Ex-museum director sued over $1m loss

Fruitlands alleges embezzlement

The former chief financial officer and deputy director of the Fruitlands Museum in Harvard embezzled more than $1 million with the help of three of her children, according to a civil lawsuit filed by the museum.

Peggy Kempton of Hollis, N.H., - along with her children, Bunker, Kristen, and Robert M. Kempton Jr. - allegedly stole the money over seven years, according to the lawsuit, which was filed Tuesday in Worcester Superior Court.

In the early 2000s, Kempton obtained credit cards in the name of Fruitlands to make personal purchases, the suit alleges. She also paid for purchases on personal credit cards with money from Fruitlands, the museum contends.

Peggy Kempton did not return calls yesterday seeking comment.

According to the suit, Kempton rented a cottage from Fruitlands on Prospect Hill in Harvard beginning in October 1999 for $1,400 per month plus utilities. She did not make any rent payments and instead allegedly sent checks and electronic transfers from a Fruitlands' bank account to pay for her utilities.

Kempton was hired by the historical outdoor museum in July 1997.

When her daughter, Kristen, began volunteering in 2001 at Fruitlands, Kempton paid her $10 per hour directly from a Fruitlands' bank account.

In 2007, she paid $18,598.59 to her son Bunker for 1,800 hours of work and $10,522.50 to Kristen for 1,000 hours of work, but no Fruitlands staff member witnessed their work, the museum's suit says.

In addition to her $67,000 salary in 2007, Kempton withdrew more than $40,000, according to the allegations.

"The museum has contacted the donors," spokesman Lynn Kettleson said.

"Everybody was obviously concerned that the trust was violated," he added.

The suit maintains that Kempton also adjusted financial books and records to conceal fraudulent charges and payments.

Kempton abruptly left Fruitlands in February, without providing a reason, the suit states. Attorney General Martha Coakley's office is investigating, according to Kettleson.

In the suit, Fruitlands also has accused its financial consultant, Solar & Kilcoyne of Leominster, with negligence for not noticing the altered books.

The museum has since appointed a new financial officer, Tim Firment, Kettleson said.