Ex-city employee pleads not guilty
August 26, 2004
A former South Lake Tahoe city planner pleaded not guilty to nine felony counts as her attorney continues to wait for boxes of undisclosed paperwork from the FBI and other authorities.
Mary Kay McLanahan is charged with three counts each of embezzlement by a public officer, public officer crime and grand theft during the time frame of January 1991 and November 1999.
She pleaded not guilty on all counts during an arraignment Thursday at El Dorado County Superior Court.
Judge Jerald Lasarow calculated McLanahan faces a maximum of six years in state prison.
Prosecutors believe McLanahan used her position to sell three building rights obtained by the city that were then put on the open market. The rights allowed property owners to build residences without a long wait during a time of tight construction controls.
One person used a right to build a house. The other two, tied to private land in Douglas County, were also used for redevelopment purposes by the city.
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A trial-setting hearing was scheduled for Nov. 5. The period gives defense attorney C. David Eyster time to receive and pore over at least two boxes of documents related to the case.
The boxes are in the possession of the FBI in its Sacramento office.
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