CANTON - Attorney General Eric T. Schneiderman today announced that a former Pitcairn Town Supervisor Susan Smith has pleaded guilty to stealing more than $34,000 from the town's bank accounts.

Smith pleaded guilty in St. Lawrence County Court before Judge Jerome Richards, to one count of Grand Larceny in the Third Degree, a class D felony.

Smith will be sentenced in August and will be ordered to pay over $34,000 in restitution. Smith was the Pitcairn Town Supervisor, an elected official. In this role, she managed the town's finances, maintained its expense records and administered its bank accounts.

Smith was also employed as branch manager at Community Bank, N.A (CBNA).

According to the charges, Smith prepared and executed approximately $35,000 in unauthorized payments to herself and others from Pitcairn's accounts at CBNA between December 2008 and December 2009.

Smith issued checks associated with these unauthorized payments and cashed them for her personal benefit at the CBNA branch where she worked, officials said.

According to the charges, when the Office of the New York State Comptroller (OSC) questioned some of these payments during a risk assessment, Smith prepared and submitted false documentation, including a forged bank memo, which falsely indicated that she had credited funds back to the town. Smith prepared and executed approximately $35,000 in unauthorized checks to herself or third parties from town accounts held at CBNA.

"Taxpayers should never have to question if their money is being misused," said New York State Comptroller Thomas P. DiNapoli. "Unfortunately, this case proves what can happen when proper financial controls aren't in place. I want to thank Attorney General Schneiderman and his staff for working closely with my auditors to ensure this former official was held accountable for stealing from her constituents."

Assistant Attorneys General Bridget Holohan Scally and Colleen Glavin, of the Public Integrity Bureau, are prosecuting the case under the supervision of Deputy Bureau Chief Stacy Aronowitz, Chief William Schaeffer and Executive Deputy Attorney General for Criminal Justice Kelly Donovan.

The case was referred by the OSC following an audit that uncovered the fraudulent conduct.

Investigator Peter T. Kraengel of the New York State Police assisted with the investigation of the case.

Officials said anyone with additional information on the matter or any other public corruption is encouraged to