OLYMPIA, Wash. — Washington state auditors said they discovered what may be the largest example of internal fraud against a state agency ever.
Investigators said a management analyst at the Office of Administrative Hearing paid himself more than $878,000 in agency funds between June of 2019 and May of 2023. The employee is accused of using the agency's credit card to make payments to businesses he owns.
A spokesperson at the state Auditor's Office said that is the highest alleged internal theft of state agency funds, perhaps ever. Records only track figures dating back to 2009, according to the spokesperson.
According to the audit released Monday, “There were no records available to show any business activity for them other than charging the Agency for no clear purpose."
Investigators said some of the stolen money was spent on gift cards and went toward the employee’s cellphone bills.
Olympia police are investigating.
The employee went on “unexpected” leave when auditors contacted the agency, before quitting a month later, in June of 2023, according to the auditor’s office.
The Office of Administrative Hearings conducts hearings for citizens who have complaints against state agencies.
The management analyst under investigation was the only employee with access to the credit card and its statements, so Washington Auditor Pat McCarthy said the employee was able to spend the money without any oversight.
"The good people that work at the OHA, didn't want this to happen. But it did because of this lack of internal controls, it seems so simple. But you know what, people, people get complacent. And I think this is a wakeup call for everyone,” said McCarthy.