Feds: Fire official's lavish life cost department $500,000
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FEDERAL WAY, Wash. -- It was just expensive phone calls and a mystery high-definition television that raised the initial suspicions, but federal agents say their investigation found that an assistant King County fire chief bilked his department out more than $500,000.
In a federal complaint filed Tuesday, former South King County Fire and Rescue Assistant Chief Grant G. Gaspard is accused of multiple counts of mail and wire fraud related to thefts spread out over a period of several years.
Gaspard was arrested Thursday and Magistrate Judge Brian Tsuchida ordered him held without bail.
Gaspard was so efficient with the fraud, the complaint said, that even state auditors missed the thefts in the their regular inspections and, as recently as July 9, 2008, noted that the fire district's "internal controls were adequate to safeguard public assets."
When confronted last month by the department chief about the questionable phone bills and TV purchase, Gaspard was placed on paid leave and a private law firm was hired to check the stations finances.
The law firm brought in the FBI, whose agents believe Gaspard used phony invoices, fake work orders, and improper department credit card purchases to obtain cash and personal items.
Gaspard, 51, was the department's chief financial officer, and oversaw business operations and the department computer system.
Writing in the federal complaint, FBI Special Agent Glenn Conca said Gaspard obtained about $330,000 from the department by approving purchase orders for nonexistent communications equipment from a company called Atwrx.
The payments were mailed to a private mailbox rented by Gaspard at a UPS store in Tumwater, and most of the checks were deposited into a bank account controlled by Gaspard.
In addition to the fake orders, investigators say Gaspard purchased hundreds of thousands of dollars worth of personal property with his department credit card and submitted falsified expense reports.
When he was confronted by the chief in mid-July, Gaspard allegedly destroyed large volumes of e-mail that contained documentation he submitted to justify the fraudulent purchases. Gaspard resigned from the department July 31.
Among the items Gaspard allegedly purchased with district funds:
- Sony Blu-Ray player
- 60-inch Sony high-definition television
- Rifle scope
- Nikon D2X digital camera
- Nikon D3 digital camera
- Nikon D300 digital camera
- Thousands of dollars worth of camera lenses, memory cards and accessories
- High-end Apple desktop computer
- Two Apple MacBook laptop computers
- Apple MacMini computer
- Computer scanner
- Diesel generator
- Gun safe
- Sony HD camcorder
- Mackie speakers
- Computer hard drives
- Computer software
- Towing equipment and other truck parts
- Two TiVo video recorders
South King County Fire and Rescue Chief Allen D. Church said the district is cooperating fully with the United States Attorney's Office and the FBI.
The district has 160 employees and serves Federal Way, Des Moines and areas of unincorporated King County.
If convicted, Gaspard could face up to 20 years in prison for the counts of mail and wire fraud.
In a federal complaint filed Tuesday, former South King County Fire and Rescue Assistant Chief Grant G. Gaspard is accused of multiple counts of mail and wire fraud related to thefts spread out over a period of several years.
Gaspard was arrested Thursday and Magistrate Judge Brian Tsuchida ordered him held without bail.
Gaspard was so efficient with the fraud, the complaint said, that even state auditors missed the thefts in the their regular inspections and, as recently as July 9, 2008, noted that the fire district's "internal controls were adequate to safeguard public assets."
When confronted last month by the department chief about the questionable phone bills and TV purchase, Gaspard was placed on paid leave and a private law firm was hired to check the stations finances.
The law firm brought in the FBI, whose agents believe Gaspard used phony invoices, fake work orders, and improper department credit card purchases to obtain cash and personal items.
Gaspard, 51, was the department's chief financial officer, and oversaw business operations and the department computer system.
Writing in the federal complaint, FBI Special Agent Glenn Conca said Gaspard obtained about $330,000 from the department by approving purchase orders for nonexistent communications equipment from a company called Atwrx.
The payments were mailed to a private mailbox rented by Gaspard at a UPS store in Tumwater, and most of the checks were deposited into a bank account controlled by Gaspard.
In addition to the fake orders, investigators say Gaspard purchased hundreds of thousands of dollars worth of personal property with his department credit card and submitted falsified expense reports.
When he was confronted by the chief in mid-July, Gaspard allegedly destroyed large volumes of e-mail that contained documentation he submitted to justify the fraudulent purchases. Gaspard resigned from the department July 31.
Among the items Gaspard allegedly purchased with district funds:
- Sony Blu-Ray player
- 60-inch Sony high-definition television
- Rifle scope
- Nikon D2X digital camera
- Nikon D3 digital camera
- Nikon D300 digital camera
- Thousands of dollars worth of camera lenses, memory cards and accessories
- High-end Apple desktop computer
- Two Apple MacBook laptop computers
- Apple MacMini computer
- Computer scanner
- Diesel generator
- Gun safe
- Sony HD camcorder
- Mackie speakers
- Computer hard drives
- Computer software
- Towing equipment and other truck parts
- Two TiVo video recorders
South King County Fire and Rescue Chief Allen D. Church said the district is cooperating fully with the United States Attorney's Office and the FBI.
The district has 160 employees and serves Federal Way, Des Moines and areas of unincorporated King County.
If convicted, Gaspard could face up to 20 years in prison for the counts of mail and wire fraud.
