SPOKANE, Wash. – A longtime bookkeeper at Greater Spokane Meals on Wheels pleaded guilty to stealing more than $88,000 from the organization that provides food and human interaction to disabled and home-bound seniors.
Michelle Ferrell, 59, took a plea agreement and pleaded guilty to wire fraud. As part of the agreement, Ferrell will forfeit her home in Spokane Valley.
Ferrell has not yet been sentenced. The wire fraud charge carries a maximum penalty of 20 years imprisonment, a $250,000 fine, up to three years of court supervision after release, and restitution.
According to court documents, between May 2013 and April 2018, Ferrell had access to the organization's bank accounts, debit cards and payroll system.
Documents said Ferrell used the bank accounts to pay for things like her mortgage, utilities and property tax payments.
The United States Attorney of Eastern Washington said Ferrell frequently disguised these transfers in Meals on Wheels’ internal accounting system to make them appear as though they were legitimate Meals on Wheels expenses.
Ferrell was also responsible for paying Greater Spokane County Meals on Wheels’ quarterly payroll taxes to the United States Internal Revenue Service. Documents said she frequently underpaid the organization's payroll taxes, or failed to file tax returns at all, then falsified Greater Spokane County Meals on Wheels' internal accounting records to reflect that it had been paid in full.
Prosecutors said when Meals on Wheels discovered this fraud, it was required to file corrected returns with the IRS, resulting in Meals on Wheels owing the IRS an additional over $120,000 in back payroll taxes, not including penalties or interest for late payment. The penalties and interest are still being assessed by the IRS.
Ferrell has since been fired.
“As an organization we are deeply saddened and disappointed that this occurred. We have taken the steps to protect the organization and to move forward,” said Greater Spokane County Meals on Wheels Board member Rick Waldt. “This person’s alleged actions are heartbreaking and disappointing.”
Waldt said the theft won’t impact the organization’s ability to provide services and meals. The organization has also updated its financial system and finance management team.
A newspaper incorrectly referenced Meals on Wheels Spokane in a report about the embezzlement. Meals on Wheels Spokane sent a press release stating it has no affiliation with Greater Spokane County Meals on Wheels.
