It’s time for federal prosecutors to take their swing at Michelle “Mo” Malkin. The Seattle PI reported Thursday night that the director alleged to have embezzled Capitol Hill women’s health service Verbena out of existence in 2008 has been indicted on three counts of wire fraud. The indictment is embedded, below.
In 2011, a King County judge ruled that Malkin owed the shuttered clinic $80,000 in a lawsuit over the alleged thefts. Malkin’s attorney has since appealed that verdict. Federal prosecutors believe Malkin stole $120,000 from the nonprofit but people working at the clinic think the total could have been much higher. Here’s how 2008′s end came at Verbena, as reported by the Seattle Gay News:
According to court records, Malkin had written checks on Verbena’s account to herself, to fictitious consulting agencies she owned, and to her partner. She also wrote checks to Caesar’s Palace casino in Las Vegas.
On May 11, Malkin was put on administrative leave.
In all, Haack estimates that Verbena lost $500,000.
The consequences for anyone associated with Verbena fiscal collapse were devastating. On May 13, Verbena’s entire staff was terminated.
Opened in 1992, Verbena was a “provider of community health services and health education to lesbian and bisexual women, and transgender individuals,” according to court documents. It was located at 511 E Pike, home today to Kaladi Brothers and Gay City Health.