RBC | According to a press release issued by the Rio Blanco County Board of Commissioners late Tuesday, Jan. 31, a “significant portion” of the $4 million grant awarded to the Rio Blanco Water Conservancy District last year to facilitate development of the proposed Rio Blanco Water Storage Project, AKA the Wolf Creek Reservoir Project, has been “lost in an apparent wire transfer fraud scam.”
The grant was paid from the County Capital Improvement Trust Fund (CCITF) to the Rio Blanco Water Conservancy District in a one-time lump sum payment last April and the funds were to be segregated from other funds belonging to the District.
As oil shale exploration and development expanded in the late 1970s, the state of Colorado established the Oil Shale Trust Fund to receive federal leasing bonus payments. In 1982, the CCITF was created for the distribution of funding to Rio Blanco, Garfield, Moffat and Mesa counties by percentages. RBC received $20 million in CCITF funding.
While neighboring counties ran through their CCITF funding quickly, RBC invested and established a plan to only use interest on the balance to fund requests from local taxing districts. Since 1982, the principle balance has only been dipped into rarely, most recently for the broadband project. A $6 million payout from the Anvil Points settlement a few years ago helped rebuild the balance, and the total fund balance in 2020 was $24.5 million.
At the time the grant was awarded, citizens voiced concerns about the “one-time exemption” given to the District for the $4 million. The decision was approved by recalled commissioner Gary Moyer, former commissioner Jeff Rector (resigned) and commissioner Ty Gates.
According to the press release, the banks involved and the Federal Bureau of Investigation are investigating the matter. Because it is an active investigation, no further details can be released at this time.
Wire transfer scams occur when a hacker or con artist poses as a trusted authority — such as a bank, a colleague or a family member — and convinces victims to send money via electronic bank transfer. This generally occurs via email. Because of the immediacy of wire transfers, scammers get possession of the funds almost instantly, making it virtually impossible to get the stolen funds back.
This is a developing story.
By Niki Turner | [email protected]
