07:57 AM PDT on Friday, April 28, 2006

Associated Press

The former finance director of West Linn has been indicted on charges of stealing more than $1.4 million from the Portland suburb in one of the largest public corruption cases in state history.

AP Photo

Elma Magkamit, seen in a photo provided by the Clackamas County Sheriff's Office.

Elma Magkamit faces 114 felony counts in the indictment handed up Thursday by a Clackamas County grand jury. She was being held at the Clackamas County Jail with bail set at $2.2 million.

The charges include aggravated theft and forgery. If convicted, Magkamit could face up to 80 years in prison under the maximum sentence.

Pat Hearn, who heads the staet Government Standards and Practices Commission, said he has never seen a public corruption case this large in the 15 years he's been running the ethics agency. He said he plans to take the case to commission members at their meeting in May.

Investigators said Magkamit forged and deposited 57 city checks into her personal account over a five-year period.

A city signature stamp was used to forge the checks, which ranged in value from $4,250.00 to $38,922.90, according to West Linn police.

The checks were made out to Magkamit Consulting, a bogus company, or Larry Magkamit, Magkamit's husband, police said.

Larry Magkamit, a small business auditor, is not a suspect in the thefts, said West Linn police Chief Terry Timeus.

Magkamit, 53, initially admitted to forging five checks and depositing them to her account. It was not until later that investigators found additional checks, police said.

Magkamit gambled away much of the stolen money, according to investigators.

Timeus said she traveled to Las Vegas and Reno, Nev., to play video poker and slot machines.

The missing money is equivalent to about 14 percent of West Linn's annual $10.1 million operating budget, officials said.

Magkamit resigned last year after four years as West Linn finance director. She had worked for Clackamas County since 1994.