New details on how state uncovered Franklin County fraud case

WASHINGTON STATE -- The State Auditor's Office released a report on the allegations of fraud that rocked the Franklin County Public Works Department. It offers new details on how the fraud was first detected and how much Franklin County should seek in retribution. The report may be found here.

In it, the State Auditor's Office explains how the first inklings of suspicion developed due to a change required by the IRS. When the County was required to report tax identification numbers for vendors, the Auditor's Office had problems reaching a vendor that had received payments from Franklin County. This began in an investigation which ultimately resulted in the firing and filing of criminal charges against the former head of accounting, Dennis Huston.

The report also details the suspected amount of taxpayer dollars stolen each year, totalling $1.7 million. There is also more than a million dollars missing that is considered questionable. The state says Franklin County should seek repayment of the $1.7 million in addition to more than $32,000 in investigation costs.

Huston faces multiple felony charges related to the allegations of fraud. He is currently awaiting trial.