Embezzlement trial begins

SANDPOINT — Testimony finally got under way Wednesday in a complex theft case against an Oldtown man accused of manipulating his former employer’s bookkeeping system to line his own pockets.

Jasen W. Johnson’s preliminary hearing for grand theft has been delayed more than a half-dozen times since the allegations against him emerged in 2009. Johnson, a former manager at Family Foods in Oldtown, allegedly skimmed more than $439,000 from the grocery store during a seven-year period.

Johnson, 48, pleaded not guilty to the felony charge.

The state alleges Johnson used phony merchandise returns to pocket cash and adjusted time stamps to conceal his actions.

Store owner Larry Gerow testified that Johnson was a trusted and reliable employee until the alleged scam came to light. The store’s current manager, Gene Scott, told Judge Justin Julian the bogus returns were occurring five or six times a week and only stopped when Johnson was on vacation and later fired.

Much of the testimony on Wednesday focused on the store’s accounting procedures, in addition its software and hardware.

A retail systems technician who investigated the thefts told the court it was initially suspected that there was a programming glitch or that malicious software had somehow infiltrated the system.

The technician, Timothy Sanders, testified that keystroke logs were not corresponding with the returns and it appeared times were being modified through the system’s computer server.

On cross-examination by defense attorney Michael Palmer, Sanders said the system could be accessed from a remote location, but there was no evidence that money was being transferred electronically.

“If they did do it remotely, how would they get the money out?” Sanders testified.

Additional testimony is scheduled for next week.