Federal prosecutors say the former lumber company employee manipulated payroll, issued unauthorized checks, and concealed stolen income over nearly a decade.
AT A GLANCE
Pleaded Guilty: Christina Klauda, 53, of Riddle, Oregon
Former Employer: Tower Timber Services, Inc.
Scheme: Embezzlement through manipulated payroll, duplicate payments, and unauthorized checks
Period: 2014–2023
Estimated Losses: More than $1.08 million, according to federal prosecutors; Klauda acknowledges at least $944,371.97
Guilty Plea: One count of bank fraud and two counts of filing false federal income tax returns
Tax Loss: $27,985
Restitution: Approximately $972,357 to $1.11 million
Investigating Agency: IRS Criminal Investigation
Announced: November 4, 2026
RIDDLE, Ore. — A 53-year-old Riddle woman has pleaded guilty to federal bank fraud and tax charges after admitting she embezzled nearly $1 million from her longtime employer through a scheme involving inflated wages, duplicate payroll payments, and unauthorized checks.
Christina Klauda, a former office manager and bookkeeper for Tower Timber Services, Inc., pleaded guilty to one count of bank fraud and two counts of making and subscribing false federal income tax returns, according to the U.S. Attorney's Office for the District of Oregon.
Federal prosecutors announced the guilty plea Wednesday, November 4, saying the scheme continued from 2014 through 2023.
Klauda began working for the Riddle-based lumber company in 2014, overseeing payroll, accounts payable, invoicing, employee dispatch, and employee tax forms. Prosecutors said she used that access to manipulate the company's financial records and divert money for personal use.
The scheme initially involved increasing her own hourly and overtime pay rates while reporting more hours than she actually worked.
In 2018, Klauda created a second employee profile in the company's accounting software, allowing her to receive duplicate payroll payments. One payment was deposited directly into her bank account, while another was issued by paper check.
According to her plea agreement, Klauda concealed the additional payments by deleting the transactions from the company's accounting records.
She also admitted using the company owner's signature stamp without permission to issue checks to herself and personal creditors. Those payments were disguised as loans, reimbursements, or draws, with the corresponding transactions removed from company records.
Federal authorities estimate Tower Timber lost more than $1.08 million through the scheme. Klauda acknowledges responsibility for at least $944,371.97 in losses.
The investigation also uncovered federal income tax violations.
Klauda admitted failing to report approximately $38,140 in stolen income on her 2018 federal tax return and another $74,144 on her 2019 return. Prosecutors said the unreported income resulted in a combined federal tax loss of $27,985.
Under the plea agreement, Klauda has agreed to pay restitution to the victims. The parties estimate the total restitution obligation will range from approximately $972,357 to $1.11 million, including losses sustained by Tower Timber and the Internal Revenue Service.
The bank fraud conviction carries a maximum potential sentence of 30 years in federal prison, a $1 million fine, and five years of supervised release. Each of the two tax convictions carries a maximum sentence of three years in prison, a $100,000 fine, and one year of supervised release.
Those penalties are statutory maximums, not a sentence imposed by the court.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Katherine A. Rykken.
Federal officials did not announce a sentencing date in Wednesday's release.
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