Police to investigate embezzlement

Clerk admitted to stealing $17,500

A criminal investigation has been launched into an embezzling case involving Kalispell high school activity money.

Cindy Upwall resigned recently as Glacier High School activities bookkeeper after admitting to stealing $17,500 from activity funds.

"If the investigation supports charges, charges will be filed," Flathead County Attorney Ed Corrigan said Thursday.

Prior to Thursday, the matter had been handled internally by the school district. Upwall confessed to the theft and agreed to pay full restitution by July 1, according to district officials.

"It is my opinion that it needs to be referred to law enforcement, and that's what has been done," Corrigan said.

The Kalispell Police Department will conduct the investigation.

For his office to file charges, Corrigan said, the investigation needs to establish whether Upwall did, in fact, embezzle money and if so, how much.

The $17,500 Upwall allegedly stole was by her own admission. A major focus of the investigation will be to independently verify that figure.

"The school district will be 100 percent cooperative," Superintendent Darlene Schottle said on Thursday. "We will provide them with any information we have."

Corrigan said he understands why the school district made the agreement with Upwall. The district simply pursued the most pragmatic way to get its money back, he said.

"This was not an effort on [Schottle's] part to somehow bury the theft from the school district or allow the woman to escape the consequences of her actions," he said.

Upwall, who began working for the school district in August 1999, took the money over a period of several years, Schottle said last week.

Upwall was in charge of the high school activity funds at Flathead High School before Glacier opened.

A few weeks ago, a new employee working with Upwall noticed some undeposited checks.

The district performed an internal central audit and also hired an independent auditor. When the audits were completed, district officials believed about $15,000 was missing. When district officials confronted Upwall, she confessed to taking $17,500.

If the police investigation yields charges and she is convicted, Upwall could face up to 10 years in prison and a $50,000 fine.

"How this case is going to turn out ultimately depends in a large part on her willingness and ability to make the school district whole," Corrigan said.

The Daily Inter Lake's initial story on the embezzlement case, which was published Nov. 30, prompted a vigorous online debate about whether criminal charges should be pursued.

As of Thursday afternoon the story had attracted 85 reader comments. To read them, go to www.dailyinterlake.com/articles/2007/11/30/news/news02.txt.

Reporter Nicholas Ledden may be reached at 758-4441 or by e-mail at nledden@dailyinterlake.com. Reporter Kristi Albertson may be reached at 758-4438 or by e-mail at kalbertson@dailyinterlake.com