Former Fasteners CFO indicted on allegations of using company money for personal use

A former employee of Fasteners Inc. has been indicted by a federal grand jury for allegedly using company money to pay for his children’s college tuition, a guided hunting trip and home improvement projects.

William Keith Jones was the Spokane Valley company’s chief financial officer and general manager. Between 2013 and 2016, Jones “knowingly and intentionally” devised a scheme to defraud the company, according to the Dec. 19 indictment filed in U.S. District Court in Eastern Washington.

Jones is accused of using at least $120,648 in company funds for personal expenses, according to court documents. He spent most of the money on tuition payments to Washington State University and Whitworth University, credit card bills and landscaping at his personal residence, the indictment says.

Jones also used company funds for $8,000 in payments to a British Columbia hunting outfitter and guide, and $23,000 for the purchase of a 1979 Ford truck and modifications to the vehicle, the indictment says.

According to court documents, Jones tried to disguise his personal use of Fasteners’ money by making false entries in the company’s internal records. Journal entries for the checks indicated the money was used for business expenses, such as utility bills, building signs and construction work, the documents say.

Jones withheld information from Fasteners’ accounting department and an outside certified public accountant hired to prepare the company’s tax returns, the indictment says. After he left the company, he allegedly gained remote access to his company email account and deleted his emails.

Jones, who could not be reached for comment Tuesday, is charged with 16 counts of wire fraud in the indictment. The legal action against Jones seeks the return of the money obtained through wire fraud, or forfeiture of Jones’ property.

Fasteners was sold in 2015 to Fastenal Co., a Minnesota industrial and construction supply retailer. The company retained its Spokane Valley offices.