By Scott North and Brian Kelly
Herald Writers
Embattled Marysville City Council member Tom Grady stepped down from his post Wednesday after cutting a deal with prosecutors that he hopes will spare him from felony forgery charges.
Grady resigned as Snohomish County prosecutors prepared to charge him with repeatedly forging documents to hide the disappearance of $38,000 from the Marysville Albertson’s, where he was manager for 13 years.
Under the agreement, Grady will be reconsidered for a pre-prosecution diversion program that had earlier rejected him for minimizing his misconduct, said Michael Downes, an assistant chief criminal deputy prosecutor.
If Grady is accepted, he must admit in writing that he forged bank deposit slips and other documents. He also will be required to pay back the missing $38,000.
"He is going to have to agree to repay this. And then he is going to actually have to do it. And if he doesn’t, he is going to have a big problem," Downes said.
Grady did not return phone calls. His attorney also declined comment.
Grady resigned in a letter submitted to Mayor Dave Weiser.
"I believe that this is in the best interest of the city and it is the right thing to do given the circumstances," Grady wrote.
Grady won his council seat in November in a hotly contested general election race with incumbent NormaJean Dierck, whom he beat by 161 votes.
"I’m glad he finally did the right thing. One wonders why it took so long," Dierck said.
Although there were rumors about Grady’s legal troubles, confirmation didn’t surface until late November, when prosecutors announced that police in Marysville and Everett had been quietly investigating him for months.
Grady allegedly forged armored car deposit slips and other documents to hide missing money at Albertson’s, starting as early as 1991. When confronted by store officials, Grady resigned and submitted a written apology for what he described as a "coverup."
The city will advertise the council vacancy, and candidates who submit a letter of interest will be interviewed by the council sometime in the future, city spokesman Doug Buell said.
Dierck said she hopes to be appointed. She said she hopes the council "does the right thing and appoints the person with the highest votes cast."
But council member Mike Leighan, a Grady supporter, said he hopes the council picks someone who hasn’t already served on the council.
Leighan also had said he hoped Grady would be able "weather the storm," and that he was "really surprised" more people hadn’t come out to support Grady, who spent many years involved with community groups.
"In one way, I’m sorry that the full story isn’t going to come out at a trial," he said.
Former council member Jim Brennick said he believed Grady’s resignation was necessary.
"I feel his decision is good, and his personal actions are not part of the Marysville City Council," Brennick said. "He needs to step away and get his personal issues resolved."
Weiser said he did not ask Grady to resign. He had supported Grady’s candidacy, but replied, "I’m not going to go down there," when asked if he has regrets.
The mayor had known of Grady’s legal problems since April, and was roundly criticized for keeping quiet. In a statement released Wednesday, Weiser said he remained silent to protect the city from lawsuits. He said he continued to support Grady’s campaign because the investigation had not been completed.
"Just because there’s an investigation doesn’t mean it comes up with a filing of charges," Weiser said, adding that he wanted to "let the system run its course."
Prosecuting attorney Jim Krider approved the agreement reached with Grady. Justice is served, he said, because Grady will reap none of the financial or political benefits from his alleged misdeeds.
Grady’s resignation was necessary in this case because Grady would have benefited from diversion in a way people not in elected office cannot, Krider said. If convicted of the felonies, he would have been barred from holding office, or even voting. But Grady will have no felony convictions if he completes the diversion program.
Krider said Grady volunteered to step down as part of the agreement.
"I think this provides the protection the public deserves and was concerned about," he added.
You can call Herald Writer Scott North at 425-339-3431
or send e-mail to north@heraldnet.com.
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