BIDDEFORD — The former president of La Kermesse Franco-Americaine festival has been indicted by the York County Grand Jury on theft charges against the festival and against the association of condominiums where she lived. The indictment comes just two weeks before a scaled-down version of the 28th annual festival will be held.

Priscille Gagnon, 70, of Biddeford, was indicted on two charges of theft, a class B felony, in excess of $10,000. One charge is against the festival and one is against the Western Oaks Condominium Association, for which Gagnon served as treasurer. She was also indicted on two counts of misuse of entrusted property, which is a class D misdemeanor, with one count related to each of the organizations.

The charges involving La Kermesse date from 2004 to March 1, 2010, according to the indictment, while the charges involving Western Oaks date from 2005 to March 1, 2010.

An indictment is not a finding of guilt but simply a determination that enough evidence exists for a trial. If convicted of the crimes, Gagnon faces a maximum sentence of 10 years in jail and $20,000 in fines for each of the theft charges; and 364 days in jail and $2,000 in fines for the each count of the misdemeanors.

When reached by telephone on Wednesday, after the indictment was issued, Gagnon said she did not have time to comment. Her attorney, Charles Walter Smith, of the law firm Smith Elliott Smith & Garney of Saco, could not be reached for comment by press time.

The complaint against Gagnon was brought by the Office of the Maine Attorney General. It was referred to that office by the Biddeford Police Department in March, said Assistant Attorney General Leanne Robbin.

Biddeford Police Chief Roger Beaupre learned about Gagnon’s alleged theft both in his capacity as a police officer and as a former board member of La Kermesse, said Robbin.

“Because of his relation to La Kermesse,” Robbin said, “it was determined our office (rather than the Biddeford Police) should conduct the investigation.”

La Kermesse Vice President Raymond Gagne said that Gagnon had access to a line of credit with PeoplesChoice Credit Union, which the La Kermesse board voted to close in 2004.

Unbeknownst to the organization’s board, he said, Gagnon kept the line of credit open.

When he found out the account was still open and in use, “I was dumbfounded,” said Gagne.

The account eventually fell into arrears, he said, and PeoplesChoice notified assistant treasurer Leo Bourgeault.

The organization’s board members were unaware of the continuing use of the People’s Choice line of credit because, said Gagne, no one besides Gagnon saw the bills.

Treasurer Paul Gagne, who is not related to Raymond Gagne, said that in addition to Gagnon’s use of the line of credit, which he also confirmed the group was notified about, there were other incidents of possible misuse of the group’s funds, such as the use of the organization’s debit card from Saco & Biddeford Savings Bank.

The indictment against the festival’s former president is just the latest trial facing the festival, which this year has had to significantly cut back on much of the entertainment, vendors and activities that it usually offers.

The festival has been facing financial difficulties in recent years.

Last year, the free block party and fireworks were canceled. This year the festival has been cut back to three days instead of four, has moved its location to the Biddeford Ice Arena and Expo, and the traditional parade has also been called off.

The festival organization also owes approximately $30,000 to vendors with whom it did business for last year’s festival.

Officials for the City of Biddeford say the organization owes $25,000 to the city for damaging St. Louis field, where the festival had been held since its inception.

Because the organization hasn’t paid the city for the damage, the city refused to allow the festival to be held at St. Louis field this year.

Paul Gagne declined to comment about Gagnon’s indictment. He said he’s unsure whether the indictment will hurt or help the festival. Maybe some people will support it, he said, because they’ll think, “no wonder they were in financial trouble.” Or, he said, they may wonder why other board members didn’t know what was going on.

“It’s just sad,” said Mayor Joanne Twomey, who is of French-Canadian descent. “I always enjoyed the festival. ”¦ It’s just left me not feeling right.”

— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.