Everett, Wash.
Published: Thursday, August 21, 2008

IRS tries to seize Arlington theft suspect's property

The woman, who was once an Arlington city employee, is accused of stealing to pay her mortgage.

By Jackson Holtz
Herald Writer

 ARLINGTON -- The Internal Revenue Service is trying to seize two properties owned by a former Arlington city employee who is accused of taking around $775,000 from the city.

According to court documents filed Monday in U.S. District Court in Seattle, IRS officials are trying to have two properties the woman owns forfeited to the government.

The woman, 56, allegedly confessed to investigators that she stole the money and used it to pay her mortgage and for home improvements, the documents said.

She allegedly made the payments by U.S. mail, which may constitute mail fraud, a federal crime.

The two properties are worth about $730,000, county property records show.

Snohomish County sheriff's detectives also are investigating the Arlington woman for possible first-degree identity theft, first-degree theft and forgery, according to court papers.

The woman is not under arrest and no charges have been filed.

She worked for Arlington for 30 years and spent part of her time on the job altering as many as 103 checks and depositing them into her own bank account, according to documents.

Between February 2002 and June 2008, the woman is suspected of taking $775,753.98 from the city's general fund, the documents said.

Investigators believe the woman forged signatures and created false supporting documents that made it appear the checks were for employee retirement and other benefit accounts.

On Aug. 4, detectives served search warrants at the woman's bank and her home.

In addition to bank and investment records, computers and other evidence, police also allegedly seized marijuana plants, scales and a ledger listing apparent drug sales, according to documents.

The woman retired at the end of May.

On July 11, a city accountant found a suspicious check made out to the woman, prompting the investigation.

Reporter Jackson Holtz: 425-339-3437 or jholtz@heraldnet.com
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