Former Town Clerk and Town Council Member Indicted for Stealing More Than $195,000 from Town of Cusick

Spokane, Washington – On March 19, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Luke Michael Servas, age 38, with 25 counts of Wire Fraud, 26 counts of Bank Fraud and 25 counts of Aggravated Identity Theft.

According to court documents, Servas embezzled more than $195,000 while employed as the Town Clerk for the town of Cusick, Washington between October 2022 and March 2023.  During that time period, Servas was also an elected member of the town council.   

Like many cities and towns, Cusick residents elect a town council, which selects a town clerk. The clerk has responsibility to keep accurate records of city council financial accounts, and acted as custodian for Cusick’s operating bank account used to receive and safeguard public funds and to make public expenditures on behalf of the town.  Cusick’s account also had two credit cards issued to make purchases on behalf of the town: one issued to Cusick’s elected mayor, and one issued to Servas as town clerk.  Both credit cards were only for authorized public purchases and expenses, and were only to be used by the specific official to whom they were issued. 

The Indictment alleges that Servas fraudulently and without authority used the mayor’s town credit card, as well as his own town credit card, to embezzle and transfer more than $190,000 in public town funds from Cusick’s bank account to PayPal accounts owned and controlled by Servas and his spouse, and to a cryptocurrency account owned and controlled by Servas. 

According to the Indictment, in March of 2023, other town officials expressed concern that funds were missing from the town’s account.  The Indictment alleges that Servas then contacted the Pend Oreille County Sheriff’s Office to report that between $150,000 and $200,000 had been stolen from the Town of Cusick’s operating bank account, using the mayor’s credit card account to which Servas stated only the mayor had access.  The Indictment further alleges that, after making this report, Servas wrote a fraudulent $4,961 check from Cusick’s account to himself, forged the mayor’s signature as well as that of another town official, and cashed the check on or about March 20, 2023. 

“An elected public official, entrusted with the funds to keep communities safe and strong, has a moral duty and legal responsibility to protect that money”, stated U.S. Attorney Waldref. “My office is committed to stopping all fraudsters, especially those who abuse their positions of trust.”

This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency, with investigative and logistical support from the Pend Oreille County Sheriff’s Office and the Washington State Auditor’s Office.  This case is being prosecuted by Assistant United States Attorney Dan Fruchter.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.