Luke Michael Servas, Bank Fraud, Washington 2024

SPokane, Washington – Former Town Clerk and Town Council Member Luke Michael Servas has pleaded guilty to bank fraud in connection with embezzling town funds, according to the U.S. Attorney for the Eastern District of Washington.

According to the plea agreement and other court filings, Servas embezzled more than $195,000 while employed as the Town Clerk for the town of Cusick, Washington between October 2022 and March 2023.

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.

U.S. Attorney Vanessa R. Waldref called out Servas for his scheme, stating, “Mr. Servas not only carried out a fraudulent scheme to rob a town of its financial resources, but when his colleagues noticed the money missing, Mr. Servas filed a report with law enforcement to hide his theft.”

Waldref continued, “Mr. Servas took these actions while an elected public official with a moral duty and legal obligation to protect that money. Our communities trust elected officials to serve others, rather than to look after only their own self-interest.”

The 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. The case is being prosecuted by Assistant United States Attorney Dan Fruchter.

Servas is scheduled to be sentenced on November 13, 2024, in Spokane, Washington. The maximum sentence for bank fraud is 30 years in prison and a $1 million fine.

“I’m sure a small town like Cusick could have used the nearly $200,000 Mr. Servas embezzled,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Even more disturbing, Mr. Servas served in a position of trust as the Town Clerk when he committed his fraud. Investigating the corruption of public officials remains one the FBI’s most important priorities.”

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