Fired DCSO captain released from jail in Eugene

Fired Deschutes County sheriff’s captain Scott Beard was conditionally released from the Lane County Jail on Friday, a week after being arrested on federal charges of theft and money-laundering, the U.S. Department of Justice confirmed Sunday.

Beard, whose duties included overseeing Central Oregon Drug Enforcement Team assets, is accused of stealing more than $200,000 from the county and spending much of it on gifts for a former sheriff’s office employee, Krista Mudrick, with whome federal prosecutors allege he was having an affair.

Beard pleaded not guilty to the charges last Monday, and signed a conditional release from jail on Friday. The conditions include that he must avoid contact with Mudrick, not possess any firearm and not drink alcohol to excess. He’s ordered to get mental health counseling, find work or go to school, and can’t leave Oregon without approval. He also agreed to surrender his passport.

Beard, who was arrested Feb. 19 in Bend, entered a not guilty plea to the charges on Monday, according to a report the Eugene Register-Guard.

He was ordered detained without bail pending a psychological evaluation and the removal of weapons from his home.

The newspaper said Beard’s wife and one of their three sons attended the hearing.

Mudrick, who was summoned to court on a single count of giving a false statement to FBI and IRS agents, also pleaded not guilty and was released on her own recognizance. An April 27 trial date was set before U.S. Dsitrict Judge Michael McShane.

Beard was arrested on charges he stole more than $200,000 in taxpayer money and bought his mistress lavish vacations, breast implants, a tummy-tuck and tanning, as well as rent and other gifts.

Beard was indicted on Feb. 17 on five federal charges including theft, money laundering and passport fraud.

According to the Register-Guard, Coffin said Monday he is concerned about Beard’s mental state, citing a suicide attempt by Beard and subsequent hospitalization.

Beard’s attorney, Eric Ward of Bend, told the judge that Beard’s wife stands by her husband. Ward said the family would be with him and had a safety plan in place, suggesting that Beard’s mental health would be better addressed at home.

But Coffin noted a search warrant revealed 30 weapons in Beard’s home, including AR-15 assault rifles, and said he was not comfortable immediately releasing Beard out of concern for community safety.

Beard appeared to tear up, the newspaper reported, and mouthed “I love you” toward his family near the end of the proceedings. It did not appear Beard and Mudrick made eye contact during the hearing.

“It was horrific, it’s appalling, it’s completely unacceptable,” Sheriff Shane Nelson told NewsChannel 21 on the day of Beard’s arrest. “I fired him this afternoon.”

The investigation into Beard began in October, after a county audit discovered missing funds. Beard was put on paid administrate leave until Friday.

He’s accused of stealing more than $200,000 from the Central Oregon Drug Enforcement Team (CODE), a multi-agency resource on the High Desert.

The indictment said he also paid for Krista Mudrick’s rent, household expenses, a Harley Davidson motorcycle, gym membership and concert tickets, among other things.

Mudrick worked for the sheriff’s office, with Beard as one of her supervisors, from February 2011 through March 2013, the indictment states. Nelson said Friday she was let go before the end of her probationary period.

“Beginning at a date unknown to the grand jury, but at least by October 2013, the two commenced a sexual relationship which continued until at least September 2015,” it says.

Mudrick was charged with one count of making false statements.

It was an elaborate scheme to steal the money, according to Nelson. Beard allegedly supported Mudrick by using his power as the CODE team’s money handler to fake and inflate expense requests, then pocketed the cash himself.

“He was very careful in covering his tracks and making sure certain financial statements reflected accurately, so there was some work put into this,” Nelson said.

The indictment says Beard also helped himself to goods seized by the drug team’s asset forfeiture program — items like cash, gems and coins.

“In this particular case, you have a trusted position, where you want a trustworthy person serving as a manager, and he took advantage of that position,” Nelson said.

The sheriff said that after Beard was placed on leave, his department beefed up security practices.

“We added some additional layers of oversight to some of our processes,” Nelson said.

If Beard is found guilty, he could face more than a decade in prison.

Read the full indictment here.

Here’s how the U.S. Department of Justice detailed the allegations in a news release:

The indictment alleges that Scott Raymond Beard, 45, laundered some of the ill-gotten gains by conducting financial transactions to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, also of Bend.

Beard was arrested Friday by FBI and IRS-Criminal Investigations in Bend and is scheduled to make his initial appearance before U.S. Magistrate Judge Thomas Coffin in Eugene on Monday.

Meanwhile, Mudrick was issued a summons requiring her presence at an arraignment in Eugene federal court Monday at 1:30 p.m.

Beard is charged with two counts of theft of funds from a federally funded program, which if convicted, carries a maximum penalty of 10 years in prison; two counts of money laundering, which if convicted, carries a maximum penalty of 10 years in prison; and, one count of passport fraud, which if convicted, carries a maximum penalty of five years in prison.

Mudrick is charged with one count of false statement to federal law enforcement agents, which if convicted, carries a maximum penalty of five years in prison.

The prosecutors said Mudrick told FBI and IRS agents she bought a Harley Davidson motorcycle with proceeds of her business and that she had no romantic relationship with Beard, and that he provided only $600 to her, while Beard is accused of providing her at least $100,000 in cash and money orders, including airfare and hotel expenses for a trip to Amsterdam and South Africa.

“Most men and women in law enforcement dedicate their lives to public service and strive every day to always do the right thing as public servants,” said U.S. Attorney Billy J. Williams. “When an investigation shows that a member of law enforcement is violating the public trust by stealing the people’s money, we will vigorously prosecute and seek justice for such conduct. Public trust in law enforcement is earned, and must be protected through accountability.”

“The public rightly expects that their law enforcement officers live and work by a strong set of core values – honesty, integrity and respect,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “The FBI will always aggressively pursue allegations of public corruption to ensure we maintain the public’s trust in law enforcement.”

“Throughout my career in federal law enforcement, I have gained a great deal of admiration for those that carry the badge and serve our communities and our nation, the vast majority of whom do so with fierce dedication, honor, and respect for the law. We take it personally when one of our own is alleged to have not lived up to the oath they made to uphold the law and the virtue of our profession,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.

This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office. Assistant U.S. Attorney Christopher Cardani is prosecuting the case.

Nelson revealed last fall the investigation of Beard, a 13-year agency veteran who had been the Central Oregon Drug Enforcement Team’s supervisor for about two years, and who was placed on paid administrative leave.

Beard, who was in charge of the detectives division, had responsibilities including approving funding requests by CODE and the sheriff’s office for undercover drug buys and witness expenses. In the past system, the county’s finance office had reviewed Beard’s paperwork, then issued checks payable to Beard, who cashed them and was responsible for delivering that money to CODE or the sheriff’s office, the indictment stated.

The indictment also noted that Beard was responsible for ensuring seized funds went to the county finance department, for a separate bank account pending resolution of the cases.

Read the full indictment here.

“This is a good day for central Oregon law enforcement” said Deschutes County District Attorney John Hummel in a statement..

“The local law enforcement officers I work with are top-notch professionals who well-serve our community. Holding Scott Beard accountable for his misdeeds shows that in our town, bad cops will be rooted out and good cops will be celebrated.”

Billy Williams, the U.S. attorney for the District of Oregon, is handling this prosecution. Hummel said, “I thank U.S. Attorney Williams and his team for the thorough and professional investigation they conducted in this matter. I have full confidence that they will see this case through to a just result.”