The former leader of the National Association for the Advancement of Colored People chapter in Spokane, Washington, was charged on Tuesday for theft by welfare fraud and false identity verification in applying for public assistance.
The investigation started in March 2017 when a state investigator received information that she had written a book.
Investigators learned Diallo said she was receiving public assistance and that she reported she was making less than $500 a month.
A subpoena for her self-employment records, which included copies of her bank statements, showed Diallo had deposited almost $84,000 into her bank account between August 2015 and September 2017, without reporting it to the Department of Social and Health Services. Investigators believe the money came from her book, speaking engagements and selling art, soaps and handmade dolls.
"The state of Washington seeks prosecution and restitution in this matter".
She will be arraigned on the charges on June 6. Aside from a one-time payment of $20,000, however, Dolezal hadn't reported a "change of circumstance" to the department.
She has said previously that she grew up near Troy, Montana, with religious parents and that she began to change her perspective as a teenager after her parents adopted four black children. "I was wondering whether your dad was really an African-American man", a reporter asked Ms. Dolezal, who looked perplexed and flustered.
She was outed as pretending to be African American after her carefully constructed image was shattered during an interview in 2015 when she was asked a single question: "Are you an African American?"
Rachel Dolezal in the documentary "The Rachel Divide". According to a statement from Netflix, she was not paid for the project. In addition, the Department requests Nkechi Diallo (formerly Dolezal) be disqualified from receiving Food Assistance for at least a 12-month period for breaking a Food Assistance rule on goal.
If found guilty, Dolezal could face up to 15 years in prison.