Man pleads guilty to mail fraud

The former office manager of KOFI Radio in Kalispell pleaded guilty Wednesday in U.S. District Court to fraudulently purchasing office supplies at the station's expense in return for incentives from vendors.

Indicted for mail fraud in February, Kent Etchison, 33, faces up to 20 years in federal prison and a $250,000 fine.

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 ordered about $972,000 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.

According to prosecutors, the companies that Etchison ordered from made a regular practice of scamming businesses using inside sources.

Etchison admitted that to increase the value of incentives he received, he ordered 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 believe 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, maintained 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.

When his actions were discovered during an accounting audit, Etchison reportedly wrote a letter of apology to his bosses. He also reportedly told U.S. Secret Service investigators that the more supplies he ordered, the larger the kickbacks.

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.

Disagreement with management over whether or not to broadcast the Etchison indictment story led to the ouster of longtime KOFI radio newscaster George Ostrom in March.

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