Friday, September 15, 2017

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

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

  • 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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