NORTH PROVIDENCE, R.I. -- Mayor Charles A. Lombardi said Tuesday afternoon that he will not fire the town's controller, Maria Vallee, for violations of the state ethics code stemming from Vallee's improper participation in a loan program for families of low and moderate income.
Lombardi said the town managed the loan program, under the oversight of state regulators, for 18 years and the controller, Mary G. Vallee, has been a "stellar" employee.
Vallee's family received a loan through the program for $43,595 in home repairs in 2008 even though she and her spouse had a combined income of about $125,000 -- well over the limit of $58,550.
Earlier this month, Vallee agreed to pay $78,000 in damages as part of a civil settlement with the office of U.S. Attorney Peter F. Neronha.
Lombardi said Vallee took a demotion in 2011 after she resigned her position as acting finance director and took the job of controller, which is a union position.
Now, due to Vallee's protection from the union, the town would face litigation and legal costs if it tried to fire Vallee, Lombardi said.
He said he would have fired Vallee if federal authorities had criminally prosecuted her, but instead she has faced civil litigation.
Some officials in Rhode Island government have paid fines for ethics violations and remained employed, Lombardi said.
"I think she's suffered enough," Lombardi said. "She's been a stellar employee."