Fraud trial against former Drainage District 5 commissioner, wife, delayed to December

Federal prosecutors allege the couple funneled taxpayer money to themselves through a front company.

The federal trial against Enumclaw locals Allan and Joann Thomas over allegations of fraud at a local drainage taxing district has been delayed to December.

Lawyers representing the Thomases said in a June court filing that they wouldn’t be ready by the previous trial date of July 19 due to the large volume of discovery in the case, the COVID-19 pandemic and health issues experienced by Allan Thomas.

“The government has provided (the Thomases) voluminous discovery reflecting the results of its financial investigation, interviews of witnesses, and documents seized through the search of the Defendants’ residence,” the attorneys wrote. “Defense counsel require additional time in order to review this discovery, to conduct additional investigation, and to prepare a defense to the charges. … Defense counsel’s ability to perform these tasks also has been impaired by health issues experienced by (Thomas), which have required periodic hospitalization, and which still require treatment and an operation.”

The motion to move the trial to December wasn’t opposed by federal prosecutors.

Allan and JoAnn Thomas were charged in September 2019 with mail fraud, having allegedly stolen hundreds of thousands of taxpayer dollars. Their current charges include conspiracy, aggravated identity theft, money laundering, wire fraud and mail fraud.

For more than 35 years, Allan Thomas was a commissioner for Drainage District 5, a special purpose tax district charged with maintaining approximately 18 miles of drainage ditches in east Enumclaw.

Prosecutors representing the United States allege the Thomases set up a phony company to steal roughly $468,000 from around 600 Enumclaw residents that reside within Drainage District 5’s boundaries. The scheme allegedly began in 2012, when the Thomases set up a business bank account for a company called AC Services, which would “send” a bill to Drainage District 5, which would then forward it to King County.

While AC Services was supposedly doing work for the Drainage District, “In fact, very little of the specified work was performed,” the U.S. alleges in charging documents.

The county would then issue the requested funds back to Drainage District 5, and the money would be deposited into AC Services’ bank account, from where the U.S. alleges the Thomases used it for their own personal gain.

The Thomases have denied stealing from taxpayers, and told the investigators that the money withdrawn from AC Services’ bank account were reimbursements.

Mail fraud is punishable by up to 20 years in prison and a $250,000 fine.

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