KINGMAN — The employee who embezzled more than $1.1-million from the City of Kingman beginning nearly two decades ago was released from the Arizona Department of Corrections more than four months ago.
Diane Richards, 68, served almost 7.5-years in prison before she was released from ASPC-Perryville on March 24. Special Agents with the Arizona Attorney General’s Office and ICE Homeland Security launched an investigation in September, 2015 after financial institutions reported unusual activity involving Richard’s bank accounts.
Richards worked in the Kingman City Finance Department and investigation revealed that she misused a city credit card to pay for personal expenses from July, 2007 through January, 2015. The Attorney General’s Office said Richards used the card to cover cell phone, utility and car insurance bills and to pay off cash advances from various casinos.
Authorities said that Richards also reportedly misappropriated more than $990,000 from an Employee Benefits Trust account.
“Richards stole more than a million dollars from the City of Kingman to fund her gambling addiction,” Attorney General Mark Brnovich said after her October, 2017 sentencing hearing. “Government employees who steal from taxpayers must be held accountable.”
Richards was convicted of four counts of theft in a plea agreement entered in August, 2017. The deal made her responsible for more than $1.1-million in restitution.
Wages earned while incarcerated were used for mostly monthly payments from January, 2018 until October, 2024. Court records reveal a ledger of more than 75 payments ranging from $7.44 up to $767.46.
Finance Director Tina Moline said the city has received a total of a little more than $162,000 in restitution from Richards. She said Kingman also received a $500,000 payment from its municipal insurance risk pool and almost $59,000 more from a settlement of litigation with Heinfeld Meech, its former auditor, leaving a balance of about $379,000.
Terms of the plea agreement require Richards to serve seven year’s post release probation. The Department of Corrections said that probation is being administered by Mohave County.
