Molalla City Councilor Rae Lynn Botsford.

Rae Lynn Botsford was taken into custody on 24 charges May 13

After nearly 10 months of investigation, Molalla City Councilor Rae Lynn Botsford was arrested the morning of May 13 for alleged financial irregularities as part of the Molalla River Middle School Parent Action Committee.

Given her role within the city’s government, and potential conflict of interest, the Molalla Police Department asked the Canby Police Department to take the lead on investigating the alleged financial crimes committed by Botsford.

After the Canby Police concluded its investigation, which indicated about $20,000 in missing funds, a Clackamas County grand jury indicted Botsford on multiple felony charges, and a warrant was issued for her arrest, which was executed Tuesday morning.

She was transported to Clackamas County Jail on multiple charges. The Canby Police Department said that the investigation is ongoing.

Molalla Mayor Scott Keyser took to Facebook in a video before noon on Tuesday to make a statement on the matter.

“The city council has no role in this process and won’t take any official action related to this matter while the criminal process plays out,” he said, noting that once that process is done, the council will assess what comes next.

He also noted that there was no evidence of a misuse of city funds.

“In my opinion, as mayor, I believe that Councilor Botsford should resign,” he said. “And I will ask my fellow councilors to join me in suggesting that she resign. We have important work to do for this community and this may be a distraction.”

Later Tuesday, Molalla School District Superintendent Tony Mann sent a press message to parents in the district.

The letter said, in part, “I have some unfortunate news to share. The Molalla River Middle School Parent Action Committee, one of our parent groups, has allegedly been the victim of embezzlement by the former PAC Treasurer. The volunteer served on the PAC from 2018-2024, serving the three years as secretary and then treasurer for three years, from 2021 through 2024. In July of 2024, the newly elected PAC treasurer discovered discrepancies in the financial records. The PAC leadership made a police report. The investigation recently concluded, and criminal charges have been made. The person involved is not a current Parent Action Committee board member or volunteer.

All the Parent Action Committee funds earned since this time are accounted for and safe. No taxpayer dollars were involved in this unfortunate situation. Parent groups are independent non-profit organizations who elect their own officers and establish their procedures. Schools are vastly better from the work these groups do. Student’s experiences are enriched and staff have a support system for items that the District budget does not cover. Your support is vital for these groups, and I thank you for it.”

The Parent Action Committee shared a release that read in part, “Although the discovery of discrepancies in the financial records and the subsequent filing of criminal charges are disappointing: the Parent Action Committee has fulfilled all requests for funding in every year that any of the current volunteer board members have served as officers. As a board, all our officers faced this challenge by informing our principal, the superintendent and local law enforcement upon discovering the discrepancies in the financial records available to us. We have put into place procedures to provide internal controls and cash handling practices to prevent any loss of assets in the future.As parents ourselves, we want to thank the families and community members who generously donate supplies, money or time — and thank you for your donations to and participation in our activities. We empathize with our supporters who are learning that the group was a victim of theft of some of their donations. All funds received from July 2024 forward were and continue to be properly banked and recorded.”