CHESTERFIELD, Ind. — Arbitration alone will determine whether two former Chesterfield employees implicated in the misappropriation of public funds will return to work.

John Brooke, a Muncie attorney representing fired Chesterfield maintenance workers Christopher and James Walters, said Tuesday that an arbitrator ordered Nov. 18 that the brothers return to their jobs and receive back pay.

But attorney Bill Kreegar, representing the town of Chesterfield, said the decision was made by a panel of union officials and the matter has not yet gone to arbitration.

“What happened on Nov. 18 was a joint-grievance committee made up entirely of union representatives,” Kreegar said. “By a split vote, they ruled in favor of Chris and James Walters, but the joint-grievance committee did not even look at the facts of the case.”

In October, the State Board of Accounts filed a 33-page audit naming the Walters brothers among five town employees who allegedly defrauded Chesterfield of more than $250,000.

The audit alleged that the brothers accepted $37,600 for false claims for work. No criminal charges have been filed but the Indiana Attorney General’s office filed a civil suit against the brothers, former clerk-treasurer Chris Parrish, former town marshal James Kimm and former part-time police officer Joseph Brown seeking reimbursement.

The Walters brothers were fired Sept. 24 and challenged their termination under a collective bargaining agreement between the Teamsters union and the town of Chesterfield, Brooke said.

“They should have been back at work on the 19th of November,” Brooke said. “The brothers would prefer that the town do this voluntarily and abide by the contract, but we haven’t ruled out litigation.”

Kreegar said the ruling was just the third step in the union grievance process. Both the town and union must agree upon an arbitrator, Kreegar said, but there’s no telling when an arbitration may actually occur since the union must make the request.

Christopher and James Walters worked for the town for more than 10 years. Brooke said payroll records that would clear them of wrongdoing were lost and never reached the State Board of Accounts.

“Christopher and James worked on projects as directed by Chris Parrish,” Brooke said. “They turned in time records that would have shown the hours and locations that they worked on forms he created. Parrish was, in essence, their supervisor.”

Brooke described the projects as “very visible, public work.”

Contact Justin Schneider: 640-4809, justin.schneider@heraldbulletin.com