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

Alaska Lt. Gov. Kevin Meyer speaks during a press conference announcing the administration’s push for changes to the state’s election system on Tuesday, Dec. 28, 2021, in Anchorage, Alaska. (Photo courtesy Kevin Goodman, State of Alaska)
Just 2 Alaska lieutenant governor candidates say 2020 presidential vote was fair

Alaska’s lieutenant governor will oversee the 2024 presidential election

Kenai Peninsula School District Superintendent Clayton Holland stand near the entrance to the district’s Soldotna offices on Thursday, March 17, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Academics, staff recruitment among district priorities for upcoming school year

The superintendent is ready to see KPBSD return to the district’s pre-COVID-19 academic performance

Raymond Bradbury preserves his salmon while dipnetting in the mouth of the Kenai River on Saturday, July 10, 2021. (Camille Botello/Peninsula Clarion file)
Personal use harvest reports due Monday

Northern Kenai fishing report

Evelyn Cooley competes in the barrel race at the Kenai Peninsula Fair on Aug. 12, 2022, in Ninilchik, Alaska. (Jake Dye/Peninsula Clarion)
Music, magic, daredevils and pigs

Kenai Peninsula Fair brings an assortment of activities to Ninilchik

Signs direct voters at the Kenai No. 3 precinct on Tuesday, Oct. 5, 2021. (Camille Botello/Peninsula Clarion file)
Signs direct voters at the Kenai No. 3 precinct for Election Day on Tuesday, Oct. 5, 2021. (Camille Botello/Peninsula Clarion)
Local candidates report support from state PACs

Labor unions and the National Education Association are among the groups putting money into Kenai Peninsula state election races

Signs and examples on the recycling super sack at the Cook Inletkeeper Community Action Studio show which plastics are desired as part of the project in Soldotna, Alaska, on Aug. 11, 2022. Plastics from types 1, 2, 4 and 5 can be deposited.(Jake Dye/Peninsula Clarion)
Local nonprofit accepting plastics for synthetic lumber project

The super sack receptacles can be found on either side of Soldotna

This July 28, 2022, photo shows drag queen Dela Rosa performing in a mock election at Cafecito Bonito in Anchorage, Alaska, where people ranked the performances by drag performers. Several organizations are using different methods to teach Alaskans about ranked choice voting, which will be used in the upcoming special U.S. House election. (AP Photo/Mark Thiessen)
Groups get creative to help Alaska voters with ranked voting

Organizations have gotten creative in trying to help voters understand how to cast their ballot, as the mock election featuring drag performers shows

A school bus outside of Kenai Central High School advertises driver positions on Wednesday, Aug. 10, 2022, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Staff shortage, gas prices change school bus routes

The changes do not apply to the district’s special education students

The cast of “Tarzan” rides the Triumvirate Theatre float during the Independence Day parade in downtown Kenai, Alaska on Monday, July 4, 2022. (Camille Botello/Peninsula Clarion)
The show goes on as Triumvirate seeks funding for new theater

The troupe has staged shows and events and is looking to debut a documentary as it raise funds for new playhouse

Most Read