Gambling Away Our Future
What Happened?
Over a one year period, Pauletta Huffman, NHS class of 1973, embezzled $62,000 from the NHS Alumni Association, depleti
ng its assets. The association, through decades of fundraising, donations and grants, had previously offered two $4000 scholarships to graduating NHS seniors every June. However, due to the embezzlement, they can no longer reward those scholarships.
“What Pauletta has done to her alma mater in the name of greed (or addiction) effectively cancelled out our ability to offer scholarships to NHS graduates for the next eight years,” said NHS Alumni Association President Dick Bevens.
For over five years prior to the theft, which took place between November 2006 and June 2007, Huffman, 56, had served on the association’s board as treasurer. The association began to question Huffman’s ethics when bank statements became suspicious and something just “didn’t seem right,” according to Bevens.
“We did operate a lot on trust back then, because [Huffman] had been with us for several years,” said Bevens, “Even though we had a two signature policy on all checks, we realized through looking at bank statements that on certain occasions the ‘pay-to’ part of the check had been left blank. And Huffman had been making checks out to herself.”
Since the embezzlement, the Alumni Association has raised enough funds to honor the students already promised scholarships. Although many NHS alumni have responded positively with donations, many have expressed a loss of faith in the association’s business practices.
“It is indeed a sad and sorry day for our volunteer board of directors,” said Bevens, “who placed so much trust and faith in Pauletta.”
The Court Case
Huffman went before a grand jury Dec. 4, 2008 and plead guilty to one count aggravated theft under Circuit Court Judge Sheryl Bachart. Her sentence included 24 months probation, 60 days in the Lincoln County Jail and a total of $64,073.49 restitution to be paid to the Newport High School Alumni Association in full (see sidebar).
“I always avoided tight spaces, but I had no idea how claustrophobic I was until I was confined for 60 days,” stated Huffman in an online blog entitled “Gambling Addiction – Battling my Dragon.” <www.battleadragon.blogspot.com>
According to her testimony, Huffman frequented casinos up to twice a week during the year. “She indicates to me that basically the period of time in question is a blur to her. Apparently the Newport scholarship fund is now in the proud possession of the Tribe of Siletz because it all went down the toilet in the Chinook Winds Casino,” stated Huffman’s court-appointed attorney, Guy Greco. Greco went on to explain that due to an untreated case of stage-three melanoma, Huffman suffered severe memory loss and remembers committing only portions of the crime.
Bachart expressed extreme skepticism towards Huffman’s claim of memory loss. “What you did took planning…I don’t know if it’s a way to resolve in your own mind the gravity of what you did or if it’s a way for you to live with yourself as a result of this… but $64,000? I don’t buy it for a minute that you don’t remember that. It’s insulting to these people here that you would make that representation in court…you didn’t steal from the Alumni Association. You stole from the kids who would benefit from that money.”
Bachart continued on to give Huffman an opportunity to address the court and the association with an apology, but she declined, stating, “I think everyone’s suffered enough.”
At the end of the hearing, Bachart expressed regret that she could not issue a stronger sentencing and sent Huffman immediately to jail.
The HL Reaches Out
On March 8, The Harbor Light mailed Huffman a letter requesting an interview, inviting her to tell her side of the story. She declined the offer. A few days later, The Harbor Light tried again:
“Pauletta, after further research I urge you to reconsider. This story could be groundbreaking for you. As far as I can tell from your file, your restitution and court orders do not forbid you from speaking with me. The Harbor Light and I have no affiliation with the Alumni Association whatsoever and I hope I’m not being too forward by requesting a change of heart. The Harbor Light plans to proceed with the story regardless of your contribution but I urge you to take this opportunity. We are not out to persecute you. We want to find out what happened.”
Huffman responded: “I would refer you to the last line of the Probation Conditions in the judgment, ‘follow any direction of the parole officer.’ This section refers to communications associated with this case; therefore, all emails, phone requests, or letters are copied for files and cleared prior to responding. Furthermore, the tone of your email indicates that you have determined the focus of your story and do not need my input. Please discontinue any future contact by letter, email, or phone. Respectfully, Pauletta Huffman.”
The Aftermath
“We have put procedures in place so that this will never happen again,” said Bevens, “Number one, all of our board members are bonded. Number two, a check is not given unless the payee is physically written on the check. And number three, the treasurer does not make out checks.”
As of March 2010, Huffman had repaid $1529 of the restitution owed. She claims to have made the NHS Alumni Association the beneficiary for her life insurance policy. However, at her current rate of payment, the restitution will not be paid in full for approximately 41 years.
Her Punishment
• 24 months probation
• violate no law
• keep court informed of address
• obey all dept. of corrections rules
• pay monthly supervision fee of $35
• don’t associate with people engaged in criminal activity
• no contact with the association or anyone who is a member of that association
• no association sponsored events
• possess no firearm
• submit dna sample
• undergo treatment for gambling addiction
• not to frequent any establishment with gambling (casinos, bars, restaurants)
• not to participate in any type of gambling activity (includes lottery and online sites)
• will not handle any financial accounts for businesses or non-profits
• ordered to pay all restitution $64,037.49 to alumni association and friends
• until all paid in full, will not leave Lincoln County without written permission
• follow all directions from the probation officer
• minimum payments of $150 a month while on probation
• 60 days in jail to report immediately
