Woman sentenced to 41 months for embezzlement from Black Canyon Irrigation District

Catherine Skidmore, 56, of Meridian, was sentenced Friday to 41 months in federal prison for a wire fraud and money laundering scheme in which she embezzled from the Black Canyon Irrigation District (BCID).

Skidmore's sentencing imposed by U.S. District Judge Amanda K. Brailsford was announced by U.S. Attorney Josh Hurwit. The court also ordered Skidmore to pay restitution in the amount of $1,792,207.59 and to serve three years of supervised release following her prison sentence.

According to court records, beginning in May 2019 and continuing to July 2022, Skidmore knowingly devised a scheme and artifice to defraud the BCID by embezzling more than $1.7 million through the use of an elaborate series of transfers between the BCID's various financial accounts. At the time she was employed as the Secretary-Treasurer of the BCID.

To implement the scheme, in May 2019, using a falsified form containing the forged signature of a member of the board of directors, Skidmore opened a second LGIP account with the Idaho State Treasurer without the knowledge or authorization of the BCID or its Board of Directors. From June 2019 through July 2022, Skidmore authorized and directed the authorization of transfers from the original LGIP account to the unauthorized second LGIP account without disclosing the nature of those transfers to the BCID or its Board of Directors.

Skidmore then caused approximately $1,792,000 to be transferred from the unauthorized LGIP account to the ICCU savings account through a series of 25 separate interstate wire transfers, all without the knowledge of the BCID.

Once the funds were transferred to the BCID's savings account, Skidmore withdrew the funds, mostly in the form of cashier's checks. Skidmore then used the funds for her personal benefit.

To conceal the embezzlement, Skidmore made false entries in the BCID internal accounting records that represented certain funds were used to pay the BCID expenses when, in fact, Skidmore used the funds for her personal use and benefit. She also created and caused to be created fictitious invoices to make it appear that the funds she had stolen were used to pay for legitimate BCID business expenses when, in reality, she used the funds for her personal use and benefit.

Skidmore used the proceeds for her personal benefit including, but not limited to, paying credit card bills for herself and others, real property taxes, home improvements, and making mortgage payments. She also used the funds to purchase real property, solar panels, and vehicles, and to fund an investment account.