Engineer surrenders in embezzlement case

RENO -- A former Washoe County water engineer surrendered to sheriff's deputies in Reno on Thursday to face charges that he embezzled millions of dollars from the county water division and gambled away more than $1 million of it at a local casino.

Paul Orphan, 54, fled the area on May 28 after police asked to interview him about the embezzlement scheme in which he allegedly approved county purchases for well capacity rights that he did not own.

A federal fugitive warrant was issued for his arrest last week. He's accused of stealing more than $2 million but authorities say the overall total could exceed $6.4 million. He was being held in the Washoe County Jail where his bail was set at $2 million.

Sheriff Mike Haley said Orphan had fled to Chicago. He said he took a bus back to Reno and hailed a taxi Thursday morning to the jail.

Orphan had worked for the county's Department of Water Resources since 1988 and was most recently the utility division's engineering manager. He was placed on administrative leave on May 27 after a supervisor raised concerns about improper use of funds.

"We're relieved that Mr. Orphan has chosen to surrender to authorities," Washoe County Manager Katy Singlaub said Thursday. She said they intend to hire an independent forensic accountant to help determine how much money is missing.

Washoe County District Attorney Richard Gammick said earlier that an investigation showed Orphan cashed 41 checks related to purchases he made on behalf of the county from his two bogus businesses. He gambled more than $1 million at John Ascuaga's Nugget in Sparks, authorities said.

Deputy District Attorney Dan Greco said he has been charged with five counts of grand theft.

"Mr. Orphan is going to either plead to those five counts and agree to pay full restitution for all transactions discovered to this date or I am going to amend the complaint, file 41 counts, and do everything in my power to keep him in prison for a very long time," Greco said.

County spokeswoman Kathy Carter said the stolen money was from a water users' fund at the Department of Water Resources and was not from the taxpayer-funded general budget.