The city of Kingman is suing its former auditor for negligence, alleging the firm should have caught warning signs when a former city employee allegedly stole about $1.1 million.
Heinfeld Meech & Co., P.C. oversaw Kingman’s finances for years when Diane Richards had access to city money. In 2015, authorities accused Richards of stealing about $1.1 million to pay for personal bills and cash advances from Nevada casinos.
The lawsuit filed in Mohave County Superior Court names both Richards and Heinfeld Meech & Co., P.C. as defendants. It demands they refund fees the city paid to the firm, cover the cost of attorneys, return $1.1 million and pay other damages to be determined at trial.
A separate criminal case against Richards is ongoing.