Staff Writer

La Kermesse directors say an ongoing state investigation focuses on possible misuse of a line of credit by former festival president Priscille Gagnon.

 Raymond Gagne, the festival’s vice president, said he learned about two months ago that a La Kermesse account at PeoplesChoice Credit Union was delinquent, even though it was supposed to be closed six years ago. Leo Bourgeault, the group’s assistant treasurer, called Gagne as soon as the credit union notified him of the delinquency.

 Gagnon said festival directors in 2004 decided to pay off and close the account with PeoplesChoice, formerly St. Joseph’s Credit Union, with a loan from Saco and Biddeford Savings Institution. He said Gagnon apparently paid off the credit union loan at that time but did not close the account.

Gagne said it appears Gagnon used the La Kermesse line of credit to make personal purchases and made payments on the balance until about six months ago. Payments on the account were two months behind when the credit union notified Bourgeault, he said.

“If she hadn’t been delinquent, we never would have noticed,” Gagne said. “I confronted her when I found out about it and she was in denial at first, then admitted to it.”

A home phone number listed in Gagnon’s name has been disconnected and she could not be reached for comment.

Gagne said others involved with La Kermesse were unaware of what was happening because Gagnon “hid it on us.” She was the only member with a key to the festival’s post office box and apparently took bank statements before anyone else saw them, he said.

“It really had an impact on all of us,” Gagne said. “All our directors are upset, it hurt them bad.”

Gagne said he is not sure how Biddeford police became aware of the situation, but festival directors have cooperated fully.

The Biddeford Police Department sent the investigation to the state Attorney General’s Office because Chief Roger Beaupre is a former treasurer for the nonprofit group, according to Spokesman Kate Simmons of the Attorney General’s Office. She said it is common for departments to forward cases when a member of the investigation team could have a potential conflict of interest.

While the investigation is ongoing and no charges have been filed, Gagne said La Kermesse has already made changes to the way the group is run. He said there now are two keys to the post office box and two members alternate mail pickup. The mail is then given to a third person.

Gagne said he hopes the community will continue to support the festival. He said people should feel confident their money is not being mishandled and noted there is no indication Gagnon misused festival funds. 

Gagne said directors also are focused on planning this year’s festival, slated for June 25 and 26 at the Biddeford Arena and Expo Center. The two-day event includes musical performances, a petting zoo, La Kermesse Idol competition and a church service.

City officials earlier this year said the festival cannot be held on St. Louis Field because of past damage, displaced athletes and an outstanding bill of $25,000 for damage from last year’s festival. Gagne said he believes the festival should not be held responsible for the damage and the bill remains unpaid.

Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.