Embezzlement Suit On Hold Reflection Lake Water Association Lacking Funds

Thu., Aug. 7, 1997

By Kevin Blocker kevinb@spokesman.com

Residents of the Reflection Lake water association are working with an attorney to figure out how to get back more than $35,000 they say was embezzled from them by a sheriff’s deputy and his estranged wife.

In May, the water association filed a lawsuit against Spokane County Sheriff’s Deputy Mike Zollars and Kristine Zollars.

The association has accused them of stealing money and wiping out their cash reserves.

“Everything is working fine right now. We’re doing all right. But if an emergency came up, we’d be in trouble,” said Kevin Jobes, vice president of the water association.

Thirty homeowners on the east side of Reflection Lake belong to the nonprofit association, contributing $20 a month.

The Zollars’ were removed from the governing board in February, Jobes said.

Mike Zollars started serving as president in June 1992; his wife joined the board a year later.

The sheriff’s department has not started an official investigation into the alleged wrongdoings because the water association doesn’t have the money to pay for a complete audit, Jobes said.

“Right now we’re trying to subpoena bank records and chart just where the money went,” Jobes said. He said homeowners are concerned that they may never get any of their money back.

The legal fees for the homeowners are between $4,000 and $5,000, Jobes said. The water association is being represented by Spokane attorney Michael Perizzo.

In May, Rick Bonewell, an attorney for the sheriff’s deputy, denied the charges against his client. Zollars is still on active duty with the department.

Kristine Zollars and her attorney, William T. Mableson, refused to comment.

In Spokane County Superior Court documents, however, Mableson said his client agrees “the probability does exist that some monies were used without authorization.”

The association’s electric bills are usually less than $40 a month, according to Jobes. When Zollars began paying the bills, there was more than $10,000 in the association’s bank account, Jobes said.

Water association officials said they notified authorities about the missing money in February. The problem came to light after last November’s ice storm. A pump to a holding tank was damaged during the storm.

The pump was later replaced, but residents were without running water after their electricity was restored. The association charges homeowners for use of the holding tank, which draws water from a spring near the lake.

The money pays for electricity, water testing, tank maintenance and system improvements.

, DataTimes

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are tax deductible.

Meet Our Journalists

Jesse Tinsley

Meet Jesse Tinsley. As a certified drone pilot, this veteran Spokesman-Review photographer often can be seen capturing beautiful aerial photographs of our region. Sometimes though, the job requires getting down with the dogs.
Jim Meehan

Jim Meehan is no stranger to Zag Nation. As the lead writer covering the Gonzaga men’s basketball team, he tells the stories behind the game and gets fans a bit closer to their favorite players.
Molly Quinn

There is no artist in Spokane like Molly Quinn. Her whimsical style is instantly recognizable to readers of The Spokesman-Review. She has painted gorgeous illustrations that instantly elevate the journalism accompanying it. She brings to life the stories that defy photography. She makes our pages better.
Rob Curley

Spokesman-Review editor Rob Curley loves to talk with people and learn about their lives, whether it's a best-selling author or a stranger he meets downtown on his walk to lunch. It's that inquisitive nature combined with a playful sense of storytelling that helps make our newspaper different than most.