Investigation of Clallam treasury theft goes on, but action in courtroom stalls

PORT ANGELES — A status hearing four months before the trial of former Clallam County employee Catherine Betts on an aggravated first-degree theft charge was unproductive Thursday.

Meanwhile, Port Angeles police continue to attempt to track down what happened to the $617,467 in public funds that Betts is alleged to have stolen from the Clallam County Treasurer’s Office.

On June 10, Clallam County Superior Court Judge S. Brooke Taylor moved Betts’ felony trial on a charge of aggravated first-degree-theft from July 12 to Jan. 10, 2011 — almost two years after the theft was discovered — so Clallam Public Defenders could hire forensic experts to examine more than 60,000 pages of financial documents related to the theft.

Public defender Loren Oakley told Taylor on Thursday that no experts have been hired.

“We are still in the process of evaluating the case and seeing how we are going to pursue that,” Oakley said.

“Wouldn’t it help to have an expert on board to do that?” Taylor responded.

Taylor set another status hearing for 1 p.m. Nov. 18 and said he expects experts to have been hired by then.

Betts, who has pleaded not guilty, participated in the hearing by speaker phone from Shelton, where she returned after being released on her own recognizance. She is in a wheelchair and finds it difficult to travel, Oakley said.

Oakley told Taylor he keeps receiving new information from the prosecution on CDs, which can contain voluminous amounts of data.

As of Thursday, police don’t know what happened to the funds alleged to have been stolen, Police Chief Terry Gallagher said.

“There is nothing significant that has occurred in this case in at least the last month,” he said.

“We follow leads in an effort to determine where the money may have gone, but those efforts are not always successful.

“Our path at this point would primarily be to follow the direction of the [Attorney General’s] Office,” Gallagher explained.

“If they were to ask us for specific work on a specific aspect of the case, we would do that.”

The county will at least recover the amount stolen through its insurance policy, county Administrator Jim Jones predicted Thursday.

A Great American Insurance Group of Cincinnati representative told Jones in July that the county is “completely covered” for the theft.

“They are attempting to do everything they can do to find out how to recover as much of the money they possibly can,” Jones said.

“If the court can’t do it, then they will try to do it civilly.”

Great American Insurance Group officials could not be reached for comment late Thursday.

After a nine-month investigation, state Auditor’s Office investigator Jim Brittain concluded in February that Betts stole $617,467 in a cash-for-checks scheme involving real estate excise taxes between Feb. 1, 2004, and May 19, 2009 — and that the exact amount stolen could not be determined.

“The county did not monitor this activity,” Brittain said.

Taylor has allowed Public Defenders to classify the Betts case as requiring an “extremely complicated defense,” meaning Public Defenders can spend funds on the Betts case outside the $840,000 contract it has with the county to represent indigent defendants, Jones said.

Harry Gasnick of Clallam Public Defenders said Thursday “it’s premature” to speculate if Public Defenders will receive money outside its contract for defending Betts.

________

Senior Staff Writer Paul Gottlieb can be reached at 360-417-3536 or at paul.gottlieb@peninsuladailynews.com.

More in News

Clallam County and Astound are partnering with assistance from Clallam County PUD on a $22 million project that will extend Astound’s existing fiber network near Laird’s Corner to almost 100 miles of new above ground and underground infrastructure that will reach more than 1,500 homes in the Highway 112 corridor.
High-speed internet coming to Highway 112 corridor

Clallam County, PUD and Astound involved in $22M project

State leaders discuss budget

Importance of gas tax explained

Conservation measures requested on water system west of Sekiu

Clallam County Public Utility District No. 1 has issued a… Continue reading

Supreme Court justice addresses law day event

Clallam-Jefferson Pro Bono Lawyers hosted an observance of Law… Continue reading

Charter Review Commission to consider seven issues

The Clallam County Charter Review Commission has launched a… Continue reading

Chimacum Elementary School sixth-grade students jump on a rotating maypole as they use the new playground equipment on Monday during recess. The playground was redesigned with safer equipment and was in use for the first time since inspections were completed last Thursday. (Steve Mullensky/for Peninsula Daily News)
New equipment

Chimacum Elementary School sixth-grade students jump on a rotating maypole as they… Continue reading

Microsoft purchases Peninsula credits

Carbon removal will come from area forests

Port Angeles School District to reduce budget by $1.9M

Additional cuts could come if government slashes Title 1 funding

Jefferson County discussion centers on fireworks

Potential future bans, pathway to public displays discussed

Natalie Maitland.
Port Townsend Main Street hires next executive director

Natalie Maitland will start new role with organization May 21

Olympic Kiwanis Club member Tobin Standley, right, hands a piece of stereo equipment to Gerald Casasola for disposal during Saturday’s electronics recycling collection day in the parking lot at Port Angeles Civic Field. Items collected during the roundup were to be given to Friendly Earth International Recycling for repairs and eventual resale, or else disassembled for parts. Club members were accepting monetary donations during the event as a benefit for Kiwanis community programs. (Keith Thorpe/Peninsula Daily News)
Electronics recycling

Olympic Kiwanis Club member Tobin Standley, right, hands a piece of stereo… Continue reading

Port Angeles Garden Club member Bobbie Daniels, left, and her daughter, Rose Halverson, both of Port Angeles, look at a table of plants for sale at the club’s annual plant sale and raffle on Saturday at the Port Angeles Senior Center. The event featured hundreds of plants for sale as a fundraiser for club events and operations. (Keith Thorpe/Peninsula Daily News)
Plant sale

Port Angeles Garden Club member Bobbie Daniels, left, and her daughter, Rose… Continue reading