Current Cub News

 Gambling away our future
One Alumni's expensive addiction robbed the dreams of many college-bound Cubs.

A special investigation by the Harbor Light's Avery Heater

What Happened?

Over a one year period, Pauletta Huffman, NHS class of 1973, embezzled $62,000 from the NHS Alumni Association, depleting its assets.  The association, through decades of fundraising, donations and grants, had previously offered two $4000 scholarships to graduating NHS seniors every June.  However, to the embezzlement, they can no longer award those scholarships.

"What Pauletta has done to her alma mater in the name of greed (or addiction) effectively cancelled out our ability to offer scholarships to NHS graduates for the next eight years," said NHS Alumni Association President Dick Bevens.

For over the five years prior to the theft, which took place between November 2006 and June 2007, Huffman, 56, had served on the association's board as treasurer.  The asscoiation began to question Huffman's ethics when bank statements became suspicious and something just "didn't seem right," according to Bevens.

"We did operate a lot on trrust back then, because (Huffman) had been with us for several years," said Bevens, "Even though we had a two signature policy on all checks, we realized through looking at bank statements that on certain occasions the "pay-to" part of the check had been left blank.  And Huffman had been making checks out to herself."

Since the embezzlement, the Alumni Association has raised enough funds to honor the students already promised scholarships.  Although many NHS alumni have responded positively with donations, many have expressed a loss of faith in the association's business practices.

"It is indeed a sad and sorry day for our volunteer board of directors," said Bevens, "who placed so much trust and faith in Pauletta."

The Court Case

Huffman went befor a grand jury Dec. 4, 2008 and plead guilty to one coune of aggravated theft under Circuit Court Judge Sheryl Bachart.  Her sentence included 24 months probation, 60 days in the Lincoln County Jail and a total of $64,073.49 restitution to be paid to the Newport High Alumni Association in full (see sidebar).

"I always avoided tight spaces, but I had no idea how claustrophobic I was until I was confined for 60 days," stated Huffman in an online blog entitled "Gambling Addiction-Battling My Dragon"

According to her testimonu, Huffman frequented casinos wp to twice a week during the year.  "She indicates to me that basically the period of time in question was a blur to her.  Apparently the Newport scholarship fund is now in the proud possession of the Tribe of Siletz because it all went down the toilet in the Chinook Wind's Casino," stated Huffman's court-appointed attorney, Guy Greco.  Greco went on to explain that due to an untreated case of stage-three melanoma, Huffman suffered severe memory loss and remembers commiting only portions of the crime.

Bachart expressed extreme skepticism towards Huffman's claim of memory loss.  "What you did took planning...I don't know if it's a way to resolve in your own mind the gravity of what you did or if it's a way for you to live with yourself as a result of this...but $64,000?  I don't buy it for a minute that you don't remember that.  It's insulting to these people here that you would make that representation in court...you didn't steal from the Alumni Association, You stole from the kids who would benefit from that money."

Bachart continued on to give Huffman an opportunity to address the court and the Association with an apology, but she declined, stating, "I think everyone's suffered enough."

At the end of the hearing, Bachart expressed regret that she could not issue a stronger sentencing and sent Huffman immediately to jail.

The Harbor Light reaches Out

On March 8, The Harbor Light mailed Huffman a letter requesting an interview, inviting her to tell her side of the story.  She declined the offer.  A few days later, The Harbor Light tried again:

"Pauletta, after further investigation I urge you to reconsider.  This story could be groundbreaking for you.  As far as I can tell from your file, your restitution and court orders do no forbid you from spesking with me.  The Harbor Light and I have no affiliation with the Alumni Association whatsoever and I hope I'm not being forward by requesting a change of heart.  The Harbor Light plans to proceed with the story regardless of your contribution but I urge you to take this opprotunity.  We are not out to persecute you.  We want to find out what happened."

Huffman responded: "I would refer you to the last line of the Probation Conditions in the judgement, 'follow any direction of the parole officer.'  This section tefers to communications associated wit this case; therefore, all emails, phone requests, or letters are copied for files and cleared prior to responding.  Furthermore, the tone of your email indicates that you have determined the focus of your story and do not need my input.  Please discontinue any future contact by letter, email or phone.  Respectfully, Pauletta Huffman."

The Aftermath

"We have put procedures in place so that this will never happen again," said Bevens, "number one, all of our board members are bonded.  Number two, a check is not given unless the payee is physically written on the check.  And number three, the treasurer does not make out the checks."

As of March 2010, Huffman had repaid $1529 of the restitution owed.  She claims to have made the NHS Alumni Association the beneficiary for her life insurance policy.  However, at the current rate of payment, the restitution will not be paid in full for approximately 41 years.

Her Punishment

  • 24 months probation
  • violate no law
  • keep court informed of address
  • obey all dept. of corrections rules
  • don't associate with people engaged in criminal activity
  • no contact with the association or anyone who is a member of that association
  • no association sponsored events
  • posess no firearms
  • submit dna sample
  • undergo treatment for gambling addiction
  • not to frequent any establishment with gambling (casinos, bars, restaurants)
  • not to participate in any gambling activity (includes lottery and online sites)
  • will not handle anyany financial accounts for businesses or non-profits
  • ordered to pay all restitution $64,037.49 to Alumni Association and Friends
  • until all paid in full, will not leave Lincoln County without written permission
  • follow all directions of probation officer
  • minimum payments of $150 a month while on probation
  • 60 days in jail to report immediately

Reprinted with permission


Newport High School Cubs
Newport Alumni Association and Friends
PO Box 524 · Newport, Oregon 97365

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