Estimate in city of Kingman embezzlement rises to $1.1 million

An estimate of alleged theft from the city of Kingman by an employee has escalated to $1.1. million, more than three times the amount noted at the start of an investigation and review of city records on Nov. 16, according to a city statement released Wednesday.

The Arizona Attorney General's Office and National Homeland Security probe began with an allegation that Budget Analyst Diane Richards abused her position to embezzle an estimated $300,000 from the Employee Benefit Trust (EBT) account. "In addition, it appears that a City credit card was used to pay for personal expenses as well as cash advances," the city statement said.

Richards, who was fired Nov. 18, has not been formally charged or arrested in connection with the case. She reportedly has been cooperating with investigators.

City Attorney Carl Cooper said a company insuring the city will use a forensic auditing team to try to determine the full extent of the loss. Kingman has $500,000 in employee theft coverage and will attempt to recover as much of the loss as possible, he said.