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Spokane, Washington  Est. May 19, 1883

Bonner County Treasurer Under Investigation Commissioners Suspect Karen Weldon Of Skimming Thousands Of Dollars

Money missing from Bonner County’s coffers has prompted an embezzlement investigation aimed at Treasurer Karen Weldon.

County commissioners confirmed Friday that Weldon is suspected of skimming several thousand dollars of taxpayer money for herself.

“An investigation is not incrimination, but there is enough evidence there that it appears damaging,” Commissioner Steve Klatt said.

Commissioners would not disclose the exact amount of money involved, saying only it was “into the thousands.”

However, others familiar with the case said somewhere between $12,000 and $18,000 is missing.

An agent from the state’s Criminal Investigation Bureau was called in Friday to head the investigation.

Weldon is now on a 30-day paid medical leave of absence. Klatt said she also turned in her keys to the courthouse and will not be allowed access to the office or files until the investigation is complete.

“We are dealing with public money and we are trying to handle this by the book and act responsibly,” Klatt said. “We are concerned about Karen, but our ultimate concern is for the public’s money.”

Commissioners said it’s unclear right now how long the money has been missing, or if it was taken over a long period of time. The problem first surfaced about a month ago.

Weldon, who earns $31,500 annually, is well-respected at the courthouse. She’s been the elected treasurer for nearly six years.

Weldon was unavailable for comment Friday. Her husband, Glenn, said she was in the hospital undergoing medical treatment and has been ill for the past month.

Several county officials said Weldon has “acted out of character” recently and that she is devastated by the investigation. She endured a similar incident four years ago involving her husband.

In 1992, Glenn Weldon was charged with embezzling funds from Schweitzer Mountain Resort where he was a security guard.

Glenn Weldon was supposed to make a bank deposit for the resort. Instead, he fled with about $36,000 worth of receipts.

Weldon flew to Northern California and hid out for several days. He eventually turned himself in. A judge fined Weldon $3,343, ordered him to repay the stolen money and sentenced him to 1,000 hours of community service.

Glenn Weldon now works for Bonner County as coordinator for the solid waste department’s recycling program.

Klatt said Glenn Weldon is not part of the current investigation and that he has been an excellent county employee.

Commissioners said they first became aware of problems in the treasurer’s office last month, noticing “erratic practices and behavior” by Karen Weldon. Questions arose about her credit card expenses, and Weldon was confronted about other unexplained or unacceptable expenses, Klatt said.

The commissioners then ordered an internal audit and called in the Bonner County prosecutor to review the matter.

Later, the Criminal Investigation Bureau was asked to take over the case and the state attorney general’s office was contacted, Klatt said.

The county’s auditing firm also did an extensive review of the county books on a weekend when Weldon was gone on a two-week vacation.

The auditor’s report is not yet complete. Klatt said that information will be turned over to the attorney general, who will take legal action if necessary.

“The investigation is still incomplete and there won’t be any official action taken until it is,” Klatt said.

The investigation into Weldon’s office was a surprise to many at the courthouse. Commissioners had kept the review under wraps as a personnel matter, but informed other county workers about the investigation Friday before it was made public.

“We were not trying to hide anything or sweep something involving a county official under the rug,” Klatt said. “We chose not to release information and not jeopardize the investigation until it was complete.”

, DataTimes