Former Fortuna City Councilmember Kris Mobley has been federally indicted on three counts of mail and wire fraud stemming from allegations she embezzled more than $500,000 from a local construction company that had employed her for 30 years.
Journal attempts to reach Mobley, who was elected to the council in 2022 and resigned her post Jan. 29 as rumors began circulating that she was under FBI investigation, have been unsuccessful.
The indictment, which was filed yesterday, says Mobley began working for the construction company — identified only as “Victim Company” — in the early 1990s but assumed the role of bookkeeper in 2019 or 2020. The alleged embezzlement began “not later than” January of 2022, the indictment says, and continued until November, which is when city officials say they were notified of an ongoing FBI investigation. The theft allegedly took multiple forms.
According to the indictment, Mobley wrote 15 checks and made 107 electronic transfers from the company’s account totaling $366,800 to pay off her personal credit card accounts.
“The scheme to defraud also included Mobley’s use of the Victim Company’s business credit card at Capitol One for personal expenses,” the indictment alleges. “These included cash advances at casinos, airfare and hotel expenses for personal travel, and other non-business expenses that were not authorized by the Victim Company.”
The indictment further alleges Mobley wrote unauthorized checks to herself from the company’s account, issued payroll checks to herself for “hours that exceeded her regular hours,” issued duplicate payroll checks to herself and issued bonus payments to herself beyond what was authorized by the company’s owners.
“The scheme to defraud also involved Mobley falsely adding vacation time to herself in the Victim Company’s payroll system,” the indictment alleges. “Mobley directed another employee of the Victim Company to cash out the value of some of that vacation time and issue payment for it to Mobley.”
The three counts are charged as felonies, with Mobley facing up to 20 years in prison and a fine of up to $1 million. The U.S. Attorney’s Office has also filed an asset forfeiture allegation, which, if Mobley is convicted, would allow the federal government to seize the allegedly stolen funds or property of an equal value. According to court records, Mobley is scheduled to make her initial court appearance in the case at 9:30 a.m. Monday at the federal courthouse in McKinleyville.
While the indictment doesn’t name the construction company Mobley worked for, she told the Journal in 2022 that she was employed as a business manager at Beacom Construction, Co., based in Fortuna. A Journal message left for the company’s owners has not been returned.
Mobley sent an email shortly after 2:15 p.m. on Jan. 29 to Fortuna Mayor Mike Johnson, City Manager Amy Nilsen and City Clerk Siana Emmons announcing her resignation, “effective immediately.”
“I am sure that you are all aware of the rumors going around,” Mobley wrote. “Although I have not been charged with anything, I am aware of the backlash that the city has been getting. This is my battle to fight, not the city’s — I’m sorry that you’ve been dragged into the middle of this.”
The city sent out a press release later that afternoon announcing Mobley’s resignation and saying she was under FBI investigation for personal conducted unrelated to her role with the city. Nilsen later said city officials learned of the investigation in mid-November, adding that in her role on the council Mobley never had access to city funds or accounts.
Johnson and Mayor Pro Tem Tami Trent said they were informed Mobley was under investigation the day before she resigned her post, and Johnson issued a statement praising Mobley’s performance as a council member and reminding that, “she, as with all Americans, is presumed innocent until proven otherwise.”
The Fortuna City Council voted unanimously Feb. 3 to move forward with a process to appoint Mobley’s successor, setting a candidate application deadline of March 4 and candidate interviews for March 10, with a deadline of March 28 to make an appointment.
This article appears in The Humboldt County Fair is at a Crossroads.