SPOKANE, Wash. — On Monday, Oct. 10, 2022, Spokane City Council members said they learned a former Guardians Foundation employee was allegedly mishandling money. The claims prompted two council members to call for a criminal investigation into the suspected fraud.
The following day, the Spokane Police Department (SPD) confirmed the open investigation into the foundation, assigning a detective to look into the council members' allegations of embezzlement and fraud.
Here's what we know so far about the Guardians Foundation fraud investigation:
Timeline
Spring 2022: The Guardians' internal audit team finds "anomalies" in its transaction reports.
Upon investigating the anomalies, evidence of potential fraud pointed to one employee.
Thursday, Aug. 11, 2022: Guardians CEO Mike Shaw receives a four-page written confession from the suspected employee
In that same month, city council approved a $6.5 million dollar contract to the Guardians Foundation to open the east Trent shelter. The shelter began operating Sept. 6.
Thursday, Sept. 29, 2022: Guardians CEO Mike Shaw calls Crime Check to report a theft
Four months since claiming he had what he called "solid evidence" of potential fraud, Shaw calls Crime Check to report a theft
CRIME CHECK DISPATCHER: "Crime Check, what are you reporting?"
SHAW: "A theft."
DISPATCHER: "From a home? A business? A vehicle?"
SHAW: "A business."
Monday, Oct. 10, 2022: Council Members call for immediate criminal investigation
The Spokane city administration informs several city council members of a possible financial fraud within the city-funded homeless service provider network, later determined to be the Guardians Foundation.
Council members Lori Kinnear and Karen Stratton called for an immediate criminal investigation due to the nature of the potential fraud.
Tuesday, Oct. 11, 2022: Spokane police confirm their involvement in the investigation
SPD assigns a detective to look into the allegations of theft and embezzlement within the organization. City Council member Michael Cathcart said a forensic audit is currently underway and is expected to be completed by Oct. 31.
Thursday, Oct. 13, 2022: Guardians Foundation reveals ex-employee confessed to alleged fraud two weeks before Trent shelter approval
Guardians Foundation CEO Mike Shaw explained to KREM 2 that his top priority at the time was getting the Trent shelter up and running. Shaw also said the suspected employee's final day was Sept. 23, nearly a full month after they wrote out their confession to the alleged crimes.
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