MILO, Maine — Jeffrey Gahagan has resigned as both Milo’s town manager and the treasurer of the Three Rivers Kiwanis club in the midst of an investigation by the Piscataquis County Sheriff’s Department, according to Piscataquis County District Attorney R. Christopher Almy.

Gahagan resigned as town manager on Friday, a day after resigning as the treasurer of the Three Rivers Kiwanis of Milo and Brownville. Milo Police Chief Damien Pickel said health reasons were the cause for Gahagan resigning as town manager.





The Piscataquis County Sheriff’s Department is investigating allegations that $45,000 was taken from the Kiwanis club while Gahagan was treasurer, according to Sheriff John Goggin.

“The case is very serious. The sheriff’s office is investigating it,” said Almy. “When their investigation is done, we’ll look at it and look at what charges are appropriate.”

A telephone message left for Gahagan was not immediately returned Wednesday evening.

Goggin and Lt. Bob Young are leading the investigation.

Goggin said he has seen Gahagan’s letter of resignation addressed to Kiwanis club president Jan Barton in which Gahagan allegedly addresses the missing money.

“The letter is part of an ongoing investigation. It is in the hands of the Sheriff’s Department that is conducting the investigation,” Barton said Wednesday.

She also confirmed that $45,000 is missing from the club’s treasury.

“Our club is saddened and dismayed about the circumstances that caused him to resign,” Barton continued. “The club is strong. We’ve served the community of Milo for 20 years in various ways and will continue to do that.”

Pickel said Milo has not yet named a new town manager. The selectmen will address the issue during their next meeting, he said.

Barton said the Three Rivers Kiwanis club will implement measures to make sure this doesn’t happen again.

“We’re putting some things in place to assure as much as anyone can — to make sure it doesn’t happen in the future,” said Barton.

Gahagan does not face any charges but he has retained Newport attorney Dale Thistle, said Goggin. Thistle could not be reached for comment Wednesday evening.