Counselor facing Washington felonies still licensed in Idaho

NEWPORT – A Washington man who had his mental health counseling license suspended after being charged in Pend Oreille County with 12 felonies still holds an Idaho license.

Grady C. Hoaglund, 50, had his mental health counselor license suspended by the state Department of Health Feb. 3. He has 20 days to appeal the Washington suspension.

Hoaglund pleaded not guilty to a dozen felony charges in Pend Oreille County Superior Court Sept. 26, 2024. The charges include second-degree rape, second-degree theft, two counts of indecent liberties and seven counts of Medicaid false statements. He is free on his own recognizance.

Trial was initially set for Dec. 2, 2024, but was continued to Aug. 25, 2025, at the request of defense and with agreement by the prosecuting attorney from the state’s Attorney General’s office.

Hoaglund, who was the operator of Aegis Counseling Services in Newport, cannot practice in Washington, according to documents from the state Department of Health. He is still a licensed clinical health counselor in Idaho, with his license valid through September.

According to court documents, Hoaglund is alleged to have had oral sex with a patient in February 2022 during a counseling session, which eventually resulted in the second-degree rape charge. The charges were filed by the state Attorney General’s office, with the concurrence of Pend Oreille County Prosecutor Dolly Hunt.

The patient first came to Newport police in 2022 with a complaint that she had had oral sex with Hoaglund during a therapy session, but the officer didn’t think there was probable cause to charge Hoaglund because the officer believed the act was consensual. The patient came to the police because she feared for the adult daughter of a friend who was being treated by Hoagland, according to sworn court documents. She told the officer in 2022 that she had been treated by Hoaglund for about two and a half years. For about the first two years, she said her contact with him was normal and professional, according to court documents.

During the course of the investigation, the Newport officer discovered that Hoaglund had billed for additional therapy sessions beyond the monthly session the victim had with him.

The complaint was then investigated for Medicaid fraud by an intake officer of the Medicaid Fraud Control Division. The case was forwarded to the state Attorney General’s office. That office is prosecuting all the charges in the case.

The charges all involve the same victim. According to court records, Hoaglund was alleged to have billed Medicaid for sessions that never occurred and submitted documents to the state.

In early 2022, Hoaglund showed the alleged victim pornography and the relationship turned sexual, according to court documents. The alleged victim said she engaged in sexual activities with him on two occasions, in February 2022 and in May 2022. She also said he gave her money on two occasions to help with her children.

In September 2024, Hoaglund was charged in Pend Oreille County Superior Court. A phone call to his attorney was not returned.