$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.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Northshore School District bus driver Stewart O’Leary pictured next to his buses shattered drivers side windshield on Friday, Feb. 14, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
‘Put me in, coach’: Bus driver back at work after struck by metal bar

Stewart O’Leary, a Northshore employee, has received national attention for his composure during a frightening bus trip.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

An American Robin picks a berry from a holly tree on Thursday, Feb. 13, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Calling all birders for the annual Great Backyard Bird Count

The Audubon Society will hold its 28th annual Great Backyard… Continue reading

A view of one of the potential locations of the new Aquasox stadium on Monday, Feb. 26, 2024 in Everett, Washington. The site sits between Hewitt Avenue, Broadway, Pacific Avenue and the railroad. (Olivia Vanni / The Herald)
Initial prep work for AquaSox stadium to start, with $200k price tag

The temporary agreement allows some surveying and design work as the city negotiates contracts with designers and builders.

Aaron Kennedy / The Herald
The Joann Fabric and Crafts store at 7601 Evergreen Way, Everett, is one of three stores in Snohomish County that will close as part of the retailer’s larger plan to shutter more than half of its stores nationwide.
Joann store closure plan includes Everett, Arlington, Lynnwood locations

The retail giant filed a motion in court to close approximately 500 stores in the U.S.

Lynnwood
Lynnwood police: 1 suspect in custody, 1 at large after attempted carjacking

Beverly Elementary School went into a precautionary lockdown Thursday afternoon. Numerous officers continue to search for the second suspect.

Candidates announce campaigns for Everett city council seat

Ryan Crowther, founder of the Everett Music Initiative, will challenge incumbent Paula Rhyne for the District 2 seat.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.