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June 19. 2012 11:32PM

Records reveal ex-Hooksett chief was suspended for spending $30,000 on legal fees in violation of budget rules

CONCORD - Former Hooksett Police Chief Stephen Agrafiotis was suspended for three days in March 2011 for paying $30,000 in legal retainers to a Manchester law firm that the police commission maintained violated the Municipal Budget Law.

Town officials never made the suspension public but Agrafiotis did in April 2011 when he filed an appeal of the discipline in Merrimack County Superior Court in Concord.

Even though he resigned as police chief in January, after a four-month paid administrative leave, the case against the Hooksett Police Commission continues and is scheduled for a bench trial on July 3 before Judge Richard B. McNamara.

A call to Agrafiotis' attorney, Andru H. Volinsky, for comment was not immediately returned. Attorney Dan Mullen, who represents the police commission, said he did not know why Agrafiotis is pursuing the appeal, given his resignation.

The former police chief said in court documents he wants his suspension overturned, his personnel record cleared, repayment of lost wages and other benefits, and reimbursement of legal fees and court costs.

According to court records, Agrafiotis was suspended for three days in March 2011 for authorizing three retainers totaling $30,000 – $10,000 each – in 2008 to the law firm of Sheehan, Phinney, Bass and Green for services the police commission maintained were not budgeted for in that fiscal year.

Police commissioners said the money used to pay the retainers lapsed at the end of fiscal 2008 (June 30, 2008), so the payment was without proper authorization.

The law firm accepted the retainers but when the issue came up in 2010, it returned about $5,600 in unspent funds.

Agrafiotis said the police commission knew of and approved the retainers in 2008. It was only after the composition of the police commission “drastically changed” that Agrafiotis was disciplined, almost three years after the fact, at a time “when the current members of the commission are taking every opportunity to publicly embarrass and coerce chief Agrafiotis, presumably so that he will leave his job,” Volinsky wrote in court papers.

Agrafiotis maintains he paid the $30,000 in retainers out of his budget but had the needed approval from David Gagnon, then commission chairman. He contends the retainers committed the law firm to providing legal representation for three specific cases .

Agrafiotis came under scrutiny for spending more than $255,000 on private attorneys for the police department in fiscal 2008 and 2009 in various matters, including the case of Officer Jason Defina, who was fired and later reinstated, and police supervisors trying to unionize in 2009.

Defina has since resigned.

In October 2010, Police Commissioner Joanne McHugh was surprised to learn from a New Hampshire Union Leader reporter that the police department paid for a $325-an-hour attorney using a retainer she did not know existed. At that time, Agrafiotis said the retainer used was approved by Gagnon before McHugh became a commissioner in July 2009.

In May 2010, auditors working for the town told officials it was illegal to use money from one fiscal year's budget toward another.

A permanent police chief has not been hired. The acting chief of police is Jon Daigle.

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Pat Grossmith may be reached at pgrossmith@unionleader.com.

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