SEATTLE NEWS ARCHIVES & FEATURES

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

Feb 20, 2013, 4:30 PM | Updated: Feb 21, 2013, 10:37 am

For years one of two employees at the Lake Forest Park water district office, pictured, embezzled m...

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/)

(Photo: http://www.lfpwd.org/)

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.”

Seattle News Archives & Features

The location of the Vertical Evacuation Tower will be near the Westport Marina. It will be the thir...

Tom Brock

Rising above the risk: Westport breaks ground on Washington’s newest tsunami refuge

The city of Westport broke ground Saturday on what will become Washington state's latest tsunami-safe location: a new vertical evacuation tower.

3 days ago

Andre Sayles (2) bite of seattle shooting suspect...

Tom Brock

Texts on hold: SPD delays Bite of Seattle shooting records

Interim Seattle Police Chief Andre Sayles says he needs more time before he can release the police department's internal communications the night of the deadly "Bite of Seattle" shootings.

23 days ago

Two alleged wire thieves caught in the act on Highway 12 near Aberdeen. Authorities estimate they d...

Tom Brock

Grounded: Grays Harbor deputies cut short highway wire heist

Deputies in Grays Harbor arrested two men Saturday for trying to steal hundreds of feet of wire along Highway 12.

23 days ago

A huge tree fell in the parking lot of Burien's Seahurst Park, crushing six vehicles....

Tom Brock

Fallen tree crushes parked cars at Burien’s Seahurst Park

A huge tree fell in the parking lot of Burien's Seahurst Park Monday and crushed six cars.

29 days ago

Two separate shootings in Seattle's Belltown neighborhood left two people dead and three others inj...

Tom Brock

Belltown violence: 2 separate shootings leave 2 dead, 3 injured early Sunday morning

Two separate shootings in Seattle's Belltown neighborhood overnight left two people dead and three others injured.

1 month ago

Associated Press

Teenager arrested and 5 others sought in deadly July 4 fire in Washington state

EAST WENATCHEE, Wash. (AP) — An 18-year-old in Washington state has been arrested for the investigation of manslaughter and arson in connection with a deadly July 4 fire, a county sheriff said Thursday. The teen from Kent was among a group of people setting off illegal fireworks from the back of a truck when one […]

1 month ago

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