Full Breakdown
Washington, Oklahoma Town Faces $1 Million Fraud After Forensic Audit
7/17/2026, 5:29:47 AM
Audit Findings Reveal Massive Misuse of Funds
A 35-page forensic audit released July 14, 2026 by the Oklahoma State Auditor & Inspector’s Office determined that the Town of Washington (population 673) spent roughly $3.25 million between July 1 2020 and July 31 2024, of which $1,022,412 was fraudulent or unauthorized. Former town clerk-treasurer Susan Noel misappropriated $676,368 for personal credit-card bills, a mortgage, Amazon purchases, a golden-doodle puppy and related breeding costs, and a variety of other items. An additional $346,044 involved unauthorized payroll, employee benefits, and a $210,400 contract with a tax-resolution firm that did not reduce the town’s $176,887 IRS payroll-tax liability.
Background and Oversight Failures
The audit was requested in 2024 by the Town Board of Trustees after newly elected trustees raised concerns about missing financial records. Auditor Cindy Byrd described the case as “the worst example of board oversight I have seen in my 29 years of government auditing experience.” The report concluded that the Board “failed to provide the oversight needed to safeguard public funds,” noting that basic board engagement could have prevented the losses.
Key Individuals and Entities
- Susan Noel – clerk-treasurer (served 2007-2024), primary perpetrator.
- Paul Aday – former town administrator, co-signatory on bank accounts, terminated September 24 2024.
- Kasey Lesher and T.R. Lesher – daughter and son-in-law of Noel, resigned May 14 2026.
- Mayor Joel Siria, Town Administrator Brandon Wansick, and trustees James Andrews and Tony Brennan – issued post-audit statements.
- Auditor Cindy Byrd – State Auditor & Inspector, author of the audit.
Financial Impact – Data and Statistics
- Total town expenditures (July 2020-July 2024): $3.25 million.
- Fraudulent/unauthorized share: 31 % ($1.022 million).
- Misappropriated by Noel: $676,368 (credit-card payments $267,160; PayPal $191,777; Venmo $30,681; Amazon $25,979; mortgage $2,859; other items $157,111).
- Unauthorized payroll and benefits: >$40,000 (general fund), $30,000 (cemetery fund), $9,194 duplicate December 2023 payments.
- Unpaid IRS payroll taxes (2012-2019): $176,887 plus interest and penalties.
- Tax-resolution contract payments: $210,400, none applied to IRS debt.
Official Statements & Responses
Auditor Byrd emphasized that the $1.022 million “is only the amount we could prove” and warned that the true loss may be higher due to altered or missing records. Town officials asserted that corrective actions are underway: board members now have online access to banking and QuickBooks, multiple signatures are required on checks, and a more secure cash-deposit process has been instituted. Mayor Siria and Administrator Wansick expressed frustration on behalf of residents and pledged continued transparency, including an upcoming town-hall meeting in early August.
Criticism & Opposition
The audit noted that while some trustees repeatedly requested financial records, they were met with resistance and altered bank statements. The report highlighted that “the lack of limited staff can make it difficult to separate financial duties,” underscoring the board’s responsibility for oversight despite staffing constraints.
Conflicting Reports & Gaps
Sources differ on the total flagged as fraudulent: the KOCO report cites $740,000, while the Oklahoma State Auditor’s Office documents $1,022,412. Additionally, the audit could not determine the full extent of losses because of missing, altered, and destroyed records, leaving the precise amount of misappropriation uncertain.
Verbatim Quotes
- “This was the worst case of board oversight that I have seen in 29 years of government auditing experience.” — Cindy Byrd, State Auditor
- “This was a case of one individual using the town's checkbook as if it was her own,” — Cindy Byrd
- “The $1,022,000, that's only the amount we could prove,” — Cindy Byrd
- “What Noel did was very brazen," Byrd said.” — Cindy Byrd
- “We've taken preemptive steps to make our town better,” — Brandon Wansick, Town Administrator
What’s Next
The district attorney’s office has requested an investigation by the Oklahoma State Bureau of Investigation, and Auditor Byrd indicated that “the district attorney has enough to go forward and file charges.” The town plans a public town-hall meeting in early August to field resident questions, while additional financial safeguards continue to be implemented.
