A former Washington state employee was sentenced to 18 months in federal prison for embezzling nearly $900,000 from the State of Washington. Matthew Randall Ping, 48, of Olympia, pleaded guilty to wire fraud and making a false tax return in June 2025. The sentencing took place at U.S. District Court in Tacoma.
U.S. District Judge Tiffany M. Cartwright addressed Ping’s addiction issues during the hearing: “Your crime was very serious but was driven by severe addiction…. Gambling addiction can destroy the life of someone who is otherwise an upstanding citizen.”
Acting U.S. Attorney Teal Luthy Miller commented on the broader impact of the case: “This theft was not just the largest insider embezzlement from Washington State in the last 15 years, it also undermines trust in our state financial safeguards,” said Acting U.S. Attorney Miller. “Mr. Ping not only cheated state taxpayers, he cheated on his federal taxes as well by failing to pay the income taxes he owed on ill-gotten gain.”
Court documents show that Ping began working at the Washington State Office of Administrative Hearings (OAH) in 2009 and rose to become Management Analyst and credit card custodian by 2017. Between 2019 and 2023, he used his access to OAH credit cards to conduct fraudulent transactions totaling $878,115.
Ping created fake vendor accounts with payment processors that appeared legitimate but were actually controlled by him. From 2019 to 2021, he charged over $330,000 through these accounts; later, he set up another account and stole an additional $530,000 from OAH funds. He also made personal purchases totaling $17,359 using OAH credit cards.
To avoid detection, Ping manipulated transaction records and bypassed oversight procedures meant to catch improper charges. He submitted incomplete lists for review by co-workers and then added unauthorized charges after reviews were completed.
In total, there were 210 fraudulent transactions with phony vendors amounting to a loss of $860,756 for the state agency; combined with improper purchases on his work-issued credit card, losses reached $878,115.
Assistant United States Attorney Dane Westermeyer sought a longer sentence due to how Ping spent stolen money: “He used this stolen taxpayer money to fuel his gambling habit, fund at least six trips to Las Vegas, pay off a luxury vehicle loan, and otherwise support his lifestyle. And, perhaps not surprisingly, he failed to report any of the income from his theft on his federal tax returns which resulted in a tax loss of nearly $250,000,” Westermeyer wrote.
At sentencing Ping acknowledged seeking help for gambling addiction but said resources are limited; Judge Cartwright encouraged him to advocate for better services related to gambling addiction recovery.
The embezzlement came to light through an investigation by the Washington State Auditor’s Office; Ping resigned when confronted in 2023. The resulting tax loss from unreported income between 2020-2023 is calculated at $240,247. Under court orders Ping must pay full restitution—$1,118,362—to cover losses suffered by both government agencies and insurers as well as unpaid taxes.
The FBI and IRS Criminal Investigation division assisted with auditing efforts leading up to prosecution led by Assistant United States Attorney Dane A. Westermeyer.
