Christopher Stamey files suit against Skagit Transit

BURLINGTON, Wash. — Skagit Transit’s former chief financial officer is suing the agency and its CEO, alleging he was wrongfully terminated after reporting financial misconduct — including the alleged forgery of his signature on more than half a million dollars’ worth of transactions.

According to documents obtained from the Washington State Auditor, CEO Crystle Stidham used CFO Christopher Stamey’s signature stamp to approve $554,971 in spending while he was on administrative leave in July 2023. Stamey later reported the incident as a potential loss of public funds and was fired that November. He claims in his lawsuit that his dismissal was retaliation.

In a January 2024 report, the state auditor found that Skagit Transit “did not have adequate internal controls to ensure disbursements were accurate, supported, and allowable.” Although the falsified signature was not tied to missing funds, the agency received a formal management letter citing other irregularities, including undocumented travel reimbursements and $26,000 in employee recognition expenses — despite having no policy for such spending.

Stamey’s lawsuit alleges that CEO Stidham misused agency funds for first-class travel, hotel suites, and personal purchases on a Skagit Transit credit card, and that she spent five figures on a custom-built desk. None of those claims were confirmed by the auditor.

Skagit Transit declined to answer specific questions about the audit findings. In a call with KING 5, Stidham said all issues raised by the auditor had been investigated but declined to provide documentation, citing legal advice. A public records request filed June 27 remains unanswered.

Stidham, who was appointed CEO by March 2023, denied authorizing the questionable expenses but suggested they occurred before her tenure.

“Defendant Crystle Stidham had started working as Skagit Transit’s Chief Executive Officer by no later than March 2023,” Stamey’s attorney Jay Free wrote in a statement to KING 5. “She was in that position thereafter, including in July 2023 when Mr. Stamey’s signature was fraudulently used.”

Correspondence from the auditor’s office emphasized that whistleblower complaints at local agencies are typically handled internally. Stamey claims his warnings to the agency were ignored, and that he was placed on leave and given a termination letter just hours after he emailed board members about financial concerns on Oct. 27, 2023.

Skagit Transit’s executive board includes Skagit County Commissioners Peter Browning and Lisa Janicki. Their office declined to comment on the audit or lawsuit.

Stamey was officially terminated Nov. 1. In February, the board voted to increase Stidham’s salary to $226,068, according to the Skagit Valley Herald.