Kane Living Center manager accused of diverting $50K in taxpayer money into bogus payroll account

A trusted Allegheny County manager at one of the Kane Living Centers is accused of diverting tens of thousands of dollars in taxpayer money into a bogus payroll account for her own personal use. 

County police accuse human resource manager Heather Dietz of diverting close to $50,000 in taxpayer money into a bogus payroll account and cashing checks for herself. She now faces charges of forgery, theft by deception, receiving stolen property, fraud and identity theft. 

According to this criminal complaint, Dietz's niece had worked as a paid intern at Kane for two months in the summer of 2023 but hadn't worked there since August of that year. Still, records show the county continued to pay into the niece's payroll account until Dietz's arrest last week.  

Investigators determined the checks were sent to the Glen Hazel Living Center and intercepted by Dietz, who then deposited the money in a federal credit union account bearing her and her niece's name. 

Police say Dietz intercepted $76,000 in gross earnings and deposited more than $48,000 in net pay into the joint account for her personal use. The niece is listed as Jane Doe and victim in the affidavit, apparently unaware of the scheme. 

The county-run Kane Living Centers provide skilled nursing and assisted living to mostly lower-income, older residents.   

Police and county officials have no comment on the arrest outside of the criminal complaint.  Sources indicate the investigation is continuing to determine if the alleged fraud is wider and whether anyone else is involved.  

Dietz was released on her own recognizance but faces a preliminary hearing next week on all of these charges.