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A large sign greets travellers on the outskirts of Bridgetown, Nova Scotia, on Wednesday, June 1, 2011. RCMP say they have laid theft and fraud charges following an investigation into money missing from the town.Mike Dembeck for The Globe and Mail

Police in Nova Scotia have laid theft and fraud charges against a 50-year-old woman following an investigation into money missing from a financially troubled town.

The investigation began in May, two weeks before the council and mayor of Bridgetown quit en masse amid allegations the town's finances were in disarray.

The provincial government launched an external audit that concluded Bridgetown's financial problems may have started as early as May 2006 and continued until earlier this year.

The audit by consulting firm Grant Thornton also said that more than $113,000 was misappropriated, though close to $34,000 was later returned.

Melissa Jane Young of Belle Isle, N.S., has been charged with one count of theft over $5,000 and one count of fraud over $5,000.

She is to appear in provincial court in Annapolis Royal, N.S., on Feb. 6.

RCMP said no additional charges are expected.

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