Former Lucky Diamond casino manager accused of embezzling nearly $400K

Former Lucky Diamond casino manager accused of embezzling nearly $400K
By MARK BOATMAN for the Missoulian


A former manager of Lucky Diamond casinos in Missoula and Billings has been accused of embezzling more than $383,000.

Scott Peterson allegedly used casino funds to repay personal financial obligations and attempted to cover his tracks by altering accounting records, according to court records filed in Missoula County Justice Court.

Peterson is charged with three counts of felony theft by embezzlement, one count of felony deceptive practices and one count of felony evidence tampering.

Peterson, who court records claim confessed to the embezzlement, is scheduled to make an initial appearance in Justice Court on June 28.

Each count carries a maximum sentence of 10 years in prison and a $50,000 fine.

Peterson allegedly committed the crimes between January 2006 and July 2010, and most occurred in Missoula County.

According to an affidavit filed by prosecutors in Justice Court, here's how the case unfolded:

Peterson was hired in 2006 to manage Lucky Diamond casinos in Missoula, Billings and Billings Heights. As manager, he wrote checks, made bank deposits, paid bills and made data entries in the accounting system.

Casino owners noticed discrepancies in their financial records sometime during late 2009 or early 2010. A fraud examiner conducted a financial audit and concluded Peterson used business checks and credit cards to pay for personal expenses. Peterson also allegedly took cash from casino vaults and issued IOUs that were never repaid.

A review of the financial audit by Montana Gambling Investigation Bureau agent Tim Theisen indicated Peterson also altered entries on the casino's accounting system sometime during July 2010.

The loss was finally totaled at more than $383,000.

Peterson was eventually confronted by casino management and admitted to embezzling from the business.

In an interview in April with Theisen, Peterson admitted to embezzling money from the casino and falsifying accounting records to conceal his criminal activity.

Peterson has made partial repayment of $64,000, but he also apparently bounced a check intended to repay some of the IOUs he'd previously written.