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Press Release

Former Washington Town Clerk and Town Council Member Sentenced for Stealing More Than $277,000 From Town of Cusick

For Immediate Release
U.S. Attorney's Office, Eastern District of Washington

Spokane, Washington – On December 19, 2024, United States District Judge Thomas O. Rice sentenced Luke Michael Servas, age 38, of Cusick, Washington, to 51 months in prison for embezzling hundreds of thousands of dollars from the Town of Cusick while serving as a Town Councilman and Town Clerk. Judge Rice also imposed 5 years of supervised release and restitution of $282,208.18.

According to court documents and information presented at the sentencing hearing, between October 2022 and March 2023, Servas embezzled more than $277,000, while employed as the Town Clerk and as a member of the Town Council for Cusick, Washington, , transferring it to accounts owned and controlled by Servas and his spouse.

In March 2023, other town officials expressed concern that the Town’s operating account was almost completely devoid of funds. According to information disclosed during court proceedings, Servas falsely suggested to law enforcement representatives that the elected mayor of Cusick was to blame and attempted to delete the Town’s computer systems to hide the fraud and to misappropriate additional funds from the Town.

“Mr. Servas used his elected position of trust to financially devastate a small community,” stated U.S. Attorney Vanessa Waldref.  “Our communities trust public officials to serve others, rather than to use their positions to line their own pockets. I commend the exceptional work done by the FBI and the Washington State Auditor’s Office to root out the fraud.  I also commend the hard work done by the Town of Cusick to begin to pick up the pieces and start the hard work of rebuilding the Town’s finances and regaining the public’s trust.”

“The amount of money stolen by Mr. Servas could have a massive impact on a town the size of Cusick.”  said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “What makes this theft even more unconscionable is that it was perpetrated by someone who was given a position of trust by the town and his fellow citizens. Combatting public corruption is a priority for the FBI, and I applaud the efforts of our investigators and partners who ended the scheme and are holding him accountable.”

This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency, with investigative and logistical support from the Pend Oreille County Sheriff’s Office and the Washington State Auditor’s Office.  This case was prosecuted by Assistant United States Attorney Dan Fruchter.

2:24-cr-00042-TOR

Contact

Robert Curry 

Public Affairs Specialist 

USAWAE.Media@usdoj.gov 

Updated December 30, 2024

Topic
Financial Fraud