AUGUSTA – The former town treasurer in Manchester was arrested Monday on 31 counts of aggravated forgery in connection with the disappearance of $212,000 in municipal funds.

Patsy Rollins, 50, of Sidney, was taken into custody while she was picking up belongings from a former residence in Augusta. She was later released on bail.

Rollins was Manchester’s treasurer, tax collector and town clerk between 1998 and 2000, when the money disappeared.

She also is the defendant in a civil lawsuit brought by the town and the Maine Municipal Association. The MMA hopes to recover $150,000 it paid the town as its insurer. The town was not reimbursed for the other $62,000 that was lost.

Rollins was indicted Friday by a Kennebec County grand jury, but the indictment remains sealed.

In a May interview, Rollins professed her innocence and said the town’s books were in shambles when she took over her position. She does not know what became of the money.

“It’s beyond me if it’s even missing,” she said at the time. “How can you prove it without a balanced checkbook?”

Rollins lost her job in September 2000. State police detectives began investigating in April 2001 after learning 70 tax liens had been filed against residents who claimed they paid their taxes on time.

Each count of aggravated forgery is punishable by up to 10 years in prison and a $10,000 fine.