Pelham had employed finance head charged with embezzlement
"We had audits on a yearly basis and there were no indications of any problems during her tenure here," said Ed Gleason, chairman of the Pelham Board of Selectmen.
"There was no evidence of any misdoing," he said. "I can't reveal anything further than that."
Plaistow town officials hired an accounting firm in January to audit Gallant's work after they became concerned about financial discrepancies related to suspicious payroll transactions.
The Rockingham County Attorney's Office and Plaistow police were notified and began a criminal investigation after an independent investigation of the finance office raised significant concerns about Gallant's handling of town funds, according to Fitzgerald. Gallant was hired in Plaistow in 2011 and was fired in September. While the town has insurance to cover the loss, town officials hope to recover the money.