Trial involving missing Clallam treasury funds delayed; motion made to suppress alleged confession

PORT ANGELES — The three-week trial of a woman accused of stealing $617,467 from the Clallam County Treasurer’s Office was postponed during a court hearing Tuesday, one week before it was scheduled to start.

Catherine Betts, a former Treasurer’s Office employee, now is scheduled to be tried July 18.

She is charged with first-degree theft, money laundering and 19 counts of filing false or fraudulent tax returns with the state Department of Revenue.

Clallam County Superior Court Judge Brooke Taylor agreed to reset the trial to allow more time for the attorneys to review evidence.

The trial date could be moved again if the defense requests a change in venue.

Clallam Public Defender Director Harry Gasnik said that is being considered because of extensive publicity about the case.

He said no decision has been reached and declined to say whether he thinks Betts can get a fair trial in Clallam County.

Additionally, a hearing will be held June 14 to determine whether Betts’ alleged confession to the county treasurer should be dismissed.

Betts, 47, allegedly told then-Treasurer Judy Scott and another employee May 19, 2009, that she had stolen between $1,200 and $1,300 when record-keeping anomalies were discovered in her bookkeeping.

That launched a state Auditor’s Office investigation that concluded that $617,467 in real estate excise tax proceeds was missing.

The thefts occurred as early as 2004.

Betts is alleged to have stolen the funds by exchanging checks from property owners with cash from the office’s cash drawer.

In his motion filed May 11, Gasnik argued that any information gained through a “disciplinary investigation” cannot be used as evidence during a criminal prosecution.

He cited case law and the Clallam County Personnel Policies and Procedures manual, which he said “affirmatively provided assurances” that any information obtained during investigations of job performance will not be used in a criminal investigation.

State Assistant Attorney General Scott Marlow, who is prosecuting the case, declined to comment on the motion.

“That’s something we will have to argue out in court,” he said.

Marlow also declined to say how significant Betts’ alleged statements to Scott are to the case.

Betts did not make any statements to police, said Port Angeles Detective Jason Viada.

Viada said he didn’t think it would be appropriate for him to say whether police approached Betts for an interview since the case has not gone to trial but added:

“An attempt to interview the suspect would typically be part of a thorough investigation, and this was a very thorough investigation.”

Betts participated in Tuesday’s hearing by phone. She has been living in Shelton.

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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.

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