Rachel Dolezal, the former NAACP leader who pretended to be black before being unmasked as white, has reached a settlement in a welfare fraud case brought by the state of Washington.

An attorney for Dolezal, who legally changed her name to Nkechi Diallo in 2016, confirmed that she accepted a diversion agreement on March 25, under which she will pay undisclosed restitution and complete 120 hours of community service.

The onetime president of the NAACP's Spokane chapter was charged with theft by welfare fraud, perjury and false verification for public assistance.

Court documents alleged that she illegally received $8,747 in food assistance and $100 in child care assistance from August 2015 through November 2017.

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Rachel Dolezal, the former NAACP leader who pretended to be black for years before being unmasked as white, has reached a settlement in a Washington state welfare fraud case. Dolezal (above in June 2018) was accused last year of illegally receiving nearly $9,000 in government aid between August 2015 and November 2017

An investigation was launched in March 2017 when a state official received information that Dolezal had written her autobiography, In Full Color: Finding My Place in a Black and White World.

A criminal investigator with the Department of Social and Health Services reviewed Dolezal's records and found she had been reporting that her sole source of income was $300 per month in gifts from friends.

An investigation was launched in March 2017 when a state investigator was notified about Dolezal's autobiography (above)

Her scheme unraveled when investigators learned that a typical contract with her book's publisher would include payments of $10,000 and $20,000 as advances against later royalties.

They also found Dolezal had obtained a business license under multiple trade names which she was using to promote the sale of In Full Color as well as her art, soaps and handmade dolls.

Documents say she the fraudster deposited some $84,000 into her bank account without reporting it.

The 41-year-old reportedly told investigators she 'fully disclosed her information' and declined to answer further questions.

After confirming Dolezal's settlement on Friday, attorney Bevin Maxey told KXLY: 'I think it's a fair and equitable resolution of the matter.

'I don't believe she tried to obtain benefits that she wasn't entitled to. Needless to say, she's been through a lot. I believe this is the appropriate way to solve it.

She added: 'I think she's anxious to move beyond this and move forward with a productive life. She's a very intelligent and creative woman.'

In June 2015, Dolezal's parents revealed to the media that she was born white but had been presenting herself as a black activist in Spokane. The former civil rights activist and African studies instructor has not been able to find regular employment since the bombshell reveal

Dolezal sparked nationwide outrage in 2015 when her parents revealed she had been posing as a black woman for years.

The former civil rights activist and African studies instructor has not been able to find regular employment since the bombshell reveal.

She claimed in a BBC interview last year that ethnicity is not biological and compared being 'transracial' to being transgender.

She then released her book, titled In Full Color, and people said she was using her 'white privilege' to make her arguments.

In Dolezal's memoir, she likened being forced to do household chores as a child to indentured servitude and noted that she developed a 'similar resourcefulness' to that which slaves were forced to develop so she could complete her chores.

She claimed that the mere act of forcing kids to do household chores was similar to 'the institution of chattel slavery in America'.

Dolezal also wrote about how her first marriage ended because she was 'too black' for her African-American husband.

She detailed how she evolved over the years from being a blonde white girl with freckles into her current state of 'Blackness'.

Dolezal also chronicled what she said are the myriad of ways that being 'outed' as a white woman while she was passing as a black woman has impacted her life.

The imposter came under fire once again in March after Netflix released the first trailer of her documentary.

The streaming giant was criticized for spending money to promote someone who is 'fraudulent and problematic'.

Her teenage son Franklin, who is biracial, is featured in the trailer where he implores his mother to stop publicizing her beliefs.

'I resent some of her choices and I resent some of the words she has spoken in interviews,' Franklin said during the documentary's trailer.

Netflix also submitted her documentary, The Rachel Divide, to the Tribeca Film Festival, which took place in April.