Enumclaw Drainage Boss Sentenced in $468K Flood Tax Scam

SEATTLE – Allan Thomas, 70, of Enumclaw, Washington, a former long-time Commissioner of East King County’s Drainage District 5 and 5A, received a 30-month federal prison sentence today for orchestrating a brazen scheme to steal over $468,000 in tax dollars earmarked for vital flood control measures. U.S. District Judge Richard A. Jones also handed down a three-year term of supervised release following Thomas’ incarceration.

Thomas was convicted on multiple federal felony counts, including conspiracy, four counts each of wire fraud and mail fraud, and one count of aggravated identity theft. Judge Jones didn’t mince words at sentencing, highlighting Thomas’s cynical exploitation of public trust and the particularly egregious detail of involving his own son in the criminal enterprise while the young man was barely out of high school. “You were a public officer in a position of trust… People trusted you not to enrich yourself,” Jones stated. “These funds were ill-gotten gains, they were not earned…. It was a breach of trust.”

U.S. Attorney Nick Brown condemned the scheme, stating, “Mr. Thomas and his wife treated taxpayer money as if it was their own,” adding that the pair “repeatedly lied, claiming tax dollars for ditch maintenance work that was never performed.” The fraud didn’t just line the Thomases’ pockets; it actively increased the risk of flooding in the district, as the drainage ditch network fell into disrepair due to the lack of legitimate maintenance. The couple’s actions put communities at risk for personal gain.

Court records reveal the scheme spanned at least six years, beginning around 2012. Thomas established a business account under the name A C Services, jointly held with his son. Over that period, a staggering $413,323 in taxpayer funds were funneled to A C Services under the false pretense of drainage ditch maintenance. However, Thomas’s own son testified he performed only two minor jobs before 2012 and no further work on the drainage system. A current commissioner confirmed at trial that the ditches had received minimal upkeep for years, and that when he took office, the lack of maintenance was obvious.

Financial records painted a clear picture of the stolen funds quickly being diverted for personal use. Between 2012 and 2017, money deposited into A C Services’ account was rapidly transferred to accounts belonging to the Thomases or used to cover their expenses – including hay purchases, mortgage payments, and property taxes. Over $68,000 was withdrawn in cash. When an investigation began to heat up in 2018, the Thomases doubled down, establishing a second company, City Biz, to continue funneling the stolen funds directly to themselves and their dairy farm. An accomplice who aided in the City Biz fraud now faces a federal felony conviction for lying to the FBI.

The Thomases worked in concert, submitting fraudulent documents via mail and wire. Joann Thomas forged the signatures of both Allan Thomas’ son and another drainage district commissioner on records and checks. Allan Thomas was specifically convicted of participating in the forgeries related to the second commissioner, constituting aggravated identity theft – a charge carrying a mandatory two-year sentence to be served consecutively with the other counts. In total, the couple defrauded taxpayers of $468,165. Joann Thomas was sentenced to three years in prison last month for her role in the scheme. Judge Jones has scheduled a hearing to determine restitution.