Last Fri. the Paonia City Council held a special meeting where the town auditor talked about the 2011 and 2010 audits. The audits were done at the request of the district attorney in an effort to build a case against former town finance officer Kristin Chesnik. She had resigned at the beginning of the year when discrepancies were discovered in the 2010 audit. She was initially placed on administrative leave, but when the numbers did not match up they decided to file criminal charges against her. The 2010 audit revealed employee fraud totaling over $200 thousand.