Nkechi Diallo, formerly Rachel Dolezal appears in court for welfare fraud

SPOKANE, Wash. - Nkechi Diallo, formerly Rachel Dolezal appeared in court on Wednesday facing charges of felony Theft by Welfare Fraud, Perjury and False Verification for Public Assistance. 

Diallo, was the former president of Spokane's NAACP, and member of the Police Accountability Committee, who rose to international infamy for admitting she lied about her race. 

According to court documents, the state says Diallo stole $8,847.00 from them, broken down into $8,747 for food assistance illegally received and $100 for childcare assistance. 

The state says they overpaid Diallo over a two year period, 2015 to 2017, when she had claimed only $300 of monthly income. 

But investigators from the Department of Social and Health Services, Office of Fraud and Accountability found in that time frame she had been also promoting her book, "In Full Color" and had also been selling art, soap and dolls. According to court documents, Diallo didn't claim income from those enterprises.

Bank records indicated that while she was receiving state assistance, Diallo had deposited $83,924.96 into her bank accounts.

Diallo pleaded not guilty to both charges on Wednesday. She must book herself into jail on July 2, for fingerprinting and photographs, but will then be released.

The state has ordered her to remain in Spokane County as part of her release conditions. 

Her trial is set for September. 

KXLY reached out the DSHS to put the alleged fraud into perspective. Officials there say they average case they prosecute is around $10,000, so Diallo's is just below average.

In 2017 they recovered $2.5 million statewide from welfare fraud cases. 

Be the first to know with the KXLY news app. Breaking news alerts, watch live newscasts and get the most up-to-date local news on the go.  Click here to download for iOS and Android.