Former Freeborn County Commissioner Linda Tuttle — already facing 13 charges in Minnesota for allegedly diverting money from her title company for personal use — was charged in federal court in St. Paul Monday with one count of wire fraud.

Her lawyer said a plea deal has been secured.

Tuttle, 60, is accused of stealing about $1 million from escrow accounts of her company, Albert Lea Abstract Co., from January through June of 2010.

According to federal court documents, the U.S. Attorney’s Office is alleging that Tuttle “devised and executed a scheme to defraud and to obtain money by means of false and fraudulent pretenses,” ultimately by converting money from escrow accounts to other bank accounts, and then using the money for personal gain.

Court documents state she did this by a means called check kiting. Records state she counted on “float time to produce artificial balances in order to temporarily cover the check.” She reportedly stole $920,000 through this method.

Defense attorney Kevin O’Connor Green of Mankato said he has worked out a plea agreement with the federal government and has worked out an agreement with state prosecutors. He said he’s “trying to resolve this as best we can for my client and for the people who have been harmed.”

The charge of wire fraud, specifically, comes from an alleged transaction in connection to a real estate closing.

Court documents allege on June 11, 2008, almost $797,000 was wired to Albert Lea Abstract’s trust account at Home Federal Savings Bank in Albert Lea from AmericanWest Bank/Far West Bank in Price, Utah.

A portion of the wire, about $199,000, was to be held in escrow, but Tuttle allegedly instead transferred the funds from the trust account for her personal benefit.

The documents state as a result of the alleged offense, Tuttle is to forfeit to the United States any property which has derived from the proceeds of the alleged violation.

If any of this property is unavailable for forfeiture, the federal court intends to seek the forfeiture of “substitute property.”

The case is being prosecuted by Assistant U.S. Attorney Nancy E. Brasel.

According to a news release from the U.S. Attorney’s Office, Tuttle faces a maximum penalty of 20 years in prison for her charge of wire fraud.

Her sentence will be determined by a federal district court judge.

State charges

Albert Lea Police Chief Dwaine Winkels said he thinks if Tuttle is prosecuted in federal court and is found guilty of that charge, then her state charges could likely be dropped.

It will be up to the Steele County attorney, who is prosecuting the case for Freeborn County, to decide whether to do so, Winkels said.

In Freeborn County District Court, Tuttle faces 12 felony counts of theft by swindle and one count of racketeering. She has not entered a plea on these charges.

Tuttle remains free on bond.

Look to www.AlbertLeaTribune.com for more as this story develops.