Tahnya Hyung Shafer Sentenced to 33 Months for Wire Fraud After Stealing Over $1 Million From Spokane Industries, Which Is Now in Chapter 11

Tahnya Hyung Shafer, a former human resources manager at Spokane Industries, was sentenced this week in federal court in Idaho to 33 months in prison for wire fraud. She was also ordered to repay $1,040,126.27 to the company. Spokane Industries, LLC is a separate story with its own court: it has been in Chapter 11 bankruptcy in Washington since January 23, 2026.

This is a criminal case and a corporate bankruptcy. It is not a class action, and it is not a consumer settlement. Here is what the record shows, which federal laws apply, and what it means for employees, vendors and customers of Spokane Industries.

Quick Facts: Tahnya Shafer Sentence and Spokane Industries Chapter 11

Detail	Verified information
Defendant	Tahnya Hyung Shafer, 48, of Coeur d’Alene, Idaho
Former employer	Spokane Industries, LLC, a Spokane Valley, Washington foundry
Offense	Wire fraud (18 U.S.C. § 1343); guilty plea entered March 2026
Sentence	33 months in federal prison
Supervised release	3 years after release
Restitution	$1,040,126.27 payable to Spokane Industries
Sentencing judge	Chief U.S. District Judge Amanda K. Brailsford, District of Idaho
Sentencing announced	October 7, 2026, by the U.S. Attorney’s Office for the District of Idaho
Maximum penalty for wire fraud	Up to 20 years in prison
Spokane Industries bankruptcy	Chapter 11, U.S. Bankruptcy Court, Eastern District of Washington, Case No. 26-00116
Bankruptcy petition date	January 23, 2026
Bankruptcy judge	Frederick P. Corbit
Debtor’s counsel	Bush Kornfeld LLP
Reported assets and liabilities	About $9.9 million in assets; about $19.9 million in liabilities
General claims deadline	April 3, 2026 (passed)
Government claims deadline	July 22, 2026 (passed)
Consumer claim form	None

What Did Tahnya Shafer Do at Spokane Industries?

Shafer started at Spokane Industries in late 2022 as a human resources manager. According to the U.S. Attorney’s Office and reporting on the case, her duties grew to cover employee benefits, payroll and accounts payable. That last role let her log into the company’s online bank accounts and pay vendors.

Prosecutors said that between 2023 and 2025 she used that access in three ways:

1. She inflated her own paychecks through the payroll system.
2. She created fictional employees and collected the paychecks issued to them.
3. She redirected vendor payments so money that looked like it was going to legitimate suppliers landed in bank accounts she controlled.

The government’s announcement attributed at least $774,386 to the two payroll schemes and at least $265,740 to the vendor-payment scheme. Added together, that is $1,040,126, which matches the restitution order.

Court records show the “vast majority” of the money went to casinos in North Idaho, primarily the Coeur d’Alene Casino. Reporting on the hearing says her defense counsel described her as an admitted gambling addict and tied the addiction to mental health issues.

One detail stands out. While the company was losing money, Shafer repeatedly told the owners it was short on cash and could not make payroll. The owners put their own money into the business so employees, Shafer included, kept getting paid.

What Federal Law Did Tahnya Shafer Plead Guilty To?

Shafer pleaded guilty in March 2026 to wire fraud under 18 U.S.C. § 1343. The statute covers anyone who devises a scheme to defraud, or to obtain money by false pretenses, and uses interstate wire communications to carry it out. Electronic bank transfers and online payroll or payment instructions fit that description.

The penalties that apply to a wire fraud conviction like Shafer’s include:

• Prison: up to 20 years.
• Fine: up to $250,000 for an individual felony under 18 U.S.C. § 3571, or more where the statute allows a fine tied to the gain or loss.
• Supervised release: up to three years for a felony of this class under 18 U.S.C. § 3583.
• Restitution: mandatory in this kind of case, as explained below.

Judge Brailsford imposed 33 months, well below the 20-year maximum. The sentencing announcement does not explain how the court arrived at that number. Federal judges weigh the factors in 18 U.S.C. § 3553(a) and consult the U.S. Sentencing Guidelines, where the amount of loss is a major driver for fraud offenses (U.S.S.G. § 2B1.1). Without the sentencing transcript or the court’s statement of reasons, any explanation of why 33 months was chosen would be a guess.

Related article: Bria and Zane Davey of McCurtain County, Oklahoma, Accused of Embezzling Over $3.27 Million From McCurtain Cinema and Gasquatch in Idabel

How Does the $1,040,126.27 Restitution Order Against Tahnya Shafer Work?

Restitution in federal fraud cases is governed mainly by two statutes.

• Mandatory Victims Restitution Act, 18 U.S.C. § 3663A. For fraud and other offenses against property where an identifiable victim suffered a financial loss, the court must order restitution in the full amount of that loss. Spokane Industries is the identified victim here.
• 18 U.S.C. § 3664. This sets the procedure, including how the court sets a payment schedule based on the defendant’s financial resources.

Two points matter for readers:

• An order is not a payment. Restitution establishes what Shafer owes. It does not guarantee Spokane Industries will collect all of it, or collect it quickly.
• The government can enforce it for a long time. Under 18 U.S.C. § 3613, a restitution order can be enforced in much the same way as a tax debt, and the liability generally lasts 20 years from entry of judgment or release from prison, whichever is later.

Because the money is owed to a company now in bankruptcy, how any collected funds are handled will depend on the court orders in both cases. Recoveries by a debtor in possession are generally treated as part of the bankruptcy estate, but that is a question for the bankruptcy court, and nothing in the record resolves it.

Why Is Spokane Industries, LLC in Chapter 11 Bankruptcy?

Spokane Industries filed a voluntary Chapter 11 petition on January 23, 2026, in the U.S. Bankruptcy Court for the Eastern District of Washington, Case No. 26-00116. The case is assigned to Judge Frederick P. Corbit, and Bush Kornfeld LLP represents the company.

The company is a foundry that casts metal wear parts, mainly for the mining and aggregate industries. It was founded in 1952, employs about 100 people, and is owned by Patrick and Lisa Turner.

Court filings and local business reporting list several causes, not one:

• Equipment problems
• Rising material costs
• A structural collapse at the facility in August 2025 that halted production for roughly five weeks
• More than $1 million in employee embezzlement

Spokane Industries reported about $9.9 million in assets and $19.9 million in liabilities, and about 200 vendors held unpaid claims as the cash shortage deepened. The theft was a serious blow, but the filings do not support calling it the only reason the company filed.

Chapter 11 of the Bankruptcy Code lets a business keep operating while it works out a plan to repay creditors. Under 11 U.S.C. §§ 1107 and 1108, the company continues to run its operations as a “debtor in possession.” Under 11 U.S.C. § 362, the filing triggers an automatic stay that generally stops creditors from collecting prepetition debts outside the bankruptcy case.

What Are the Claim Deadlines in the Spokane Industries Chapter 11 Case?

The court docket for Case No. 26-00116 lists two key deadlines for filing proofs of claim:

• April 3, 2026 for non-governmental creditors
• July 22, 2026 for governmental units

Both dates have passed. Here is what that means for different people:

• Creditors listed on the company’s schedules. Under 11 U.S.C. § 1111(a), a claim that the debtor scheduled as undisputed, not contingent and not unliquidated is treated as filed. These creditors may not have needed to file anything, but they should check how the debtor listed their claim.
• Creditors who were not scheduled, or whose claims were scheduled as disputed. Under Federal Rule of Bankruptcy Procedure 3003(c)(2), a creditor in that position who misses the bar date is generally not treated as a creditor for voting and distribution purposes in the Chapter 11 case. A creditor in that position should speak with a bankruptcy attorney and look at the docket for any later order that affects its rights.
• Postpetition claims. Ordinary administrative expenses that arose after January 23, 2026 follow different rules than prepetition claims.

Neither the bar dates nor the criminal restitution order gives members of the public a right to a payment.

Can Spokane Industries Employees Make a Wage Claim?

Employees who believe they are owed pay or benefits from before the filing should look at their rights under 11 U.S.C. § 507(a)(4). That section gives priority status to unpaid wages, salaries and commissions earned within 180 days before the petition date, up to a statutory cap per person. For cases filed on or after April 1, 2025, the cap is $17,150.

Priority status matters because, under 11 U.S.C. § 1129(a)(9), a Chapter 11 plan generally has to pay priority claims in full to be confirmed. It does not mean a claim is automatically allowed. The employee still has to be scheduled or file a timely claim, and the amount has to be correct.

The government’s account says the owners used personal funds to keep payroll going during the theft. That alone does not show that any particular employee is owed anything. Employees with a real dispute should keep their pay stubs, benefit statements and written communications, and check the docket or consult an employment or bankruptcy attorney.

What Does the Case Mean for Spokane Industries Customers and the General Public?

Very little in terms of money. The sentencing announcement did not describe any product recall, consumer settlement or compensation fund. There is no claim form, no opt-out process and no objection deadline because this is not a class action.

A customer with a specific financial claim, such as a deposit paid for goods not delivered, should keep the contract and invoices and check how the bankruptcy treats that claim. Everyone else has no claim to file.

How Can You Check the Spokane Industries Bankruptcy Docket?

1. Confirm the debtor. The case is In re Spokane Industries, LLC, Case No. 26-00116, U.S. Bankruptcy Court, Eastern District of Washington.
2. Search PACER. The court’s docket lists the claims register, schedules, monthly operating reports, any plan of reorganization and any disclosure statement. Some filings require a PACER account.
3. Read the deadlines. Check the claims deadlines above and any later orders.
4. Contact the right office. Questions about the case can go to the debtor’s counsel at Bush Kornfeld LLP or to the U.S. Trustee’s Office.
5. Look at the criminal side separately. The District of Idaho docket holds the indictment, plea agreement and judgment. The U.S. Attorney’s Office Financial Litigation Unit handles restitution enforcement.

If you are following other Chapter 11 cases, our guide True Food Kitchen Bankruptcy, 12 Closures, 34 Restaurants Open and What Customers Need to Know explains how a business reorganization differs from a shutdown or a consumer settlement.

Key Dates in the Tahnya Shafer Case and Spokane Industries Chapter 11

Date	Event
Late 2022	Shafer begins work at Spokane Industries as HR manager
2023 to 2025	Period of the payroll and vendor-payment schemes described by prosecutors
August 2025	Structural collapse halts production for about five weeks
January 23, 2026	Spokane Industries files Chapter 11, Case No. 26-00116
February 27, 2026	Section 341 meeting of creditors on the bankruptcy docket
March 2026	Shafer pleads guilty to wire fraud
April 3, 2026	General claims deadline (passed)
July 22, 2026	Government claims deadline (passed)
October 7, 2026	Sentence announced: 33 months, 3 years supervised release, $1,040,126.27 restitution

Frequently Asked Questions About Tahnya Shafer and the Spokane Industries Bankruptcy

Who is Tahnya Hyung Shafer?

Tahnya Hyung Shafer, 48, of Coeur d’Alene, Idaho, is a former human resources manager at Spokane Industries. She pleaded guilty in March 2026 to wire fraud and was sentenced in October 2026.

How many months did Tahnya Shafer get in federal prison?

She was sentenced to 33 months in federal prison, followed by three years of supervised release.

How much must Tahnya Shafer repay Spokane Industries?

$1,040,126.27 in restitution, ordered under the federal restitution statutes.

What is the maximum sentence for wire fraud under 18 U.S.C. § 1343?

Up to 20 years in federal prison. Shafer received 33 months.

Did Tahnya Shafer’s theft cause the Spokane Industries bankruptcy?

It contributed. The company’s filings and local reporting also cite equipment failures, rising material costs and an August 2025 structural collapse. The record does not support calling the theft the sole cause.

What is the Spokane Industries bankruptcy case number?

In re Spokane Industries, LLC, Case No. 26-00116, filed January 23, 2026, in the U.S. Bankruptcy Court for the Eastern District of Washington.

Can I still file a claim in the Spokane Industries Chapter 11 case?

The general deadline was April 3, 2026 and the governmental deadline was July 22, 2026. Both have passed. A creditor who missed them should check how the company scheduled its claim and speak with a bankruptcy attorney.

Can the public claim money from Tahnya Shafer’s restitution order?

No. The restitution is payable to Spokane Industries. The criminal case created no claims program for customers or the general public.

Is the Spokane Industries case a class action?

No. It is a federal criminal prosecution plus a separate corporate Chapter 11 reorganization.

What is Tahnya Shafer’s criminal case number?

The public sentencing announcement does not state it. It can be found by searching the District of Idaho docket on PACER under her name.

Sources and Verification Notes

1. U.S. Attorney’s Office, District of Idaho, “North Idaho Woman Sentenced to 33 Months in Prison for Wire Fraud After Stealing Over One Million Dollars from Former Employer,” October 7, 2026: https://www.justice.gov/usao-id/pr/north-idaho-woman-sentenced-33-months-prison-wire-fraud-after-stealing-over-one-million
2. Coeur d’Alene Press, “Cd’A woman imprisoned for stealing $1M from employer,” October 8, 2026.
3. Spokane Journal of Business, “Valley foundry files Chapter 11,” February 26, 2026.
4. U.S. Bankruptcy Court, Eastern District of Washington, In re Spokane Industries, LLC, Case No. 26-00116 (docket summary showing judge, counsel, filing date and claims deadlines): https://www.waeb.uscourts.gov/
5. Statutes cited: 18 U.S.C. §§ 1343, 3553(a), 3571, 3583, 3613, 3663A, 3664; 11 U.S.C. §§ 362, 507(a)(4), 1107, 1108, 1111(a), 1129(a)(9); Fed. R. Bankr. P. 3003(c); U.S.S.G. § 2B1.1.

Verification limitation: The criminal docket number and the current status of the Chapter 11 plan were not confirmed from primary docket materials.

Disclaimer: This article is general information, not legal advice. Restitution and bankruptcy claims depend on court orders and the facts of each claim.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the Coeur d’Alene Press report, the Spokane Journal report and the U.S. Bankruptcy Court docket for Case No. 26-00116, as of October 10, 2026. Last Updated: October 10, 2026.

Researched and written by Israr Ahmad, Legal Content Researcher | Last Updated: October 10, 2026