News and Press Releases

Former Employee Embezzled More than $1.3 Million

December 30, 2008

The former Human Resources Administrator for the City of Arlington, Washington, pleaded guilty today in U.S. District Court in Seattle to Mail Fraud and Filing a False Tax return. TERRY L. DAVIS, 57, faces up to twenty years in prison and a $250,000 fine when sentenced by U.S. District Judge Ricardo S. Martinez on March 27, 2009. As part of her plea agreement DAVIS agrees to forfeit two properties, two cars, and a Whistler time share condo to the government. DAVIS agrees to make full restitution to the City of Arlington of more than $1.3 million.

According to the facts admitted in DAVIS’ plea agreement, she started working for the City of Arlington in 1972. Between 2000 and 2008, DAVIS was the Assistant Financial Director for the city and the Arlington Human Resources Administrator. As part of her job, DAVIS tracked and paid invoices for benefits provided to Arlington employees. Between 2000 and 2008, DAVIS made out 103 unauthorized checks payable to herself and deposited them in her bank account. DAVIS was not entitled to this money, and had forged the authorizing signatures on the checks. After the checks cleared and were returned to the City of Arlington, DAVIS altered the checks and the records relating to the checks to hide her embezzlement. DAVIS embezzled more than $1,311,989 with this scheme which she used for her mortgage payments, car payments, time share condo payments, credit card bills, trips and hotel stays, clothing, and jewelry. Additionally, DAVIS failed to declare the embezzled income on her income tax returns, resulting in a tax loss to the government of more than $281,000.

The case was investigated by the Snohomish County Sheriff’s Department and the Internal Revenue Service Criminal Investigations (IRS-CI). The case is being prosecuted by Assistant United States Attorney Darwin Roberts.

For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at (206) 553-4110.

Return to Top

USAO Homepage
USAO Briefing Room
Justice 101
Community Outreach

Engaging in outreach in order to prevent crime, respond to community needs, and promote good citizenship.

Victim Witness Assistance

Making sure that victims of federal crimes are treated with compassion, fairness and respect

Project Safe Neighborhoods

Our nation-wide commitment to reducing gun crime in America

Oficinas de los Fiscales de Estados Unidos En Español
Stay Connected with Twitter