Joseph Michalik, 58, of Shenandoah, was charged Wednesday by Shenandoah Police with two third-degree felony counts of Theft of Property Lost, Mislaid, or Delivered by Mistake and Theft by Failure to Make Required Disposition of Funds Received, according to court documents.
According to the affidavit of probable cause, the investigation began after officials with the Borough of Shenandoah received a report prepared by Certified Public Accountant Joseph Yanushefsky on Oct. 14, 2025. The report allegedly revealed that Michalik, while employed by the borough, received several workers' compensation checks from MRM Workers' Compensation Fund of Sewickley, Pennsylvania, that he was required to surrender to the borough but instead retained.
Police allege the checks, issued between September 2020 and July 2021, totaled $6,957.07. The payments were made while Michalik was receiving his regular salary from the Borough of Shenandoah during a work-related injury leave. Under the borough's policy, those workers' compensation payments were to be turned over to the municipality.
Investigators noted that Michalik had previously demonstrated an understanding of that requirement by surrendering 18 other workers' compensation checks totaling more than $21,608 during the same period. However, police allege he retained eight additional checks instead of remitting them to the borough.
The investigation determined that the checks were deposited through First National Bank after being presented to PNC Financial Services, which administers the MRM Workers' Compensation Fund. Police said bank records later confirmed the checks were deposited into an account held by Michalik.
According to investigators, Michalik knowingly failed to transmit the checks or their value to the Borough of Shenandoah and instead converted the funds for his own use.
Michalik was arraigned Wednesday before Magisterial District Judge Anthony Kilker, who set unsecured bail at $25,000. A preliminary hearing has been scheduled for 11 a.m. on July 9, 2026.