Former DNR Employee Accused of Travel Fraud Scheme

A former Department of Natural Resources employee is facing allegations of forgery and first-degree theft after a state investigation revealed a years-long scheme involving falsified hotel invoices and unearned per diem payments.

Kevin R. Peterson, 36, a former Forest Check Cruiser based in Port Angeles, is accused of misappropriating approximately $28,800 in public funds between January 2020 and June 2024. The allegations came to light following a suspicious sighting of his work vehicle and a subsequent forensic audit released late last year.

The Drive-By Discovery

The investigation began with a chance observation on the evening of July 24, 2024. Peterson’s supervisor, David Hurn, was driving home from a softball game at Shane Park in Port Angeles when he passed Peterson’s residence.

According to case reports filed by the Clallam County Sheriff’s Office, Hurn noticed Peterson’s state-issued work truck parked in the driveway. This raised immediate red flags because Peterson was scheduled to be working on the “Fish and Chips” timber sale in Forks that week and had claimed he was staying overnight in the area due to the commute.

“If Kevin would have been cruising Fish and Chips timber sale, Kevin would have been staying out of town,” Hurn noted in the investigation report.

Suspicious of the discrepancy, Hurn began reviewing Peterson’s past travel vouchers. He discovered what investigators later described as a pattern of “cut and paste” forgery on digital receipts.

A forensic accounting report by Eide Bailly LLP, commissioned by the DNR, analyzed 70 hotel invoices submitted by Peterson. The findings revealed glaring irregularities:

• Duplicate Information: 68 of the 70 invoices listed the exact same credit card authorization number, a unique code that should change with every transaction.
• Identical Logistics: 66 of the invoices showed Peterson checking out at exactly 10:50 a.m., and 67 invoices listed the same room numbers repeatedly.
• Ghost Stays: When Clallam County Sheriff’s Deputy Anthony Demorest contacted the hotels, managers could not find records for the vast majority of the claimed stays. The Dew Drop Inn in Forks, for example, could not locate 64 of the 66 invoices Peterson submitted.

Managers at the Dew Drop Inn confirmed that Peterson had only stayed at the motel twice: once in October 2020 and once in March 2022.

State Auditor Findings

The Washington State Auditor’s Office released a fraud investigation report on December 26, 2025, validating the internal findings.

State Auditor Pat McCarthy’s report concluded that Peterson submitted receipts for travel that “did not occur,” resulting in a misappropriation of $28,791—split between $16,364 in bogus hotel expenses and $12,444 in unearned per diem.

The SAO report also noted questionable fuel charges, citing instances where Peterson purchased gas in Port Angeles or Sequim on days he claimed to be staying in Forks.

No Response

Peterson was placed on administrative leave during the inquiry and was eventually terminated by the DNR on February 11, 2025.

Throughout the investigation, Peterson declined multiple requests for interviews with law enforcement and auditors, often citing a need for legal representation. However, in a letter to DNR Regional Manager William Wells, Peterson sidestepped the allegations while reflecting on his decade with the agency.

“I have no response to the allegations put forth,” Peterson wrote. “I am happy I got the privilege to walk tons of DNR land, admire the beauty and measure some trees along the way.”

Legal Action

Following the conclusion of the Sheriff’s investigation in August 2025, Deputy Demorest requested charges of Forgery (RCW 9A.60.020) and Theft in the 1st Degree (RCW 9A.56.030) be referred to the Clallam County Prosecutor’s Office.

The DNR has stated it is reviewing options to recover the stolen funds, as well as the $24,000 cost of the internal investigation.

Clallam County Prosecuting Attorney Mark Nichols told me that his office is “in receipt of this referral” and is “in the process of conducting a charging review.”

Nichols says his office has “not yet reached a decision on this case.”

A copy of the Probable Cause Report is available here.