Suspect released by judge

A former Kalispell school district employee accused of embezzling more than $17,500 in activity funds from Flathead and Glacier high schools was released on her own recognizance after an initial appearance Friday in Kalispell.

Cynthia Lynn Upwall, 44, voluntarily returned from California this week to face felony charges of theft by embezzlement.

Her arraignment in District Court is scheduled for March 13.

Although Upwall has admitted stealing $17,500 - mostly in gate receipts - prosecutors are convinced the actual amount taken is much greater, Flathead County Attorney Ed Corrigan said.

An investigation launched by the Kalispell Police Department in December found substantially more than $17,500 in unaccounted-for cash deposits to Upwall's bank accounts.

"Their findings indicated that there were further unaccounted-for deposits in this individual's accounts," according to a statement released by the school district.

But authorities won't know the exact amount taken from School District 5 until after prosecutors sit down with Upwall and her attorney in the coming weeks and go over financial records, Corrigan said.

Until those meetings, Corrigan declined to speculate on what the final figure taken from the school district might be.

But on any given day, $3,000 to $4,000 goes through the activities office. If an athletic event or other activity is taking place, those figures might easily range from $10,000 to $12,000, according to school district officials.

Hired by the school district in 1999, Upwall was the Flathead High School activities bookkeeper for six years and held the same position at Glacier High School when it opened last fall.

Suspicions of embezzlement were aroused after a new employee working with Upwall at Glacier High School noticed some undeposited checks, written to Flathead High School and signed by Upwall, from 2003 and 2004.

When school district officials confronted Upwall, she confessed to taking $17,500.

But an internal central audit and second independent audit conducted by the school district could only show that about $15,000 was missing from student activities funds.

Upwall resigned when she was told she would be placed on paid leave during the audit.

According to court documents, the thefts occurred between February 2003 and November 2007. Upwall told investigators she would take money from deposits to the activity fund only when she needed it, but was never able to pay it back.

She also deposited some of the money into her husband's account and then wrote checks from that account to herself in an effort to avoid getting caught, according to court papers.

Upwall agreed to make full restitution by July 1. To date, she has repaid more than $14,000.

If convicted, Upwall could face as long as 10 years in prison and a $50,000 fine.

Reporter Nicholas Ledden can be reached at 758-4441 or by e-mail at nledden@dailyinterlake.com