A former bookkeeper for a Greenbank-area water company will be going to court this week to defend herself against a charge she embezzled more than $41,000 from water customers.

Last week, Island County Prosecutor Greg Banks charged Cheryl Caveness, 45, with seven counts of first-degree theft and 32 counts of second-degree theft in connection with the case, which affects the 125 members and 57 customers of Holmes Harbor Water Co. She is to be arraigned Friday in Island County Superior Court.

Under investigation since Jan. 30, 2001, the case came only slowly to the attention of the prosecutor’s office. Banks’ office did not receive any paperwork on Caveness’ alleged crimes until last April and did not have enough evidence in hand to file charges in superior court until early this year.

The Island County Sheriff’s Office began investigating the case after Suzanne Zettle, the current bookkeeper for Holmes Harbor Water Co. and Greenbank Beach and Boat Club, lodged a complaint with the agency. According to a certification of probable cause submitted to the Island County court, Zettle and her husband, Gary, confronted Caveness after discovering that she had signed water company checks over to her bank account exceeding her agreed-upon wage with the water utility and the private beach club. She also allegedly wrote a number of checks on the two company’s accounts to her husband, Warren, and to pay personal expenses.

At the time, according to court documents, Caveness admitted to being heavily involved in Internet gambling and having a number of large personal expenses and medical expenses. She later declared bankruptcy, a move the water company challenged.

Kent Dale, an Oak Harbor attorney representing the water company in the bankruptcy, said he successfully intervened in the case and got Caveness to admit she owes the water company money.

Dale said the board that manages the water company tried to work with Caveness out of court to get her to pay back the money she allegedly stole. When that didn’t work, they went to the sheriff’s office.

“They concluded, in fact, there was a problem,” he said.

Caveness’ admission of indebtedness to the water company and beach club will only help the county prosecutor’s case. Banks said it is almost as good as an admission of guilt.

The prosecutor’s office alleges that Caveness’ thefts, which ranged between $219 and about $4,600, took place over a 13 month period in 2000 and 2001. The alleged thefts totaling more than $1,500 were charged as first degree, while the smaller amounts brought second-degree theft charges.

The water company has no relationship with the Holmes Harbor Sewer District, which got into trouble with state auditors earlier this year after they discovered the districts commissioners had sold $20 million in illegal municipal bonds.