Embezzlement Leads To Closure Of Oregon Weekly Newspaper

An Oregon weekly newspaper has had to lay off its entire staff and halt print after 40 years after a former employee embezzled its funds, its editor said.

The alternative weekly, founded in 1982, printed 30,000 copies each week to distribute for free in Eugene, the third-largest city in the state and home to the University of Oregon. I Photo: Matt Dey Facebook

This was a devastating blow to a publication that serves as a source of information in a community that, like many others nationwide, is struggling with growing gaps in local news coverage. Claire Rush reported for the Associated Press (AP).

About a week before Christmas, the Eugene Weekly found inaccuracies in its bookkeeping, editor Camilla Mortensen said.

It discovered that a former employee who was “heavily involved” with the paper’s finances had used its bank account to pay himself $90,000 since at least 2022, she said. The paper also became aware of at least $100,000 in unpaid bills — including to the paper’s printer — stretching back several months, she added.

Additionally, multiple employees, including Mortensen, realized that money from their paychecks that was supposed to be going into retirement accounts was never deposited.

When the paper realized it couldn’t make the next payroll, it was forced to lay off all of its 10 staff members and stop its print edition, Mortensen said.

The alternative weekly, founded in 1982, printed 30,000 copies each week to distribute for free in Eugene, the third-largest city in the state and home to the University of Oregon.

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