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The Today File

Your guide to the latest news from around the Northwest

March 4, 2014 at 4:18 PM

Ex-employee sentenced for embezzling $350K from Lake Forest Park Water District

The former office manager of the Lake Forest Park Water District was sentenced today to 27 months in prison for embezzling more that $350,000 and using it to purchase personal items and pay college tuition for her children, according to the U.S. Attorney’s Office in Seattle.

In addition to the prison time, Jackee Bormann-Zweekhorst, 41, was ordered to pay $404,000 in restitution, which includes more than $56,000 spent investigating the theft.

Bormann-Zweekhorst pleaded guilty in September to wire fraud after she admitted she embezzled the money from the utility, which serves about 900 customers in North King County and has an annual budget of about $600,000.

According to the federal indictment, 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.

“Her scheme took plenty of time and effort, and she even used her children to further her fraud.  She traded on the trust of her co-workers and must be held accountable,” said U.S. Attorney Jenny Durkan.

Comments | More in Government, The Blotter | Topics: Lake Forest Park, U.S. Attorney's Office, wire fraud

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