MORTON, Wash. — State auditors found a former City of Morton employee is responsible for more than $930,000 in "misappropriated" city funds.
Investigators said the city clerk/treasurer took the money over eight years.
She is currently under criminal investigation by the Morton Police Department and the Lewis County Prosecutor's Office.
Since the woman has not been criminally charged, KING 5 News is not naming her.
According to the audit, the employee obtained the funds through ATM withdrawals and deposited funds into her account that were originally paid by city residents in cash and check payments made to the city.
Investigators said the funds were taken between February 2013 and December 2021.
Auditors said the city placed “immense trust in the Clerk-Treasurer” despite several “red flags” auditors brought to the attention of city leaders in past investigations.
In 2013 state auditors said they discovered the woman wrote herself a city check for $2,000.
The woman, and city leaders, said they considered the check a loan, and the woman paid the amount back.
Then in 2019 investigators told the state’s Department of Retirement Services she retired from Morton in an attempt to receive retirement benefits, despite still being employed by the city.
Auditors said after informing city leaders about the past incidents, the employee was not disciplined.
According to a statement released by the city Monday, the employee resigned in 2021 after the city split the Clerk-Treasurer position into two separate jobs.
The statement said insurance would cover the stolen funds and the city “will be pursuing all legal options” to ensure the former employee is prosecuted.
“The city is angry and disappointed to know this happened and recognizes the community will be too,” read the statement.
Morton Mayor Rick Mead said he could not comment on the case because it is an ongoing investigation but said the city is following recommendations from the auditor’s office to prevent future incidents, including more oversight over city finances.