Pasco official admits to embezzling funds, $90,000 missing

The director of the Downtown Pasco Development Authority admitted to embezzling an estimated $90,000 from the agency and stealing money from a previous employer in New Jersey, police said.

Michael A. Goins, 36, told police that he milked money from the non-profit, which is partially funded with taxpayer dollars, to pay for personal bills and airplane tickets, according to court documents filed Wednesday.

Goins confessed that he would move money from one account to another so missing funds would go unnoticed.

“Even though Goins said that his intent was not to embezzle that much money, the juggling act got out of control and everything tumbled down when the IRS and others began calling for answers,” Detective Tony Aceves wrote in a probable cause affidavit.

Goins appeared in Franklin County Superior Court on Wednesday, a day after he was arrested by police and booked into jail on suspicion of first-degree theft.

Judge Robert Swisher set bail at $100,000 after county Prosecutor Shawn Sant told the court that Goins was allegedly involved in another embezzlement case in New Jersey, where he worked at a retirement home.

Prosecutors have until late Friday afternoon to officially charge Goins, who is under suicide watch at the jail.

Court documents reveal Goins tried to commit suicide prior to his arrest, which led to police finding out troubling details about his past, including that he was once listed as a missing person in New Jersey shortly before being hired in Pasco.

There was a long moment of silence Wednesday in court as Swisher read an affidavit detailing how Goins allegedly began stealing money from the agency just six months after he was hired in the summer of 2013.

Police were notified Nov. 18 by the president of the downtown association’s board of directors, Michael Miller, that Goins might be stealing money from the agency, court documents said. Goins was in charge of the agency’s financial affairs, including overseeing bank accounts and payroll, and writing all checks.

Miller was alerted recently by officials at the Franklin PUD that several hundred dollars was outstanding on the agency’s electric bill, court documents said. Miller also learned that Goins owed about $26,000 in back child support.

Investigators from the IRS then notified Miller that the organization owed $50,000 in unpaid taxes.

“Wanting answers, (Miller) phoned Goins on Nov. 17 and requested an immediate meeting so that Goins could explain why several (agency) checks had bounced and why bills were overdue,” Aceves wrote in court documents.

Goins agreed to meet with Miller to discuss the issues, but instead of showing up to the meeting, Goins tried to commit suicide, court documents said. He drank alcohol and took a “large amount” of prescription pills at his Richland home.

Goins’ wife found him and he was taken to Kadlec Regional Medical Center to be treated, court documents said. He was then taken to a psychiatric hospital for evaluation.

After the suicide attempt, Goins’ wife met with police and told them what she learned about his life in New Jersey, court documents said. He apparently vanished from New Jersey after the previous embezzlement case came to light, leaving behind a wife and kids to move to Washington to be with his current wife.

Goins and his current wife met online in 2012 while he was still “happily married” and living in New Jersey, court documents said. When she found out Goins was married, he lied and told her he was going through a nasty divorce.

A short while later, Goins moved to Washington and his current wife soon learned from one of his family members that he was listed as a missing person in New Jersey.

However, Goins explained that it was a misunderstanding, court documents said. The couple moved on and eventually got married.

“After the suicide attempt, Goins’ wife began to dig and she soon discovered that Goins had never stopped lying and that their relationship was nothing more than a scam,” Aceves wrote in the affidavit.

Goins admitted to his wife a few days after the suicide attempt that he had stolen money from the downtown association and used it for personal expenses, court documents said. He also wrote a letter to Miller admitting he stole money and asking for forgiveness.

After Goins was arrested, he told police that he stole money to pay for his rent, power and cable bills, and to buy plane tickets to go back to New Jersey, court documents said. He also confessed to stealing money from the retirement home and intentionally disappearing.

No charges were apparently filed in the first embezzlement case. The retirement home agreed to handle the issue civilly because the company “did not want to be in the media’s spotlight,” court documents said. It’s unclear how much money was stolen.

Goins told police that he started taking money from the downtown association in order to pay off unpaid child support.

“Even though Goins claimed he would eventually replace the money he illegally took, he made sure the (agency’s) insurance was paid so that insurance would cover the stolen money if he was ever caught,” Aceves wrote in court documents.

Miller, who has been the downtown association’s president for several years, told the Herald his agency has hired an accounting firm to determine exactly how much money was stolen and if any money is owed to employees or businesses.

The downtown association puts on several events, including the Fiery Foods Festival, the Farmer’s Market, Food Truck Fridays and the Specialty Kitchen.

Goins successfully asked the city council in 2014 to increase the amount of money it gives annually to the downtown association to $90,000 in 2015 and $120,000 in 2016. That was an increase from $60,000 the previous three years.

“At this point we don’t know how much money has been taken or used and we might not know how much was used for another 30 or 90 days,” Miller said.

Pasco Mayor Matt Watkins told the Herald the city supports the downtown association and officials will work to recoup any city money that is missing.

“Anytime there are allegations this serious or shocking, as soon as something comes to light you have to take action, and I think the (president) and the (agency’s) board are doing that,” he said. “We are obviously are going to have to make some changes.”

Officials had no suspicion until recently that Goins was stealing money, Miller said. The agency will work to tighten accounting procedures to ensure money is tracked better.

Miller was on a board that hired Goins in 2013, though the president can’t recall where Goins was previously employed before coming to Pasco, he said.

Goins was apparently vetted by city officials before being hired, he said.

“The scary part in this whole thing is we have been blindsided,” he said.

This story was originally published December 2, 2015 at 2:11 PM with the headline "Pasco official admits to embezzling funds, $90,000 missing."