Federal charges may be filed in embezzlement case

SANDPOINT — A civil suit accusing a Bonner County couple of raiding the finances of a nonprofit humanitarian group for personal gain is expected to evolve into a federal criminal matter, according to attorneys on both sides of the case.

As a result, a trial in The Luke Commission’s lawsuit against April and Jeff Matthews is on hold. The civil proceeding was tentatively planned for next month in 1st District Court.

“This matter has been under investigation by federal authorities, and the parties expect federal charges to be filed by August of 2009,” D. Toby McLaughlin, The Luke Commission’s attorney, said in a request for the civil trial to be postponed.

If the couple plead guilty or are convicted in the criminal proceeding, the civil case could be an unnecessary duplication of effort, McLaughlin said in the request. The Matthews’ defense counsel, Stephen Smith, agreed to the continuance, court records show.

Federal charges against the couple are still pending. Cases against the couple have yet to turn up in Idaho’s U.S. District Court.

The lawsuit accuses the Matthews of embezzling funds from the commission and its founders’ real estate development company, JLZ Enterprises. April Matthews was hired in 2007 to perform bookkeeping services for the two companies.

Plaintiffs Harry and Echo VanderWal allege April Matthews embezzled tens of thousands of dollars and opened lines of consumer credit using the names of company officials. The suit alleges the misconduct occurred when the VanderWals were operating medical clinics in the southeastern African kingdom of Swaziland.

The Matthews are fighting the allegations. They deny embezzling any funds or committing fraud.

“April Matthews attempted in good faith to apply the plaintiffs’ monies to the payment of the plaintiffs’ business expenses,” Smith said in an answer to the civil complaint.