AUGUSTA – The attorney for a former Chelsea selectwoman accused of misusing town funds says he is working with federal prosecutors to try to negotiate a settlement.


Attorney Leonard Sharon was in Kennebec County Superior Court this morning with Carole Swan, the former selectmen’s chairman, for a brief hearing regarding state charges.


Swan, 53, has pleaded not guilty to an indictment in Kennebec County charging aggravated forgery Feb. 4, 2011; attempted theft from the town Feb. 3, 2011; and two counts of improper compensation for services between Sept. 24, 2009, and Jan. 25, 2010.



The case is now headed to federal court.


“The feds have completed their investigation, and I have been meeting with the deputy U.S. attorney in charge of it,” Sharon said Wednesday. “We are in the process of negotiating a settlement in the federal case.”


Sharon said the charges under consideration by federal authorities are similar to those in the state court.



In Kennebec County Superior Court, Sharon told a judge that he has been in talks with federal authorities and expects it to be moved to U.S. District Court.


Sharon said he was hoping to come to an agreement with the federal prosecutor prior to any indictment being brought in federal court.


If federal charges are brought, state charges would be dismissed. If that does not happen, Swan’s next court date in Kennebec County Superior Court is scheduled for March 6.

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