Kingman municipal worker investigated for using city funds to pay gambling debt

KINGMAN, Ariz. — Authorities allege the second-ranking officer in the city of Kingman Finance Department used city funds to pay off a massive gambling debt. The information comes from court records regarding the investigation of Budget Analyst Diane Richards.

The Kingman Police Department announced Monday that the investigation was initiated by the Arizona Attorney General's Office and Department of Homeland Security. A probable cause affidavit unsealed Thursday alleged that Richards used her credit cards to obtain cash to gamble in Laughlin and that she used city funds to pay off the charges.

"Credit card records indicate that on a monthly basis, Diane Maxine Richards withdrew thousands of dollars from her credit cards, via cash advances," the affidavit said. "Richards transferred over $300,000 from the city's bank account to pay off her Discover, Barclay's and 1st national Bank of Omaha credit cards during the period of January 2014 to October 2015."

The affidavit said that Richards transferred money from the Employee Benefit Trust account to pay off the credit cards. It said Richards is accused of fraud, money laundering, computer tampering and theft dating back to 2010.

City Manager John Dougherty said Richards was fired Wednesday. She had worked for the city for 20 years.

Dougherty told Kingman City Council members during their Tuesday meeting that he and Finance Director Tina Moline were working on corrective measures to protect the city treasury.