Ex-Washington State Employee Sentenced for Embezzling Nearly $900,000

Significant Theft Shakes Public Confidence

Matthew Randall Ping, a former employee of Washington State, was recently sentenced to 18 months in federal prison following his conviction for wire fraud. He admitted to embezzling almost $900,000 from state funds over several years.

The amount involved in this case is unprecedented in recent memory, marking it as one of the largest insider thefts in the past 15 years. Such a substantial loss has understandably undermined public trust in the state’s financial oversight.

Fraud Fueled by Gambling Addiction

Ping confessed not only to the fraud but also to filing false tax returns. A large portion of the stolen money was allegedly spent on gambling-related activities. He admitted that his gambling addiction heavily influenced his criminal actions.

Despite attempts to overcome this addiction, Ping noted a lack of sufficient support and resources to help him. The embezzled funds financed numerous gambling trips, including at least six visits to Las Vegas, paid off a luxury car loan, and covered his living expenses during that period.

In court, US District Judge Tiffany M. Cartwright emphasized the severity of Ping’s offense but also acknowledged the powerful impact of addiction, stating that gambling addiction can ruin lives even of otherwise respectable individuals.

Additionally, due to Ping’s failure to report his illicit income to the IRS, the government lost approximately $250,000 in unpaid taxes.

Details of the Embezzlement Scheme

Ping’s scheme was facilitated by his role at the Washington State Office of Administrative Hearings (OAH). After two years in his position, he misused his authority over departmental credit cards to funnel money into accounts he controlled.

He created accounts with names that appeared legitimate and fraudulently charged OAH credit cards to transfer funds. By exploiting his responsibilities as a management analyst and credit card custodian, he would approve his own transactions, bypassing normal checks and controls, which allowed him to carry out the fraud undetected for an extended period.

Consequences and Restitution

Ping has agreed to repay a total of $1,118,362, covering the stolen funds, losses to the state’s insurer, and unpaid taxes to the IRS. Following his prison sentence, he will be subjected to three years of supervised release.

Judge Cartwright encouraged Ping to use his experience to assist others battling gambling addiction and to promote awareness regarding available treatment and support services.