- Lewis County Sirens.com - https://lewiscountysirens.com -

Breaking news: Museum director arrested in connection with drained endowment fund

This news story was updated at 3:40 p.m.

By Sharyn  L. Decker
Lewis County Sirens news reporter

CHEHALIS – The former director of the Lewis County Historical Museum was arrested today for theft in connection with the investigation of missing museum endowment funds.

Debbie Knapp, 52, of Chehalis, was brought into the Chehalis Police Department this morning for an interview and subsequently arrested and booked into the Lewis County Jail for 10 counts of first-degree theft, according to police.

The police department says the current amount of suspected fraudulently used funds is in excess of $100,000. The investigation isn’t finished however, according to police.

Chehalis police were asked in November to review the financial records of the museum, following revelations its endowment fund of more than $400,000 was spent.

It appears money was transferred from the endowment account to a museum bank account where a debit card was used to make personal purchases by Knapp of various goods from local businesses and services such as utility payments, Chehalis Officer Linda Bailey said this afternoon.

Police say Knapp signed for paychecks in excess of her salary as well, according to a news release from the Chehalis Police Department.

Last month, after museum members learned there was no money left in the endowment fund, four officers on the 13-member museum board were replaced, the accounts were closed and the museum was shut down temporarily. Police were asked to investigate.

At the time, new board president John Panesko said the fund was meant to be left untouched, so it could generate interest which could be spent. The museum’s budget was “in the red” and its books hadn’t been in balance since 2008, Panesko said.

Chehalis police say the current investigation covers the years 2008 through this year. The investigation into 2007 and 2006 is still underway, according to police.

No other individuals associated with the museum are suspected to be involved, according to police.

Knapp was hired as the director in July 2006, according to Officer Bailey.