Feds investigating theft of $850k from rural water association

OTIS, N.M. (KRQE) – The feds are now looking into the theft of $850,000 dollars from the Otis Water and Sewage Association.

The association serves 4,000 rural residents near Carlsbad.

Back in May, KRQE News 13 told you how a state audit revealed former office manager Lori Whitaker was using an association credit card to draw cash at casinos.

“They do deal with a fair amount of cash each year, but she was also stealing from essentially reserves and funds that were going to be used for future capital investments, improving water,” State Auditor Tim Keller said in May.

The FBI has confirmed the Eddy County Sheriff’s Office handed over the case to them, but wouldn’t say if charges will be filed.

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