Alleged theft of more than $1.1-million from the city of Kingman by a former budget analyst now involves civil litigation. The City of Kingman and its Arizona Municipal Risk Retention Pool have sued the city’s former auditing firm, Heinfeld, Meech & Co.

The suit filed in Mohave County that is lodged with Presiding Judge Charles Gurtler alleges that the auditing firm was negligent and breached its contract for failing to detect internal embezzlement over an eight year period. The suit seeks reimbursement for loss of the city funds.

A 23-count criminal indictment alleges that former budget analyst Diane Richards misused credit cards and city finances to pay her gambling debts and personal expenses. Richards’ next pre-trial hearing is scheduled March 20.

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