Treasurer accused of siphoning $40K in Whidbey water funds

She allegedly paid her husband, who was the association’s water manager, for work he did not do.

By Jessie Stensland / Whidbey News-Times

The former secretary/treasurer of a North Whidbey community association is accused of stealing more than $40,000, court records state.

Johanna M. Boyle, 42, is accused of paying her husband, who was the association’s water manager, thousands of dollars for work he did not do over a seven-year period, according to the police report.

Prosecutors charged Boyle in Island County Superior Court Oct. 16 with one count of theft in the first degree, with an aggravating condition alleging she used her position of trust to commit the crime.

The missing money came to light in 2016 after a wife and husband were sworn in as the new secretary/treasurer and president.

The woman replaced Boyle, who had held the position for years.

The couple started going through the books and found that records were missing and what appeared to be discrepancies.

The association hired an Oak Harbor accounting firm to look through the records, and accountants identified $50,000 in unaccounted for funds; a deputy with the Island County Sheriff’s Office later refined that to $43,000, including $13,000 in cash, his report says.

The deputy’s report explains that residents of the association are charged $50 for water disconnections. Half of the fee goes to the association and the other half to the water manager.

The ledger showed that money was collected from residents for 1,124 disconnections over the seven years in the 60-house community, but only three disconnections were noted in the records. The deputy spoke with homeowners who supposedly had water disconnections, but they all denied that ever happened.

Deposits in the association’s bank account did not show that the association’s half of the fees were collected.

Other missing money was also noted, the deputy wrote, including a lack of deposits to show that Boyles paid their water bills.

This story originally appeared in the Whidbey News-Times, a sibling paper of The Daily Herald.

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