$450K stolen from Gold Bar’s bank accounts

GOLD BAR — Fraudsters apparently hacked into bank accounts belonging to the city of Gold Bar over the past year and stole nearly half a million dollars.

The city has recovered about $230,000 of the $450,000 taken, Mayor Joe Beavers said Monday.

City officials are working with the bank and are hopeful they’ll recover the rest soon, he said.

“We’re working diligently to chase these things down,” he said.

The case is being investigated by the Clackamas County Sheriff’s Office near Portland, Ore., as part of a probe into a multi-state financial fraud ring, sheriff’s Sgt. Adam Phillips said. The Special Investigations Unit there is working alongside the FBI and the IRS, in part because the case involves alleged wire fraud.

Federal investigators assigned to both Seattle and Portland offices are involved, Phillips said.

The Snohomish County Sheriff’s Office has been working with city officials to keep them informed, but is not part of the investigation, sheriff’s spokeswoman Shari Ireton said.

Gold Bar officials first became aware of the problem around November 2011, Beavers said.

At the time, someone was unsuccessfully attempting to pass fake checks made out from city accounts, he said. The city contacted law enforcement and the state Auditor’s Office.

The city closed out that bank account and opened others, but the hackers managed to get into those as well, Beavers said.

“It was a very knowledgeable group of people,” he said. “They really whacked up on us hard.”

Gold Bar has made headlines in recent months for financial problems connected to public records disputes.

The city still is developing its 2013 budget, but it has been making payroll and paying the bills, despite the added strain from the fraud, Beavers said. City officials also have taken measures to bolster Gold Bar’s online security.

At least one suspect in the fraud ring has been arrested recently on an unrelated charge, Phillips said.

The case’s lead investigator was out Monday, so additional information about the crime ring, suspects and other potential arrests wasn’t immediately available.

Earlier this year the city’s former clerk-treasurer resigned after allegedly stealing $395.

Rikki King: 425-339-3449; rking@heraldnet.com.

More in Local News

These little piggies stay home

Norman, who was spotted last week in Everett, is part of a trio kept as pets by the “pig whisperer.”

Cheering families welcome Kidd, Shoup after 6 months at sea

“I get back Daddy back today,” said one homemade sign at Naval Station Everett.

Stanwood man, 33, killed in crash near Marysville

Speed may have been a factor, the sheriff’s department said.

Street-legal ATVs approved for some roads near Sultan

Supporters foresee tourism benefits. Opponents are concerned about injury and pollution risks.

Jamie Copeland is a senior at Cedar Park Christian Schools’ Mountlake Terrace campus. She is a basketball player, ASB president, cheerleader and, of course, a Lion. (Dan Bates / The Herald)
Cedar Park Christian senior stepping up to new challenges

Jamie Copeland’s academics include STEM studies, leadership, ASB activities, honor society.

Woman, 47, found dead in Marysville jail cell

She’d been in custody about four days after being arrested on warrants, police said.

County plans to sue to recoup costs from ballot drop-box law

A quarter-million dollars could be spent adding 19 ballot boxes in rural areas.

Marilyn Carter (left) is president and Barbara Callaghan is vice president of the AOK Club at Washington Oakes Retirement Community in Everett. Carter personally funds much of the supplies for the club’s annual candy wreath fundraiser so that all sales proceeds can go to local charities. It’s just one of the club’s year-round activities to support local nonprofits. (Melissa Slager / The Daily Herald)
Circles of kindness

Residents of an Everett retirement community create candy wreaths as fundraisers.

County to contribute $1.6M to Everett’s low-barrier housing

The plan appears on track for the council to transfer the land ahead of next month’s groundbreaking.

Most Read