Ex-DCSO captain’s mistress sentenced for lying to FBI, IRS

A former Deschutes County Sheriff’s Office employee and mistress of a now-imprisoned former sheriff’s captain was sentenced this week to three years of probation and 200 hours of community service for lying to FBI and IRS agents, federal prosecutors said Wednesday.

Krista Jean Mudrick, 36, was sentenced Monday in Eugene by U.S. District Judge Michael J. McShane.

Last Sept. 15, Mudrick pleaded guilty to making material false statements to federal agents about her relationship with former Deschutes County sheriff’s Captain Scott Beard and receiving cash and gifts from him. On Sept. 8, McShane sentenced Beard to five years in prison for stealing $205,747 in public funds designated for use in combating drug crimes.

Prosecutors said Beard falsified records to steal from programs receiving federal funds, which he was entrusted to manage, and then laundered the money by making cash deposits into Mudrick’s bank account.

Beard also used some of the public money to fund an international vacation to a resort with Mudrick, bought her a motorcycle and paid for her apartment.

McShane told Beard when imposing the five-year sentence that “(t)he community has to know that (this conduct) will not be tolerated.”

During her own sentencing hearing, Mudrick admitted lying to agents but denied knowing Beard was stealing public funds.

A long-time volunteer for numerous charities, Mudrick offered to do community service work.

When imposing the probationary sentence, McShane noted this was Mudrick’s first offense and her lies had not impeded the agents’ investigation of Beard.

This case was investigated jointly by the FBI and IRS and prosecuted by Christopher Cardani and Frank R. Papagni, Jr., assistant U.S. attorneys for the District of Oregon.