SPOKANE, Wash. —
According to Guardians Foundation CEO Mike Shaw, in early spring of this year, the Guardians internal audit team found "anomalies" in its transaction reports.
Upon investigating the anomalies, evidence of potential fraud pointed to one employee.
Shaw said by May, internal investigators felt they had enough information to begin alerting authorities and attorneys.
But, he didn't take immediate action.
“I knew that what I had was there for my time and choosing,” Shaw said.
Months go by.
Then, Aug. 11, Shaw got 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.
“We also had to gear up a huge employment staffing increase, which was successful, get the building successfully started up and monitor the operations for the first week or so to make sure that we're in a rhythm that that makes sense for everybody,” Shaw said.
To explain why Shaw waited to notify officials, he said his top priority was getting the shelter up and running. Then, he would deal with his employee later.
“I have her. I got her number. (The) most important thing is getting these people off the streets," Shaw explained. "So, I chose that route.”
Shaw said the suspected employee's final day was Sept. 23, nearly a full month after they wrote out their confession to the alleged crimes.
"That's when everyone in the whole building turned and looked at Mike Shaw and said, 'when you call it crime check?', because we've accomplished every goal we can possibly do," Shaw remembered. "Everyone's looking at me. Looking at me, 'okay, it's time.'"
In Crime Check calls KREM 2 obtained in a records request, Shaw waited six days since the suspected employee's last day to sound the alarm.
Four months since claiming he had what he called "solid evidence of potential fraud," Sept. 29, Shaw called 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."
Nearly two weeks later, in October, city council members and the Mayor's office informed the public about the alleged fraud.
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