Collection Agency President Pleads Not Guilty to Theft Charges

The head of a collection agency in Massachusetts entered a not guilty plea last week to charges that he stole money from the City of Boston, a client for which the agency was doing collection work.

A grand jury returned an indictment earlier this month against Stephen Colahan of Walker Associates, Inc. (“Collection Agency Head Indicted for Alleged Theft of $2.7 Million From City of Boston,” May 6). The office of the Massachusetts Attorney General alleges that Colahan transferred more than $2.7 million from a City of Boston bank account to his own company’s account June 2001 through August 2006.

Walker Associates had been collecting on behalf of Boston since 1995. The money Colahan allegedly took was intended for the city, under the terms of the collection contract.

Last week, before Suffolk County Superior Court in Boston, Colahan entered a plea of not guilty to charges of larceny over $250 by continuous scheme and procurement fraud. He was released under his own recognizance.

Colahan is scheduled to return to court on May 29 for a status conference.

Attempts to reach Colahan were unsuccessful.