An Oregon weekly newspaper has had to lay off its entire staff and halt print after 40 years because its funds were embezzled by a former employee, its editor said, in a devastating blow to a publication that serves as an important source of information in a community that, like many others nationwide, is struggling with growing gaps in local news coverage.
About a week before Christmas, the Eugene Weekly found inaccuracies in its bookkeeping, editor Camilla Mortensen said. It discovered that a former employee who was “heavily involved” with the paper’s finances had used its bank account to pay themselves $90,000 since at least 2022, she said.
The paper also became aware of at least $100,000 in unpaid bills — including to the paper’s printer — stretching back several months, she said.
In some countries/provinces it’s actually legally mandated. The idea is that if someone is committing fraud there will be a period where it isn’t committed, to help make the fraud discoverable. Those mandatory vacations are also often when audits happen, both internal and by government.