The legal fight over town finances in Swansea has reached a new level.

On Sept. 15, the town’s auditor, John Smith, filed a countersuit against the town officials who originally filed a lawsuit against him, Council Members Michael Luongo, Doris Simmons and former Council Member Barrett Black.

Mayor Viola McDaniel and Town Clerk-Treasurer Margaret Harvey are also named in the lawsuit seeking to find disclosure on $3.3 million in town assets that were not accounted for in the town audit.

Smith’s countersuit alleges “malicious prosecution and defamation.”

It’s the latest legal action to come about from an audit performed by Brown that found $3.3 million in town assets unaccounted for.

Brown points out in the counter suit that town officials refer to the $3.3 million as “missing” when in fact it’s “understated.”

He also points out that the ending fixed assets balance was not carried forward for the year as it has been in the past by town officials.

But Luongo and Simmons said they have not received the explanation for which they have continued to ask.

It's the latest development in a fight that has continued for months, with tensions mounting as council approached the budget and received the audit this summer. Luongo, Simmons and Black filed their suit Aug. 17, days before Swansea passed the 2022-23 budget 3-2 on Aug. 22, with Simmons and Luongo casting the dissenting votes.

Luongo and Simmons have repeatedly sought an explanation for the missing funds, but say they could not get the mayor and two other council members to agree to a disclosure.

Their suit requests that the court determine which person or persons is responsible for the missing money.

Brown did not respond to requests by The Chronicle for an interview on the suit.

Luongo said the counter suit doesn’t bother him at all and he is prepared for the battle.

“Bring it on,” he said

Simmons said she expects Brown will face a major fight. Their attorney, Jake Moore, may file a “counter-counter suit,” she said.