Kenai woman indicted on new fraud charges

  • By DAN BALMER
  • Friday, December 5, 2014 5:45pm
  • News

A Kenai woman already in prison for theft has been subpoenaed to appear for arraignment on 85 new fraud and forgery charges of a Kenai business in 2012.

On Monday a Kenai Grand Jury indicted Kathi Malston, 40, for scheming to defraud, first-degree theft, 14 counts of forgery in the second-degree, 15 counts of falsifying business records and 42 felony counts of unauthorized use of an access device. Malston was also charged with six misdemeanor counts of unauthorized use of an access device.

Scheme to defraud and first-degree theft are both class B felonies and carry a maximum sentence of 10 years in prison and up to $100,000 fine for each charge. Forgery in the second-degree, falsifying business records and fraudulent use of access device are class C felonies that hold a maximum five years in prison and up to $50,000 fine.

The charges stem from Malston’s time as an accountant for Fire Control Systems, a Kenai-based fire protection equipment supplier. An employee of the business reported to Alaska State Troopers on Nov. 30, 2012 that Malston had embezzled a large sum of money, according to a troopers dispatch.

An investigation from the Alaska Bureau of Investigation’s Financial Crimes Unit lead to the seizure of evidence and troopers allege Malston stole more than $28,000 from the business.

Malston was first arraigned in Kenai Court on Sept. 27, 2013 on four forgery and theft charges. Malston plead guilty to second-degree theft on Aug. 14 and on Sept. 30, a year after her arraignment, Kenai Superior Court Judge Anna Moran sentenced Malston to four years in prison with two years suspended.

Part of Malston’s sentence denied her to possess checks or have a checking or savings account. Moran also denied her from employment to where she would have access to an employer’s financial account.

Malston is currently in custody at Hiland Mountain Correctional Center in Eagle River, a housing facility for female prisoners. According to the Department of Corrections, Malston is scheduled to be released in April 2015.

The new charges result from an ongoing investigation of her time employed with Fire Control Systems in 2012.

According to the indictment document, Malston knowingly forged 14 business checks and made 48 fraudulent credit card purchases between January and October 2012.

The falsified checks averaged more than $600 each. Malston falsified business records to show payments made to Alaska Communications Systems, Air Gas, Air Liquide, Brooks Equipment Company and Tyco Fire Suppression and Building Products among others.

Malston allegedly used the company credit card to make purchases at Everybody Rides on three separate occasions. Malston also charged purchases with American Eagle Outfitters, Progressive Insurance and for lodging at Millennium Hotel in Anchorage.

She is also alleged to have used the company’s credit card locally at Paradisos restaurant and to pay for a Soldotna lawyer.

More in News

Two snowmachine-triggered snow slabs are seen below the weather station of Seattle Ridge in Turnagain Pass on Dec. 3, 2021. (Photo courtesy of Chris Flowers and the Chugach Avalanche Center)
Multiple avalanches in Turnagain Pass reported Friday

The center reported Saturday that current avalanche danger was considerable above 1,000 feet and moderate below 1,000 feet.

The logo for the Kenai Peninsula Borough School District is displayed inside the George A. Navarre Borough Admin Building on Thursday, July 22, 2021 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
School district changes COVID policy for close contacts

The policy went into effect on Nov. 29

This 2010 photo shows the soon-to-be-replaced Tustumena come into Homer after spending the day in Seldovia. Gov. Mike Dunleavy announced on Saturday the state would be replacing the ferry. The replacement vessel has not yet been named, and a statewide contest will be held to name the new vessel, Dunleavy said. (Homer News File)
State moves ahead with replacement of Tustumena

The state has other plans for updating the marine highway.

A sign urging COVID-19 mitigation measures hangs at a free vaccination clinic at the Y intersection of the Kenai Spur and Sterling highways, on Tuesday, Nov. 30 in Soldotna, Alaska. (Clarion file)
Omicron variant spurs travel restrictions locally, nationally

It’s still unclear if the omicron strain is more dangerous than other COVID variants.

Commercial fishing and other boats are moored in the Homer Harbor in this file photo. (Photo by Michael Armstrong/Homer News)
Seawatch: Bycatch becomes hot issue

Dunleavy forms bycatch task force.

Junetta Delong browses the shelves at the Soldotna Library Friends’ book and art sale at the Soldotna Public Library on Saturday, Dec. 4, 2021. (Camille Botello/Peninsula Clarion)
‘Something for everyone’

Library holds art and book sale fundraiser

Danny Dommek takes photos with Santa at Soldotna Creek Park on Saturday, Dec. 4, 2021. (Camille Botello/Peninsula Clarion)
‘And to all a good night’

Soldotna celebrates Christmas in the Park

The badge for the Kenai Police Department (Clarion file)
Walmart briefly evacuated after bomb threat

The investigation is ongoing.

The new Homer Police Station, as seen Thursday, Sept. 24, 2020 in Homer, Alaska. Members of the Homer Police Department officially moved into the building on Thursday. (Photo by Megan Pacer/Homer News)
K-9 trooper team finds lost girl

A 12-year-old girl, poorly dressed for the elements, ran away from her downtown Homer home.

Most Read