POLSON - The investigation surrounding a Charlo woman accused of embezzling more than half a million dollars from a Polson credit union has apparently moved on to the federal level.

"Any incident involving a lending institution is investigated by the FBI," Lake County Undersheriff Jay Doyle said. "We may be the initial responding agents but the investigation is typically done by the FBI."

Kathleen Gratton Sammons, 52, is currently charged in Lake County with theft of property by embezzlement, a felony. Sammons, a vice president at the Polson branch of the Whitefish Credit Union, disappeared the morning of June 24 while on a work-related errand. An audit of the bank later that day found the institution's vault short more than $600,000. Deputy county attorney Cory Allen eventually quashed an arrest warrant issued June 25 ordering Sammons held on $500,000 bail after reports that she had contacted federal authorities through her attorney.

FBI spokeswoman Debbie Bertram cannot confirm or deny an FBI investigation at this time.

The pending county felony charge against her may be dismissed as well, according to Lake County attorney Mitch Young. He said the county might dismiss the case without prejudice, meaning the office could re-file charges later if the federal case falls through. It appears, though, that Sammons is cooperating with federal authorities, Young said.

"We could continue to prosecute but there doesn't seem to be any real point," he said. "The feds have more resources. If they prosecute it first, we would be prohibited, but if we charge it first, they can charge as well."

In addition to her alleged crime involving a federally insured financial institution, court records indicate Sammons crossed state lines after fleeing Lake County the morning of June 24. The affidavit indicates Sammons cell phone was used in Prairie City, Ore. the next morning, some 550 miles from Polson.

Both Lake County Sheriff's Office Detectives and Polson police detectives initially investigated the case, which began as a missing person report.

"We had no idea how she came to disappear," LCSO Det. Dan Yonkin said. "The Sheriff's Office was there for the missing person aspect. We wanted to know where's Kathie and is she OK because her car was found in the county. Alan Booth [of PPD] investigated the credit union aspect."

According to the criminal affidavit, Whitefish Credit Union officials told Polson police detectives that Sammons was recently told she needed to reduce the amount of cash in her vault. Records indicated she had more than enough money, but had requested even more funds from the federal repository. Her request was initially denied, but she tried again and received a reduced amount of money. The request triggered an audit of the bank's Polson branch. Auditors found the vault short more than $600,000 during their visit June 24, the same day Sammons was reported missing.

Sammons allegedly contacted her friend, Bob Congdon, before taking off. Court papers say Congdon told law enforcement officials Sammons visited his home the morning of June 24 and said she was in trouble at work as an auditor was set to visit the bank "as they spoke." Before she left his home, Sammons told Congdon she planned to leave town with a friend.

Her 2007 Chevy Suburban was found three miles east of Pablo in the Snyder Hill Road area the afternoon of June 24. Inside the locked vehicle law enforcement recovered Sammons' purse with 11 credit cards inside but no cash or driver's license. Court papers indicate that Sammons is known to carry around large amounts of cash.

Her husband, Steve, reported that Kathleen "was very restless" June 23, the affidavit states, and had been acting nervously as of late.

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