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RIDDLE, Ore. — A 53-year-old woman from Riddle could spend up to 30 years in federal prison on a bank fraud charge after pleading guilty to stealing nearly $1 million from her former employer.
Christina Klauda pleaded guilty to one count of bank fraud and two counts of making and subscribing false federal income tax returns.
She admitted to using her position of trust as manager and bookkeeper to defraud Tower Timber Services, Inc. from 2014 to 2023.
According to court documents, Klauda oversaw payroll, accounts payable, invoicing, employee dispatch, and the preparation of income tax forms.
She admitted to using her control of the company’s financial system to defraud Tower Timber of at least $944,371.97. The government estimates company losses at over $1.08 million.
She Increased Her Hourly and Overtime Rates and Created a Second Employee Profile
In her plea agreement, Klauda said she began the scheme by increasing her hourly and overtime rates and overstating hours worked.
By 2018, she had created a second employee profile to receive duplicate payroll payments. She concealed paper checks by deleting the transactions from the accounting software.
Klauda further admitted to using the company owner’s signature stamp without authorization to issue additional checks to herself and her personal creditors.
She disguised the payments as loans, reimbursements, or draws, and removed the transactions from company records.
Klauda admitted that she also failed to report the income to the Internal Revenue Service.
Court documents revealed that Klauda failed to report $38,140 in income in 2018 and $74,144 in income in 2019, resulting in a tax loss of $27,985.
The bank fraud charge carries a maximum sentence of 30 years in federal prison, a $1 million fine, and five years of supervised release.
The tax fraud charges each carry a maximum of three years in federal prison, a $100,000 fine, and one year of supervised release.
Tidings Data Snapshot
Maximum Penalties in the Klauda CaseStatutory maximums — not an imposed sentence| Charge | Prison | Fine |
|---|---|---|
| Bank fraud | 30 years | $1M |
| Each false-return count | 3 years | $100,000 |
There are two false-return counts. Actual punishment is determined at sentencing. The agreed restitution range includes losses to both Tower Timber and the IRS.
Source: U.S. Attorney’s Office, District of Oregon / November 4, 2026; 18 USC 1344; 26 USC 7206DailyTidings.com
Klauda has also agreed to pay restitution to the victims of between $972,356.97 and $1,111,771.56, including losses sustained by Tower Timber and the IRS.
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