On January 15, 2026 it was disclosed that a forensic review has revealed significant pension and payroll issues in Shenandoah Borough of Pennsylvania:
- Scope of Investigation: Independent forensic accountants examined post-retirement payments and payroll records spanning several years and administrations.
- Key Findings: Two former employees received unauthorized payments after retirement or resignation, totaling over $83,000.
- Accountability: The borough has referred the findings to state and federal authorities for potential enforcement.
- Restoring Trust: Current officials emphasize their commitment to transparency and protecting public funds.
Understanding these issues is crucial for ensuring financial integrity and rebuilding confidence in local government.
Timeline of Misconduct
- May 31, 2015: Joseph Palubinsky officially retires as borough manager.
- 2015–2018: Palubinsky continues to receive payroll payments post-retirement.
- 2018–2025: Vendor payments and benefits issued to Palubinsky.
- Jan 31, 2023: Frank Breznik signs resignation and workers’ compensation termination.
- Feb 17, 2023: Breznik’s final payroll date per agreement.
- Feb–Aug 2023: Breznik continues to receive payroll payments.
- Jan 2026: Borough refers findings to Attorney General and IRS.
Both individuals received payments after official retirement or resignation, violating borough policies and agreements. Palubinsky received $55,851 and Breznik received $27,346 in unauthorized payments.
Enforcement Actions Initiated
Findings have been formally transmitted to the Pennsylvania Office of the Attorney General and IRS Criminal Investigation Division. Borough officials have pledged ongoing cooperation with authorities. The administration stresses its commitment to protecting public funds and restoring trust.
