The purpose of this blog is to show why reform is needed regarding Non Profit entities here in Alaska.
There has been a proliferation of non profits across the country. Alaska is no exception.
Our State laws and regulations regarding non profits are very lax.
Many non profits receive government funds - both federal and State funds. Some take in hundreds of millions of gov't funds each year.
And yet, non profit entities are not required to share very much information with the general public. They do not have to abide by the open meetings laws or share meeting minutes. They are not subject to public records requests. They don't have to share very much financial information - just the last three years of tax return which don't give much detailed information.
Non Profits are like black boxes. They want the public's money but they don't have to explain exactly how it is used (beyond the broad categories of information on their tax returns.)
This is a recipe for disaster. We need more transparency and oversight of non profit organizations.
How can the public evaluate whether or not to donate to a non profit if we have no true idea how funds are spent?
How can the US Gov't or State Gov't or local governments evaluate whether non profits entities are doing a good job and/or truly need more gov't money unless their books are open?
Reform is needed so that all non profits are required to make public exactly how they spend their funds. They should be subject to FOIA requests. Their board meetings should be open to the public. Anyone should be able to review their financial records.
Sunlight goes a long way to stop abuse, fraud, and corruption.
Saturday, September 16, 2017
Friday, September 15, 2017
Embezzlement/Theft case (Fairbanks Library Association)
http://www.newsminer.com/news/local_news/ex-library-employee-in-fairbanks-accused-of-stealing-k-from/article_5334293c-5a43-11e7-8dd6-37e18f64723c.html
Fairbanks Daily News Miner - June 25, 2017
Fairbanks Daily News Miner - June 25, 2017
FAIRBANKS — A former Noel Wien Library employee allegedly stole more than $10,000 in donations intended for the Fairbanks Library Foundation.
Court summons were issued last week for Virginia Marie Sabol, 64, a former library purchasing clerk. She’s accused of taking money from library foundation fundraisers between January 2014 and September 2016. The money came from foundation fundraisers such as T-shirt sales, the golden library card program and a program that lets donors put their names on the book-shaped tiles in the lobby.
The Fairbanks Library Foundation is a nonprofit organization that raises money for special library projects such as artwork in the library, cellphone booths and reading programs.
In 2014, an especially big fundraising year, the foundation contributed $100,000 to help build the new North Pole library.
Sabol had worked for the library since 1983. Her employment with the borough ended in January. She is charged with second-degree felony theft.
Borough staff reported a suspected theft this winter, according to the criminal complaint against Sabol.
A borough employee reported financial irregularities while filling in for Sabol, who’d been out on sick leave since September. Some of the money that had been paid for Library Foundation fundraisers hadn’t been deposited in the foundation’s account.
After the borough conducted an audit, borough human resources director Sallie Stuvek confronted Sabol about the discrepancy. Sabol admitted she had some of the library foundation deposits at her home, and she returned $2,307, according to the case against her.
Stuvek said in a Daily News-Miner interview this week $9,774 of foundation deposits remains missing.
“That wasn’t a borough account because the foundation is a nonprofit. That was a failure of the internal control process. This would have been caught a lot sooner had it been (a borough account),” Stuvek said “It’s an unfortunate circumstance. It isn’t reflective of how most normal borough employees handle their responsibilities.”
The borough plans to seek restitution from Sabol, Stuvek said.
This year’s alleged theft was unprecedented in the foundations 40-year history, foundation president Kathy Alton said. The borough has reimbursed the foundation all the money that was supposed to have been given to the foundation.
Because of the case, the foundation has changed its practices so the library employees aren’t handling cash on behalf of the foundation. The foundation plans to formalize its relationship with the borough through a memorandum of agreement. The foundation is also considering phasing out its gold library cards, which let donors check out materials for longer at the library than ordinary library cards. People with lifetime gold cards will still be able to use theirs.
Court summons were sent for Sabol on June 19. Her first court date has not been set.
Contact Outdoors Editor Sam Friedman at 459-7545. Follow him on Twitter: @FDNMoutdoors.
Embezzlement/Theft (Chugiak Mustang Hockey Association)
http://www.alaskastar.com/2017-06-26/woman-charged-stealing-180000-mustang-hockey-association#.Wbx4EciGOUk
A 33-year-old woman has been arrested for allegedly stealing roughly $180,000 from the Mustang Hockey Association.
According to an Anchorage Police Department online Nixle alert issued Monday, June 26, volunteer treasurer Jennifer Suchan, 33, was caught making unauthorized withdrawals from the Chugiak-Eagle River nonprofit youth hockey organization. Suchan (who until recently went by the name Jennifer Kerr) is accused of stealing the money over a 22-month period from August, 2015 until the money was discovered missing by MHA board president Joey Merrick on June 19.
Following an investigation by APD, Suchan was arrested Monday on charges of first-degree theft and scheme to defraud. She was taken to the Anchorage Jail and later released on bond, according to an online database.
Merrick said he became aware of irregularities in the association’s finances when he checked its account online June 19.
“After about 10 minutes I noticed there were some serious problems,” he said.
After discovering the apparent theft, Merrick said he immediately contacted police and the association’s bank; soon after, detectives launched an investigation and the bank accounts were frozen.
Merrick said he and the board had no prior reason to suspect anything was amiss. The apparent theft, he said, left him “shocked.”
“I’ve been sick to my stomach for a week,” he said Monday night, several hours after news of the arrest was made public by APD.
In a statement about the arrest issued Monday night, the association said it was “dismayed” by Suchan’s actions.
“It is deeply disappointing for a close-knit community such as Eagle River to experience such fraud and deceit by one of our own,” reads the statement. “MHA vows to remain a premium hockey program dedicated to developing young players both on and off the ice. Our amazing group of coaches, volunteers, parents and players will demonstrate our resiliency by moving forward despite the current situation. Additional quality controls have been instituted to assure confidence in our future fiscal oversight.”
According to the association’s website, the Mustang Hockey Association offers both house (recreational) and competitive hockey programs for kids ranging from 4 to 18 years of age. The association was formed in 1983 in advance of the opening of the new Fire Lake Recreational Center (since renamed the Harry McDonald Center) in Eagle River. The league’s first full season was during the winter of 1984-85, the first year the McDonald Center was in operation.
“The goal of this league is to teach basic skills and develop each player to his/her maximum potential,” reads a mission statement on the website.
According to the site, the group’s board held its most recent monthly meeting June 14 in Eagle River. As of Monday night, no minutes had been posted from that meeting.
However, the website does include minutes from the May 5, 2016 meeting at the McDonald Center in Eagle River that provide a window into its finances.
According to those documents, a treasurer’s report filed by Jenn Kerr (according to police spokeswoman Renee Oistad, Suchan and Kerr are the same person. “She got married recently,” Oistad said Monday night) stated the association had approximately $155,000 in the bank at that time.
“(W)e started the year with about 149,000 dollars and ended the year with about 155,000,” read the minutes.
Merrick said the association spends hundreds of thousands of dollars annually. Ice time alone, he said, costs in the neighborhood of $250,000 per year.
“Hockey’s an extremely expensive sport,” he said.
He said the theft appeared to have taken place for much of Suchan’s roughly three-year tenure as treasurer.
“It was over a long period of time, it wasn’t something that came out overnight,” he said.
He said the association will be able to weather the current storm, and vowed the theft won’t impact MHA’s on-ice operations.
“We’re going to continue to move forward as an organization,” he said.
Merrick said he’s been working closely with police since the funds were discovered missing, and has contacted accounting firms for advice on how to better handle the association’s finances. In the coming weeks and months, he said, the association will continue to closely examine its policies and procedures.
“There’s lots of things we’re going to look into and we’re going to discuss,” he said.
He said the association will seek “full restitution” for the amount allegedly stolen by Suchan, who could not be reached for comment.
On Monday evening, Jennifer Kerr was still listed as the MHA treasurer. A photo of her remained active on the site, but an email sent to the address associated with the group’s treasurer bounced back as undeliverable. By Tuesday, her photo had been removed from the page, with TBD listed as the group’s treasurer.
Merrick said he hopes the incident doesn’t reflect badly on “one heck of a group” of volunteers who keep the association running.
“One bad apple’s not going to spoil all the good things that we’ve done to create hockey players and to help create great members of this community,” he said.
Contact Matt Tunseth at editor@alaskastar.com.
Embezzlement/Theft case (Anchorage - 28 Assets, Inc.)
Anchorage bookkeeper embezzles $90K from nonprofit
Author: Jerzy Shedlock
Updated: September 27, 2016
Published June 13, 2013
An Anchorage bookkeeper who worked for a nonprofit that provides support to people with disabilities has been charged with multiple felony counts after embezzling more than $90,000.
Ruby M. Brooks stole $93,603 from multiple accounts belonging to 28 Assets, Inc. clients, according to an Anchorage Police Department press release. She allegedly purchased an Old Navy credit card with the money and used the money to fund a Las Vegas vacation.
In late April, an Assets, Inc. representative filed a report with the police department about a suspected employee theft of an unknown sum of money from multiple client accounts. A detective looked into the thefts and determined Brooks was the culprit. The 35 year old allegedly had been running the scheme since late 2011.
Assets, Inc. employs more than 400 employees; 42 percent are disabled. Their workplaces include Providence Hospital and the Alaska Court System.
Susan Newsome, the Assets employee, reported the thefts to Anchorage Police only a day after discovering that a business was not receiving compensation from one of the accounts Brooks was charged with managing. The nonprofit handles 29 bank accounts for clients who require care.
When confronted, Brooks told Newsome she had engaged in "gross mismanagement of funds." Brooks went as far as writing and signing three pages in which she admitted to stealing the money for the last year to "cover expenses" -- and that she knew it was illegal, according to an affidavit. The confession was handed off to a detective.
Her expenses allegedly kept her from paying one client's rent for four months, the affidavit says. Assets, Inc. also received a letter from a separate condo association lawyer stating that a client was $2,200 behind on condo dues.
An investigation and audit of a client's financial records revealed Brooks withdrew funds to cover personal expenses. It turned out she did so with multiple accounts. In an attempt to conceal the thefts, she took more money from alternative accounts to cover the previously withdrawn funds, according to Anchorage Police.
On more than one occasion, Brooks obtained credit cards using clients' names; she would use one of the cards as another way to cover funds removed from the dwindling accounts, according to Anchorage Police. Brooks' indictment alleges she purchased an Old Navy credit card with a client's name and charged items with the card. Newsome told investigators her company had received a credit card bill for another client totaling $672. She described the client as "high functioning," and decided to give him a call; he said he did not have a credit card.
Following investigators' original tally of about $53,000, officers went to speak with Brooks; they wanted to know why she had stolen the money. She was short on funds, she told the detectives. She thought she could replenish the money, she continued, but it got to a point where she "just kept doing it," the affidavit says. And eventually, Brooks said she lost track of what accounts she took money from.
Further investigation revealed the sum was closer to $90,000.
Brooks credited her expenses to family medical expenses, the affidavit says. But she also admitted to a Las Vegas trip during which she accessed clients' accounts when money was low. She paid for the trip with her dividend, she said.
For her alleged embezzlement, Brooks faces nine felonies and two misdemeanors. The felonies include first-degree theft, scheme to defraud and first-degree criminal impersonation, among other charges, according to court records.
Embezzlement/Theft case (Tatitlek Native Village)
Department of Justice
U.S. Attorney’s Office
District of Alaska
FOR IMMEDIATE RELEASE
Tuesday, January 7, 2014
Former President of Tatitlek Native Village Sentenced to 18 Months for Misapplication of Tribal Funds
Lori “Sue” Clum (formerly Johnson), 46, of Anchorage, Alaska, was sentenced today by United States District Court Judge Sharon L. Gleason, to 18 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Clum was elected as President of the Native Village of Tatitlek, a federally recognized tribe, in October 2007. Clum was voted out of office in April 2008 but refused to accept the results of this election and maintained control of the tribal bank accounts for another year, during which time she misapplied $112,000 of tribal funds for her personal benefit. Clum used the money to gamble, pay personal debts, and purchase a four wheeler among other things. Clum finally relinquished control of the tribal bank accounts after she was arrested for illegal drug possession in March 2009.
In a separate but related matter, Clum confessed judgment in a civil case brought by the Native Village of Tatitlek for a total of $150,000 that she misapplied, which amount included disputed payroll for Clum. Clum was arrested on January 13, 2013, on state charges that she was selling drugs and alcohol in Tatitlek. These charges are still pending.
At sentencing, Judge Gleason noted the importance of deterring this type of conduct in remote communities with fragile economies where fraud like this has an enormous impact, as well as the emotional impact on a small community.
Clum’s brother, James Kramer of Valdez, Alaska, is scheduled for sentencing on January 22, 2014, for his role in accepting $20,000 from Clum. Kramer accepted the money knowing he was not entitled to it, and he failed to file a tax return to include this money as well as other income he had received in 2009.
Ms. Loeffler commends the FBI, IRS Criminal Investigations, and EPA Office of Inspector General, with assistance from the Valdez Police Department, for the investigation of this case.
Embezzlement/Theft Case (Alaska Inter-Tribal Council)
Department of Justice
U.S. Attorney’s Office
District of Alaska
FOR IMMEDIATE RELEASE
Friday, October 23, 2015
Former Finance Director Of Alaska Inter-Tribal Council Sentenced In Federal Court For Theft Of Funds
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Finance Director of the Alaska Inter-Tribal Council (“AITC”), a non-profit organization which advocates in support of tribal governments throughout Alaska, was sentenced in federal court in Anchorage to five years of probation, with a requirement that he serve 120 days of community confinement, for his theft of funds belonging to the organization. Thomas R. Purcell, 52, of Anchorage, who served as the Finance Director of AITC from January 2008 until February 2009, admitted to stealing or misappropriating approximately $22,270 in AITC funds while he served in that capacity. Purcell was also ordered to pay $22,270 to AITC in restitution, and was fined an additional $15,000 by United States District Judge Sharon L. Gleason.
According to Assistant U.S. Attorney Joseph Bottini, AITC received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency of in excess of a million dollars. As the Finance Director, Purcell was responsible for managing all of AITC=s financial accounts, including account reconciliation, and payroll operations. The investigation established that Purcell was able to steal the funds through an unauthorized salary increase.
Purcell was indicted by a federal grand jury in August 2013 together with co-defendant Steven Osborne, the former Executive Director of AITC. Purcell pled guilty in April 2015 to one count of Theft from an Organization Receiving Federal Funds. Osborne also pled guilty to one count of stealing approximately $145,000 from AITC, and on October 22, 2015, he was sentenced to 21 months in prison by United States District Judge Sharon L. Gleason. Purcell, who had cooperated with the government during the investigation and subsequent prosecution, received a reduced sentence in recognition of his cooperation.
Two individuals associated with AITC addressed the court at Purcell’s sentencing and noted that as a result of the thefts committed by Osborne and Purcell, AITC became ineligible for further federal funding because the organization was considered “high risk”. Without federal funding, AITC was basically rendered a defunct organization, and it remains so today.
Ms. Loeffler commends the U.S. Environmental Protection Agency, Office of Inspector General and the Federal Bureau of Investigation for the investigation of this case.
Embezzlement/Theft Case (Healy Lake Tribe)
Department of Justice
U.S. Attorney’s Office
District of Alaska
FOR IMMEDIATE RELEASE
Friday, February 5, 2016
Former Healy Lake Tribe First Chief And Tribal Administrator Sentenced For Conversion Of Federal Government And Tribal Fund
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Fairbanks woman was sentenced on Friday, February 5, 2016, in federal court in Fairbanks after being found guilty of converting federal government and tribal funds to her own use.
JoAnn Polston, 60, of Fairbanks, Alaska, was sentenced by U.S. District Judge Ralph R. Beistline to three years’ probation with special conditions including 90 days home confinement and cooperation with representatives of the Healy Lake Tribe concerning whereabouts and disposition of tribal funds, and payment of restitution of $4,577.61 to the Bureau of Indian Affairs and $102,860.20 to the Healy Lake Tribe. Polston had pled guilty in September 2015.
Assistant U.S. Attorney Yvonne Lamoureux, who prosecuted the case, noted that according to filings with the court, between 2009 and 2012, Polston knowingly converted to her own use money belonging to the Bureau of Indian Affairs and the Healy Lake Tribe. Specifically, Polston, as the First Chief and Tribal Administrator for the Healy Lake Tribe, abused her position of trust to write herself checks and transfer money from the Tribe’s bank accounts to her personal bank account. Polston also submitted and received per diem payments from the BIA in the amount of $4,577.61 to which she was not entitled because Polston had previously paid herself per diem payments from the Healy Lake Tribe’s bank accounts for the same trips. Between August 2009 and May 2012, Polston knowingly converted the Tribe’s money to her own use by writing herself checks and transferring money into her account in the amount of at least $10,914.20. Between May 2009 and June 2013, Polston also paid herself $91,946.00 without backup documentation, above and beyond her salary payments or other authorized payments.
In sentencing Polston, Judge Beistline noted that misuse of federal funds jeopardizes other native and rural communities that receive federal funds.
“The results of this prosecution reflect the Department of Interior Office of Inspector General’s commitment to pursue fraud involving the Department’s programs and its commitment to its trust responsibility to Native Americans,” said U.S. Department of the Interior Office of Inspector General Special Agent in Charge David House. “Public corruption in Native American communities is especially egregious because it usually comes at the expense of vital tribal programs intended for the benefit of the entire tribal community.”
Ms. Loeffler commends the Federal Bureau of Investigation and the Department of the Interior Office of Inspector General for conducting the investigation leading to the successful prosecution of Polston.
Embezzlement/Theft Case (Alaska Railroad Workers' Union)
Department of Justice
U.S. Attorney’s Office
District of Alaska
FOR IMMEDIATE RELEASE
Tuesday, July 11, 2017
Former President of Alaska Railroad Workers Union Sentenced for Embezzlement of Union Funds
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that the former President of the Alaska Railroad Workers Union was sentenced in federal court in Anchorage today to serve one year and a day in federal prison for embezzling approximately $92,000 in union funds.
Jeffrey W. Davies, 43, of Wasilla, served as the President of the union between 2006 and 2014. According to Assistant U.S. Attorney Joseph Bottini, Davies began embezzling union money in 2011 and continued to steal or misapply union funds for his personal benefit until 2014 when the embezzlement was discovered. Following an investigation by the Federal Bureau of Investigation, it was determined that Davies had embezzled over $90,000 of union money in a three-year period of time. Davies was charged last year with felony embezzlement, and plead guilty in May of last year to stealing the funds.
In sentencing Davies to just over a year in federal prison, U.S. District Judge Sharon L. Gleason rejected Davies’ request that he be sentenced to a term of probation, noting that the embezzlement had taken place over a long period of time, and that Davies had grossly abused his position of trust with his fellow union members. Judge Gleason also ordered Davies to pay restitution to the Alaska Railroad Workers Union in the amount of $92,766.00, and directed that he pay a first installment of $3,000.00 of that amount by the end of this week, with payments of $1,500.00 per month thereafter. Following service of his jail sentence, Davies will be on supervised release for a period of three years and his compliance with paying the ordered restitution will be monitored by the United States Probation Office in Anchorage.
Mr. Schroder commends the Federal Bureau of Investigation for the investigation of this case, and also commends the assistance provided by the present management of the Alaska Railroad Worker’s Union.
Embezzlement/Theft Case (Native Village of Savoonga)
Department of Justice
U.S. Attorney’s Office
District of Alaska
FOR IMMEDIATE RELEASE
Thursday, September 14, 2017
Sisters Sentenced for Embezzlement from Indian Tribal Government
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Sylvia Toolie, 60, and her sister, Peggy Akeya, 57, of Savoonga, Alaska, were sentenced by Chief U.S. District Judge Timothy M. Burgess for embezzling funds from the Native Village of Savoonga (“Native Village of Savoonga” or “the Tribe”), which is located on St. Lawrence Island.
Toolie was sentenced yesterday to serve eight months in prison, followed by three years of supervised release. Akeya was sentenced on Tuesday, Sept. 12, to a term of five years’ probation, three months’ home confinement, and 120 hours of community service. Toolie and Akeya were ordered to pay restitution to the Native Village of Savoonga in the amounts of $69,563.07 and $14,855.81, respectively. Judge Burgess also ordered Akeya to record statements for a public service announcement to raise awareness of the consequences that follow from embezzling tribal government or other public funds.
Between April 2011 and May 2012, Toolie and Akeya stole from the Tribe using their positions of trust to do so. Toolie was a full-time salaried employee of Kawerak, Inc. (“Kawerak”) who was assigned to serve as the Native Village of Savoonga’s tribal coordinator. (Kawerak is a regional non-profit corporation that provides services to tribes in the Bering Straits region.) In her position, Toolie handled the day-to-day operations of the Tribe’s office and other duties, including grant reporting and managing accounts receivable, accounts payable, and payroll. She was also entrusted with ensuring that funds provided to the Tribe were used and accounted for properly. Absent Kawerak’s prior approval, Toolie was not permitted to be paid by the Tribe at all. Toolie nevertheless used her position of trust to obtain numerous unauthorized checks from the Tribe. In all, Toolie tried to fraudulently obtain roughly $83,000 of the Tribe’s funds, and actually pocketed $69,563.07.
Akeya used her position as Secretary and unofficial bookkeeper to sign numerous unauthorized checks to herself and others that were drawn on the Tribe’s bank accounts. Akeya tried to fraudulently obtain over $25,000 in funds, and actually obtained $14,655.96.
By approximately mid-November 2011, the Tribe had run out of money despite receiving considerable federal funding in 2011. When a large check that the Tribe issued was returned for insufficient funds, that creditor made inquiries, which ultimately led to the underlying investigation and proof that the Tribe’s funds had been misappropriated for years by Toolie, Akeya, and others. For example, the investigation revealed that the funds that Toolie and Akeya embezzled were supposed to pay for, among other things, repairs to homes and public buildings in Savoonga damaged during a severe December 2010 winter storm that prompted the State of Alaska to issue a disaster declaration. Due to the suspicious payments and the Tribe’s inability to account for millions of dollars in federal funding, the Department of the Interior, Bureau of Indian Affairs (BIA) has withheld funding from the Native Village of Savoonga since fiscal year 2012.
In sentencing Toolie, Judge Burgess underscored the “exponential impact” that these crimes had on Savoonga, and he was sentencing Toolie to serve eight months in prison in part to send a clear message that stealing tribal or public funds will be met with “significant [and] serious consequences that include going to jail.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Housing and Urban Development, Office of Inspector General (HUD OIG).
Embezzlement/Theft case (Skagway Traditional Council)
https://www.justice.gov/usao-ak/pr/oregon-woman-charged-embezzling-approximately-300000-tribal-organization-alaska
Department of Justice
U.S. Attorney’s Office
District of Alaska
FOR IMMEDIATE RELEASE
Thursday, May 18, 2017
Oregon Woman Charged with Embezzling Approximately $300,000 from a Tribal Organization in Alaska
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Oregon woman has been charged with four counts of embezzlement.
Delia Commander, 63, of Oregon, is charged in a four-count indictment with embezzling approximately $300,000 from the Skagway Traditional Council, which is a federally recognized tribal organization.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case against Delia Commander to the grand jury, from at least 2010 to 2014, the defendant embezzled approximately $300,000 from the Skagway Traditional Council. During that time, Commander was the Tribal Administrator. Commander embezzled the money by using the tribal credit card to make unauthorized cash advances at casinos and other locations, and by making unauthorized purchases with tribal funds. The purchases included paying for personal travel, online university courses, personal vehicle maintenance, and personal shopping, among other things.
The law provides for a maximum sentence of 10 years in prison and a $250,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Department of Interior Office of Inspector General, assisted by the FBI, conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.
Alaskans Standing Together Super PAC
https://sunlightfoundation.com/2010/10/13/alaskans-standing-together/
CONTRACTOR SUPER PAC ALASKANS STANDING TOGETHER BACKS MURKOWSKI
Alaskans Standing Together, a Super PAC that takes unlimited contributions from any source, raised $805,000 in contributions from nine federal contractors, all of them Alaska Native corporations, and is spending its money—$595,000 so far—to support the state's incumbent Sen. Lisa Murkowski.
Murkowski, known for bringing back federal money to Alaska, lost the Republican primary to Joe Miller and is waging a write-in campaign to retain her seat.
In a press release by NANA Regional Corporation, one of the donors to Alaskans Standing Together, the company acknowledges her record of "securing funding for [. . .] infrastructure improvements" and committment to resource development, such as oil and gas—major factors for economic stability of Native Americans in Alaska.
Alaskans Standing Together appears to be the only Super PAC–groups that file with Federal Election Commission declaring their intention, allowed by the Supreme Court in the Citizens United ruling, to make only independent expenditures while raising funds in unlimited amounts–to raise money exclusively from corporations. It is impossible to say whether other groups do the same, since many of them are not required to disclose their donors. Alaskans Standing Together filed with the FEC on Sept. 23, 2010, and raised its money in a five day period starting on Sept. 25.
The group is running ads that explicitly attack Miller for his position on bringing federal dollars to Alaska.
See some of the federal contracts awarded to the nine companies, from TransparencyData.com.
http://www.mcclatchydc.com/news/politics-government/article24597367.html
Alaska's Miller files complaint against Native PAC
OCTOBER 21, 2010 6:35 AM
WASHINGTON — Calling Sen. Lisa Murkowski "bought and paid for" by a political committee made up of Alaska Native corporations, Republican Senate candidate Joe Miller on Wednesday filed a complaint with the Federal Election Committee.
Miller on Wednesday accused nine of the Native regional corporations that make up Alaskans Standing Together and two of its officers of violating federal laws that bar federal contractors from contributing to any political party, committee or candidate for federal office.
The committee, which is independent from Murkowski but supports her write-in bid, has pumped $1 million so far into Murkowski's race. It's proving to be one of the first tests of new campaign finance rules in the wake of the Citizens United U.S. Supreme Court decision, which allows unlimited donations from corporations and unions to certain types of political committees.
Alaskans Standing Together said Wednesday that it was "more confident than ever" it had followed the law, and called the complaint "a desperate move" on Miller's part "to salvage an imploding campaign."
"Joe Miller likes to wrap himself in the U.S. Constitution while trampling on it at the same time," said Will Anderson, the committee's chairman. "First his bodyguards handcuff a reporter for asking questions at a public event. Now he is trying to handcuff the Alaska Native community from having a voice in this campaign while he brings in hundreds of thousands of dollars from groups outside Alaska."
Anderson pointed to a 1998 FEC advisory opinion that found it was acceptable for a parent corporation with subsidiaries that are federal contractors to make donations to a political action committee if it has other sources of revenue than the subsidiaries. That and the findings of the Citizens United case give his group a solid legal foundation, Anderson said.
Campaign finance experts are divided on whether the donations are allowable.
It's "uncharted water," said Ken Gross, former associate general counsel of the FEC. That's in part because the Citizens United case didn't address the question of federal contractors.
But because the corporations contributing to Alaskans Standing Together are not government contractors themselves, the federal prohibition on government contractor contributions might not apply, said Tara Malloy of the Campaign Legal Center.
It's now up to the FEC to decide the matter -- although the highly politicized regulatory agency won't take it up until after the election. And even then, the FEC's board is often split down the middle. The six-member commission needs four votes to determine there's enough evidence to proceed with investigations, and it is often split 3-3 along ideological lines.
Alaskans Standing Together has the backing of Ahtna Inc., Arctic Slope Regional Corp., Bristol Bay Native Corp., Bering Straits Native Corp., Calista Corp., Chugach Alaska Corp., Cook Inlet Region Inc., Doyon Limited, Koniag Inc., NANA Regional Corp. and Sealaska Corp.In recent years, Alaska Native firms have been under scrutiny for the no-bid federal contracts they're eligible for under the U.S. Small Business Administration's 8(a) program. Some in Congress have suggested changing the guidelines for awarding contracts.
Miller in a statement said that the donations from Native corporations and Murkowski's support of their agenda reflected what he described as a "shocking" level of corruption.
"Their efforts to preserve the status quo and re-elect their 'bought and paid for' Senator are not even bound by the law," he said. "The Alaskan Native corporations have reaped billions from questionable set-asides and federal contracting programs and Senator Murkowski has fought efforts to reform them. We now know why."
The Miller campaign earlier this week also accused Murkowski of coordinating with Alaskans Standing Together because her name appeared in the signature line of a form that asks the committee to avow it's not working with any candidate or party committee. Alaskans Standing Together said it was a mistake, and that they had experienced difficulties uploading the form to the FEC website.Murkowski's campaign manager Kevin Sweeney said Wednesday that neither Murkowski nor her campaign has had anything to do with campaigns run by any political action committee or any other outside entity. He accused Miller of lying.
"Joe Miller continues to blame other people, he continues to tell lies, he continues to deny accusations even when clear and convincing evidence is placed on the record," Sweeney said. "He has made his time at West Point a central theme in his campaign. Yet he has clearly disregarded the Academy's honor code to 'not lie, cheat, steal or tolerate those who do.' His behavior is unbecoming of an officer, a gentleman and a candidate for the United States Senate."
Democrat Scott McAdams weighed in too, saying he wouldn't accept corporate money in his own campaign -- or money from corporate political action committees.
"There is already a tremendous amount of special interest and corporate money in this Senate race," McAdams said in a statement. "Unfortunately, it is very difficult for voters to find out who is giving to candidate's campaign without the candidates themselves posting the information."
McAdams also criticized the transparency of Senate campaign financial disclosure reports and called on all of the candidates to release the names of their donors on their campaign websites. Murkowski posted a copy of her most recent FEC report on her website on Oct. 14.
Separately from the campaigns, independent expenditure groups have so far in this election pumped $2.6 million into the Alaska Senate race, with $1.5 million for Miller and $1.1 million toward Murkowski.The National Republican Senatorial Committee this week disclosed it had devoted an additional $311,942 to campaign advertising on Miller's behalf. He got another $54,283 from Sen. Jim DeMint's Senate Conservatives Fund Wednesday, for a total of $236,635 so far from the conservative South Carolina Republican.
Embezzlement/Theft Case (Alaska Eskimo Whaling Commission)
https://www.adn.com/crime-justice/article/ex-whaling-commission-director-gets-prison-time-embezzlement/2012/11/29/
Ex-whaling commission director gets prison time for embezzlement
By Casey Grove - ADN - November 28, 2012
Former Alaska Eskimo Whaling Commission director Maggie Ahmaogak, who admitted to stealing from the nonprofit organization, was sentenced Wednesday to 41 months in prison and ordered to pay back more than $393,000.
Ahmaogak, 62, pleaded guilty in May to theft, money laundering and misusing money that belonged to the commission, which receives government funds and aims to protect the subsistence rights of Alaska Eskimos to harvest bowhead whales.
Prosecutors said Ahmaogak, the commission's executive director from 1990 until her firing in 2007, stole hundreds of thousands of dollars through a variety of methods for the benefit of herself and her family, including her husband, five-time North Slope Borough Mayor George Ahmaogak.
But the full amount Ahmaogak took was not outlined in the plea agreement and a final tally was put off until her sentencing hearing, which began earlier this month. In four tedious days of examining checks, credit card statements and other documents from a total of more than 100,000 pages collected by federal investigators, Assistant U.S. Attorney Andrea Steward showed that Ahmaogak used the commission's money to "line her own pockets," as Steward put it. Ahmaogak and her husband gambled the money away and bought things like a Hummer SUV, snowmachines and an expensive refrigerator, among other items.
Steward said Ahmaogak stole more than $420,000, some of it taxpayer dollars from government sources like the National Oceanic and Atmospheric Administration. Ahmaogak's attorney, Kevin Fitzgerald, said thousands of dollars went to whaling commissioners and that some of the money paid for things that furthered the commission's purpose. The total loss to the commission was closer to $91,000, Fitzgerald said.
Steward said Ahmaogak pilfered the commission's accounts by writing checks to herself, approving her own bonuses and a retroactive pay raise, paying for meals and expensive personal items on the commission's credit card, making a wire transfer directly from a commission account to her own, and filling out time sheets with excessive overtime to which she was not entitled.
It was "straight up theft" from an organization that Ahmaogak turned into "her own private cash cow," even while the commission struggled financially in its last few years under Ahmaogak's leadership, Steward said.
"What is clear is that there is a pattern over the years that, when (she) wanted to make an expensive purchase, AEWC paid for it," Steward said. "The defendant had an explanation for just about everything, but they just didn't add up."
"These are not mistakes," Steward said. "These are lies."
Ahmaogak's attorney said the federal prosecutor had not proved that some alleged theft -- including an $8,000 bonus Ahmaogak approved for herself shortly after learning a finance company wanted that same amount for a Hummer she was buying -- was theft at all. There was nothing in commission bylaws that said she couldn't give herself a bonus, and other employees received bonuses, Fitzgerald said. As another example, Ahmaogak bought two snowmachines to replace two that hunters demolished while scouting for caribou that was to be eaten during a commission meeting, Fitzgerald said. The snowmachines were a legitimate commission expense, and the prosecutor had not proved otherwise, he said.
Specific discrepancies between expenses Ahmaogak claimed as legitimate in interviews with federal agents and court filings, which she later acknowledged were inappropriate or explained in other ways, could be chalked up to the complexity of the case, Fitzgerald said.
"The idea that there might be mistakes? Yeah, there were mistakes," he said. "This has been an extraordinarily complex case."
Finally, as the lengthy sentencing hearing neared its end, it was Ahmaogak's turn to make a statement to the judge.
"First of all, I'd like to say I'm sorry. I apologize for this incident," Ahmaogak said. "I've done a lot of work for my people, putting food on their tables and at the same time protecting their ability to harvest bowhead whales."
Ahmaogak said she had abused the trust of the people the commission serves and that she was saddened and embarrassed.
"I hope the organization is able to overcome any damage I have done," she said.
In handing down her sentence, Judge Gleason said she had not believed parts of Ahmaogak's previous testimony and did not think the former commission director had accepted responsibility for her actions.
Gleason denied Fitzgerald's request that Ahmaogak spend the 41-month sentence -- three years, five months -- under house arrest, and ordered her to report to prison. Ahmaogak must also pay $393,193.90 restitution to the commission and spend three years on probation after she is released, Gleason said.
"She was very trusted by those she worked for and those she worked with, but that is what led to this breakdown," Gleason said. "It's the violation of trust in this offense that I see as most troubling."
Embezzlement/Theft case (Stagehands Union)
https://www.adn.com/alaska-news/crime-courts/2017/06/16/anchorage-stagehands-union-rocked-by-nearly-200k-embezzlement-case/
Anchorage Stagehands Union Rocked by Embezzlement Case
by Chris Klint
June 16, 2017 story in ADN
Anchorage Stagehands Union Rocked by Embezzlement Case
by Chris Klint
June 16, 2017 story in ADN
The small Anchorage chapter of a major union for stagehands lost several years' worth of dues when an official embezzled from it for more than three years, federal prosecutors say.
Ann C. Reddig, 62, is charged with embezzlement and forgery, according to documents filed in U.S. District Court last week.
A statement on the charges said Reddig was secretary-treasurer of the International Alliance of Theatrical Stage Employees' Local Unit 918 in Anchorage from March 2007 to September 2014.
Starting in January 2010 and continuing until she left that position, prosecutors said in court documents, Reddig "embezzled, stole, and unlawfully and willfully abstracted and converted to her own use, or the use of another" more than $193,000 of the union's funds.
Assistant U.S. Attorney Jonas Walker, who is handling the case, declined to discuss it in detail this week. A spokeswoman for the Anchorage U.S. attorney's office said Reddig was issued a summons to appear in court June 26.
Eric Lizer, Local Unit 918's business agent, said Reddig has been a well-known stage performer in Alaska since the 1970s. She last appeared in Juneau-based Perseverance Theatre's 2014-15 production of "A Christmas Carol."
Losing the funds Reddig stands accused of embezzling, he said, was a severe blow to a union with about 50 members that takes in about $45,000 a year.
"That dollar amount that is stated in the charges is like five, six years of our entire income," Lizer said. "It's a significant amount of money, in comparison to the size of the organization." Lizer said Reddig's time as secretary-treasurer overlapped with a boom in union membership and dues during Alaska's now-rescinded film tax credit, which led to several film productions in the state from 2009 to 2015. The highest-profile project among them, receiving $9.6 million in state funds, was "Big Miracle" – a 2012 Drew Barrymore feature film retelling the 1988 effort to rescue gray whales stranded in ice near Barrow.
"It went up to 85 full-fledged, card-carrying members," Lizer said. "We had 200 people under our jurisdiction on 'Big Miracle.' "
The case came to light in 2014, Lizer said, when a bank's fraud unit contacted the local union. The union conducted an internal investigation and also alerted the federal Labor Department, which conducted its own investigation.
"We internally removed Ann from office and then also from membership," Lizer said. "After we discovered it, we had an audit done."
Lizer said the federal investigator found that Reddig had used "hundreds" of electronic transfers, forged checks and cash withdrawals to take money from the union, always in small amounts to avoid detection.
The federal investigation ended about 18 months ago but only recently led to charges due to caseload delays. In the meantime, Lizer said, Local 918 has paid all its creditors after some were left unpaid due to the embezzlement — although it got "really far behind" on paying its rent in the process.
"We're caught up so we're solvent again, which is fantastic," Lizer said. "We are very enthused that the union is finally going to get some closure on this issue."
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