The former office manager of the Lake Forest Park Water District pleaded guilty today in U.S. District Court in Seattle to wire fraud after she embezzled more than $350,000 from the water district, according to the U.S. Attorney’s Office.
The water district serves about 900 customers in North King County, with an annual budget of about $600,000.
According to the federal indictment, Jackee Bormann-Zweekhorst used a variety of schemes between 2004 and 2011 to embezzle the money. She used the water-district credit card for personal expenses, including college tuition for her child, hot-tub parts and service, boating and automotive equipment, and fishing gear.
She also falsified time cards, billing the water district for more than $100,000 in wages for work she said was done by her three children.
In addition, she put in for about $70,000 in reimbursement for things she either did not buy, or bought for personal use.
The indictment also says she used the water district’s credit card in the excess of $90,000 to pay college tuition and buy hot tub parts, boating and automotive equipment. She also falsified reimbursement on her personal credit card for more than $70,000.
The expenses were approved by a three-member commission, and submitted to King County.
State auditors noticed a whited-out receipt during a routine review, kicking off a larger investigation.
Since then, the entire board of commissioners has been replaced, and one of the members is a designated treasurer.
Bormann-Zweekhorst will be sentenced Dec. 13. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.