Former Cusick town clerk, council member pleads guilty to bank fraud

A former Cusick town clerk and council member pleaded guilty to bank fraud Wednesday for embezzling more than $195,000 from the town.

Luke Michael Servas was the Cusick town clerk from October 2022 to March 2023. During that time, he was responsible for managing the town’s finances and accounts.

Servas used his town credit card and the card issued to the mayor to transfer money to his own accounts, his spouse’s accounts and to a cryptocurrency account, according to court documents.

When town officials flagged the missing funds, Servas reported the theft to the Pend Oreille County Sheriff’s Office, saying it was the mayor’s credit card account that was used.

“Mr. Servas not only carried out a fraudulent scheme to rob a town of its financial resources, but when his colleagues noticed the money missing, Mr. Servas filed a report with law enforcement to hide his theft,” United States Attorney Vanessa Waldref said in a statement. “Mr. Servas took these actions while an elected public official with a moral duty and legal obligation to protect that money. Our communities trust elected officials to serve others, rather than to look after only their own self-interest.”

Initially, Servas was charged with 76 counts of fraud, which will be dismissed at the sentencing in exchange for Servas’ plea. Prosecutors will recommend a sentence within the standard federal sentencing range, according to court documents.

Servas will have to pay restitution of more than $195,000.

Investigators said this case was important to pursue in part because Servas broke the community’s trust.

“I’m sure a small town like Cusick could have used the nearly $200,000 Mr. Servas embezzled,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Even more disturbing, Mr. Servas served in a position of trust as the Town Clerk when he committed his fraud. Investigating the corruption of public officials remains one the FBI’s most important priorities.”

Waldref said all elected officials need to be held accountable if they mishandle taxpayer funds.

“When elected officials abuse this trust by committing theft and lining their own pockets with taxpayer money, these officials devastate our communities and undermine our democratic system of government,” Waldref said.

Servas is set to be sentenced in November.