Danbury resident Kyle Lyddy has been arrested for allegedly misappropriating $500,000 from Match Marketing Group, the Norwalk company where he formerly worked. As a result, he has resigned from chairing the independent Oz Griebel-Monte Frank gubernatorial campaign.
Norwalk police received a complaint on Aug. 1 from Match Marketing alleging that Lyddy misappropriated around $500,000 from the company over a two-year period. He was arrested on Sept. 11 and was released the same day after posting a $100,000 bond. He is due in Superior Court on Sept. 19.
Lyddy had served until April as the head of the Sandy Hook Permanent Memorial Commission, which was responsible for creating a memorial for the 26 students and teachers who died in the 2012 Sandy Hook Elementary School shooting in Newtown.
In a statement, Newtown First Selectman Dan Rosenthal said, “I have known Kyle Lyddy and his family for most of my life, and the news of his arrest comes as a complete shock. Kyle has volunteered extensively and admirably for our community for many years, and while these charges are serious, he deserves his day in court.”
He added that “at no time did Kyle have access to town funds, and there are no complaints from donors alleging malfeasance. Should a complaint arise, we stand ready to investigate promptly and fully.”
Newtown resident Frank, who is running for Connecticut lieutenant governor on the Griebel ticket, tweeted, “I am devastated about the news concerning Kyle Lyddy. I’m as shocked as everyone else who knows him.”
Frank noted that campaign spokesman Chris Cooper is assuming the campaign manager role.