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Essex County prosecutors are investigating whether Nahant's town administrator improperly funneled public contracts to favored contractors.
Andrew Bisignani resigned abruptly last week, the day before state police raided Town Hall, seizing computers, paperwork, and lists of the town's vendors.
Selectman Michael Manning tells The Boston Globe the raid was part of what he called a "very broad investigation" into spending by Bisignani. Manning says that investigators appear to be focused on Bisignani's use of emergency contracting to hand out work without a normal public bidding process.
A spokeswoman for the Essex district attorney's office confirmed the investigation, but did not provide details.
Bisignani's attorney said her client "voluntarily resigned to avoid any appearance of impropriety as town administrator."