Kalispell resident accused of mail fraud

The former office manager of KOFI Radio in Kalispell has been indicted for fraudulently purchasing office supplies at the station's expense to obtain incentives from vendors.

Kent Etchison, 33, of Kalispell pleaded not guilty to mail fraud Thursday in U.S. District Court in Missoula.

According to court documents, Etchison - whose duties as office manager included ordering office supplies and managing the radio station's accounts payable and receivable - would purchase large quantities of office supplies in exchange for incentives offered by supply companies.

Between March 2003 and June 2006, Etchison allegedly ordered about $925,000 in office supplies, far more than the radio station could use. The orders were placed primarily to vendors that offered Etchison incentives, which over the years reportedly landed him a 19-inch TV, laptop computer, traveler's checks, gift certificates, gift cards and money.

Any scheme to unlawfully obtain money or valuables, and in which the postal system is used in the commission of the crime, can be prosecuted as mail fraud.

To increase the value of incentives he received, federal prosecutors say, Etchison would order supplies - such as toner and copy cartridges - not compatible with any of the radio station's equipment, supplies that were invoiced and paid for but never received, and supplies that were returned to various vendors without a refund for the original payment.

Prosecutors allege that to conceal the fraud, Etchison attempted to keep the costs associated with the large volume of incoming office supplies off the station's books.

He would prepare hand-written checks for office supply vendors instead of using the station's computerized accounting system, maintain a file of unused checks that he could use to pay vendors, and code checks in the station's computerized accounting system with false amounts and names, according to the indictment. Etchison also is accused of erasing records of checks written to vendors from whom he was receiving incentives.

If convicted, Etchison, who is free on special conditions, faces up to 20 years in prison, five years of supervised release, and a $250,000 fine.

The investigation was conducted by the U.S. Secret Service.

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