorities for further review as her actions may constitute fraud, larceny, embezzlement, false statements, and official misconduct,” the report states. 

This story uses functionality that may not work in our app. Click here to open the story in your web browser.

Source Link