Today, King County prosecutors charged a former Seattle Public Utilities employee with 70 counts of theft for allegedly stealing nearly $1.1 million in customer checks, which were diverted from water main extension projects into a private bank account.

via the Seattle Times:

Seattle King County Prosecutor Dan Satterberg said it is the largest embezzlement of public funds in modern King County history. “I don’t know what is more shocking, the sheer greed involved in this scam or the simplicity with which the defendant allegedly perpetrated this fraud.”

Joseph Phan, 44, was charged with 67 counts of first-degree theft and three counts of second-degree theft. First-degree theft can carry a maximum prison sentence of ten years, but a standard range of 43 to 57 months in prison. He remains in jail in lieu of $750,000.

Charging documents allege that Phan used the money for personal expenses, including a down payment on the purchase of a rental home, a new car, and to pay down his credit card debt. He's charged with 67 counts of first-degree theft, which carries a statutory maximum sentence of 10 years in prison, as well as three counts of second-degree theft.

In light of the charges, Jean Godden, chair of the city council's Libraries, Utilities and Center Committee, has called for the City Auditor to conduct an independent review of SPU's financial system. “We need to move forward now to immediately fix this problem," Godden said in a statement. "Ratepayers demand and deserve financial accountability from the utility and they will get it."

The City Auditor and SPU are expected to report back to the committee with a scope of work by March 27, 2012, and present review plan details to the Committee at the April 3, 2012, meeting.