CHEYENNE, Wyo. — Dena Lynn Hansen, former general manager of the South Cheyenne Water and Sewer District, or SCWSD, is accused of embezzling approximately $350,000 from the district over nearly a decade, according to an affidavit of probable cause filed by the Laramie County Sheriff’s Department.
On Oct. 23, Hansen, 55, appeared in Laramie Circuit Court, where her bond was set at $5,000 cash, which she posted that day. A preliminary hearing is scheduled for Nov. 1.
The affidavit, prepared by Detective Sergeant Ryan Martinez, outlines extensive findings from a forensic audit conducted by Jacobson and Associates, a firm retained by SCWSD after Hansen’s financial handling raised concerns.
After 30 years with the district, Hansen was placed on administrative leave in April, and SCWSD formally terminated her on May 2 following the audit’s discoveries.
The SCWSD is Wyoming’s largest water and sewer special district, serving around 10,000 residents, according to the district website. Bordered by Interstate 80, Walterscheid Boulevard, High Plains Road and North College Drive, SCWSD relies on the Cheyenne Board of Public Utilities for water supply and sewer treatment. The district is governed by a five-member board of directors, with members elected by residents to four-year terms. Cap City News has reached out to the district and its attorney for comment but has not received a response as of publishing.
According to the affidavit, suspicions began in early 2024 when Hansen’s management of deposits came under scrutiny. Martinez’s investigation, informed by records provided by Pinnacle Bank, indicates that Hansen allegedly altered deposit slips by whiting out figures to reduce the reported cash totals. On multiple occasions, the actual amounts deposited into SCWSD accounts did not match initial deposit slip records, with discrepancies sometimes exceeding $1,000.
Audit unveils systematic redirection of funds
In addition to the altered deposit slips, the affidavit describes how Hansen reportedly retained checks and cash payments from customers, sometimes for several days before depositing them, which delayed check clearances. This led to repeated customer inquiries at SCWSD about unprocessed payments. Some SCWSD employees noted that Hansen occasionally took deposit money home, claiming to keep it in a safe overnight rather than in the office.
The forensic audit by Jacobson and Associates revealed that Hansen allegedly deposited significant cash amounts from SCWSD into her personal bank accounts between 2017 and 2024, totaling approximately $242,000. The affidavit explains that this was corroborated by records from Hansen’s bank, U.S. Bank, and suggests these amounts aligned closely with the cash shortfalls at SCWSD.
Development fees, permits allegedly mismanaged
Hansen is also accused of improperly managing funds collected through development and permit fees, which she handled independently from the main customer billing system.
The affidavit suggests she sometimes instructed customers to write multiple smaller checks for individual fees rather than a single check, allowing for greater control over how funds were processed.
Detective Sergeant Martinez notes in the affidavit that SCWSD employees found Hansen’s opposition to an online payment system unusual, given its potential to streamline bill payments. However, with all transactions remaining cash- and check-based until 2021, Hansen allegedly had significant latitude in overseeing payment flows.
Hansen’s financial records reveal potential motive
As the investigation deepened, Martinez obtained search warrants to review financial records from banks linked to Hansen and her husband. The records revealed numerous cash deposits corresponding with the years when funds were reportedly missing from SCWSD.
The affidavit mentions that Hansen also managed financial accounts for Laramie County Fire District #1, where she regularly deposited her earnings alongside her SCWSD income. Cap City News has reached out for comment from the district but has not received a response as of publishing.
U.S. Bank statements show regular deposits covering routine expenses, including mortgage payments and credit card bills, with few savings retained month-to-month. The affidavit further notes Hansen frequently carried high balances on her credit cards, adding pressure on her personal finances.
In a formal interview on Oct. 7, Hansen reportedly denied knowledge of the missing SCWSD funds and stated she did not handle cash or alter deposit slips. However, according to Martinez’s account in the affidavit, when pressed on specific cash deposits into her accounts, Hansen offered minimal responses.
If convicted, Hansen faces one count of felony theft over $1,000. Under Wyoming law, this charge carries a potential penalty of up to 10 years in prison, a fine of up to $10,000 or both. Cap City News will continue to investigate this case as it progresses.
