Deputy chief is investigated in missing cash, guns, drugs

During the years when he was commander of the Investigations Division at the Lynnwood Police Department and oversaw property seized from criminal suspects, Paul Watkins had evidence officers turn over as much as $90,000 in seized cash directly to him, according to a federal search warrant.

Watkins, 50, of Everett, indicated to the Police Department's evidence officers that he would release the money to its rightful owners, the search warrant says.

But no receipts were ever signed over to him, and the FBI is now investigating whether Watkins pocketed the money he was supposed to return, according to the warrant signed by FBI Special Agent Edward Quintana Jr.

Watkins' name and the reason behind an FBI investigation into the police official were contained in the search warrant filed Oct. 19 in U.S. District Court in Seattle and made public Thursday.

Watkins is now deputy chief of the department.

According to the search warrant, the FBI was asked by Lynnwood police to investigate Watkins after an internal audit showed that cash released to him between 2001 and 2005 could not be accounted for. In one instance, according to the search warrant, Watkins allegedly signed for a package that contained more than $14,000 in cash, two handguns and 2 grams of cocaine from the Snohomish County Prosecutor's Office.

The cash, drugs and handguns were seized by police during a 1996 drug bust.

The package was never signed into the evidence room at the Lynnwood Police Department and efforts to find it have been fruitless, the warrant says.

According to the search warrant, Watkins said he recalled bringing the package of cash, handguns and cocaine from the prosecutor's office to the evidence room at the department, but said he failed to log it in properly.

Watkins, who is on paid administrative leave from the department, could not be reached for comment Thursday.

No criminal charges have been filed, although the case is being presented to a federal grand jury in Seattle, according to a federal law-enforcement official. The Police Department referred all inquiries to the FBI. As part of the investigation, the FBI has searched Watkins' Everett home, his office at the department and his financial records, according to the warrant.

The alleged thefts involve money that was either booked into evidence or held on behalf of inmates who were taken to jail but never reclaimed it because they were sent to prison or for other reasons, the source said.

Police sometimes seize possessions and cash that are believed to be so-called fruits of a crime. That property is then used as evidence, and a court later determines what becomes of it.

In some cases, all or a portion of the property and cash is returned to the person from whom police seized it.

The search warrant also details six separate instances between 2001 and 2005 in which Watkins allegedly kept seized cash that he was supposed to return to its owners.

The search warrant also says that Watkins and his wife have filed for bankruptcy four times in recent years and that on several occasions Watkins made cash deposits to his bank account on the same days that he claimed to have returned seized funds.

Christine Clarridge: 206-464-8983 or cclarridge@seattletimes.com