LYNNWOOD – A Lynnwood Police Department deputy chief pleaded guilty this morning to stealing thousands of dollars seized in criminal investigations over several years.
Paul C. Watkins, 50, was charged with one count of theft from a federal funded local agency. He made his plea in U.S. District Court in Seattle. He is scheduled to be sentenced Feb. 22.
According to the plea agreement Watkins admitted that while serving as the commander of investigations from 2001 to 2004 he stole money that had been seized during criminal investigation. Watkins “abused his authority by falsely representing that he was returning money to the owner, when in fact in many cases he was keeping the seized money for himself,” prosecutors wrote.
Prosecutors allege that Watkins stole between $70,000 and $120,000.
He faces up to 10 years in prison and a $250,000 fine. Federal prosecutors expect to ask for lengthy sentence. They allege that Watkins obstructed justice when he destroyed records related to the thefts just hours before a search warrant was served in the case.
Watkins declined to comment this morning at the hearing.
Watkins became the subject of a “public corruption” investigation after Lynnwood officials discovered money missing when police conducted an internal audit of cases involving seized evidence. Police Chief Steve Jensen asked the FBI in June to investigate.
Watkins, a 24-year Lynnwood police veteran, was placed on administrative leave late last month and relieved of his police authority.
Lynnwood police provided the FBI with documents, court records and statements indicating that in 2002, Watkins, while serving as the commander of the department's criminal investigations division, may have stolen evidence from a 1996 robbery investigation, according to a search warrant affidavit. Police said Watkins took $14,046, several grams of suspected cocaine and two guns, and there is no record that the items were returned.
When questioned, Watkins said he had picked up items at the Snohomish County Courthouse in Everett and put them in Lynnwood evidence lockers but didn't make entries into the department's logbook, a violation of department policy, according to the affidavit.
In addition, Lynnwood police noted numerous occasions when money was seized during criminal investigations and turned over to Watkins for processing, but no forms were filed to document where the cash ultimately went. According to the FBI's affidavit, there were multiple instances found where no records exist to show the seized money was received by the police department, subject to a forfeiture hearing or returned to the owner.
The police department's own audit found 62 transactions involving about $90,000 from October 2001 to October 2005 that specifically involved Watkins. The proper paperwork was absent in each case, the affidavit said.
Watkins has had a history of financial problems, including seeking bankruptcy protection four times between 1987 and 2004. At one point, he faced a $10,000 lien filed by the Internal Revenue Service, according to court papers.
The FBI agent said in the affidavit that a check of Watkins' financial records showed he "made several suspicious cash deposits into his bank account" during the time period now under investigation. Among those questioned were more than $23,000 in cash deposits between 2000 and 2006.
