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lake forest park water district
For years one of two employees at the Lake Forest Park water district office, pictured, embezzled money by falsifying records and misappropriating funds. (Photo: http://www.lfpwd.org/)

Getting to the bottom of Lake Forest Park's water district embezzlement scam

BY Jillian Raftery  on February 20, 2013 @ 4:30 pm (Updated: 10:37 am - 2/21/13 )

Dori loves to look after your tax dollars, but most government corruption doesn't come within walking distance of his family's home. Until Tuesday, when a Lake Forest Park Water District official was fired for embezzling over $350,000 over seven years.

Lake Forest Park Water District Board President Bill Donahue told Dori that the fraud was discovered two years ago.

The Lake Forest Park employee put her two children on the payroll and bought office supplies with Water District money, returning the supplies and pocketing the cash.

The fraud was discovered by accident, during a routine audit.

The Lake Forest Park Water District immediately removed the woman; she was placed on unpaid leave indefinitely and her keys were taken away.

Only Tuesday, with the release of an official audit, was she fired. It was a matter of state law, Donahue explained.

When Dori asked how the fraud was possible, Donahue explained that the Water District board members usually meet once a month so that commissioners can approve expenses.

"What we know from the audit report," said Donahue. "It's fairly evident that there were attempts to alter time sheets and embed documentation, perhaps after commissioners signed off on payments."

Though Dori thought the commissioners were negligent, Donahue guessed that the woman accused was a trusted employee who started slowly and embezzled more and more money over time.

Dori did the math. He estimates that the woman stole about $400 from each ratepayer in Lake Forest Park.

Will they get the money back? Donahue says that individual ratepayers probably will not be getting a check from the water district.

"I would anticipate that the recovery from insurance would forestall the need to raise rates in the future and would provide funding for many of the capital projects that have been postponed - that should have been done but have been postponed," said Donahue.

Though Dori is calling for the employee to pay back the money and go to jail, it's unclear if charges will be filed.

"It is my hope," said Donahue, "that justice is served. But we are not privy to what the district attorney or federal attorneys may do with the case. My understanding is that it is of sufficient magnitude that someone is going to prosecute."

Jillian Raftery, Social Media Captain
Jillian Raftery is a social media captain for the Dori Monson Show. She loves the neighborly vibe of the Pacific Northwest and spends as much time as possible outdoors.
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Comments (4)


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  • hpitantso wrote...
    Fired is a good start
    February 20, 2013 5:16 pm
    White Collar Crime using public money enlisting her kids Throw this person in jail put the kid in the system just like any welfare crime
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  • Rangerhawk wrote...
    One can hope
    February 21, 2013 2:39 am
    That she invested that stolen money in Solyndra or something.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • froggy wrote...
    What is really good is
    February 21, 2013 5:18 am
    is that they put her on "unpaid" leave. Most of the time we see where people are put on "paid" leave when it is obvious that they committed some kind of violation that will lead to their dismissal.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • The Real Me wrote...
    Multiple Personality Disorder
    February 21, 2013 8:48 am
    Remember the Fish & Wildlife employee back in the 90's who embezzled about $200,000 from that state agency? He was a trusted Acccounts Payable supervisor, who over a long period of time established trust and took ever increasing amounts of money from the agency. Discovered in a routine audit, he was arrested and fired. He went to trial, but only got 90 days (and required to pay restitution), but because he had claimed he was "sick" only spent time at Western State being "evaluated". He plead out that he had "multiple personality disorder" and ended up getting permanent state disability (you are still paying for this) and never spent a day in jail. Look it up if you don't believe me. Case of Gary Davis, WDFW. Your liberal tax dollars at work.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
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