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Duchesne City Treasurer arrested for allegedly misusing public funds

Duchesne Co. Sheriff's Office
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DUCHESNE COUNTY, Utah — The treasurer for Duchesne City was arrested Tuesday on suspicion of misusing public funds.

The Duchesne County Sheriff's Office arrested 56-year-old Kimberly Kielbasa Hanson on four felony counts of misusing public funds under $5,000 and 2 counts of misusing public money more than $5,000.

According to court documents obtained by FOX 13 News, the sheriff's office was first referred to the case by the mayor of Duchesne City in August of 2024. The mayor provided investigators with records from 2019 to 2024 when Hanson was the treasurer for the city and was in charge of payroll for city employees.

According to investigators, records during that time period show that Hanson and several other employees were either not having deductions taken out of their checks, or were having a drastically small amount taken out that did not cover the cost of their medical benefits.

In October, detectives received records from the insurance company handling the benefits for Duchesne City after a search warrant was approved. Detectives said the records from the insurance company showed that each invoice sent to the city had been paid in full, even though the correct amount of funds to pay the invoice hadn't been withheld from the payroll.

Documents from the insurance company reportedly showed that the individuals involved had changed their coverages throughout the time period from 2019 to 2024. However, with each change in policy, the amount needed to be held changed and the correct amounts to be withheld were put in wrong.

Detectives said these errors allowed employees to get more money in their paychecks while still receiving their full medical benefits. They said Hanson received an extra $21,546.13 in her paychecks during the five-year span.

Investigators said they attempted multiple times to set up an interview with Hanson to ask about what had occurred. However, Hanson hired legal counsel, and the meeting was never set up.

Hanson is now on paid administrative leave, according to the city.