By Kate Reardon
Herald Writer
COUPEVILLE — The treasurer of a private water company has been charged with taking more than $40,000 from the small company, which serves the Greenbank neighborhood.
Cheryl Caveness, 45, was charged this week with seven counts of first degree-theft and 32 counts of second-degree theft for allegedly taking $41,649.74 from the Holmes Harbor Water Co. and its sister company, the Greenbank Beach and Boat Club.
Caveness, who had been the treasurer of the company since 1995, resigned Jan. 29, 2001.
Court papers say a motive for the theft was a gambling and drug problem, and that Caveness’ family was in dire financial straits as a result.
The water company has about 125 members and 57 residential customers in the Greenbank neighborhood, according to state Department of Health, which monitors water systems in the state.
Caveness could not be reached for comment. The president of the company, Gary Zettle, also could not be reached for comment.
The Island County Prosecutor’s Office alleges that in January 2000 Caveness began writing checks to herself out of the company’s account. She was authorized to pay herself $400 a month, prosecutor Greg Banks said.
But prosecutors allege that during 2000 and into January 2001 Caveness wrote checks to herself and her friends and paid off credit card debt and other personal bills. She also allegedly took $8,000 in payments that were meant for the association.
Caveness and her husband, Warren, filed for bankruptcy last year.
The Holmes Harbor Water Co. is separate from the Holmes Harbor Sewer District, which was in the spotlight recently for a controversial $20 million bond sale. The sewer district serves about 500 customers in a golf course community near Freeland.
You can call Herald Writer Kate Reardon at 425-339-3455
or send e-mail to reardon@heraldnet.com.
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