The sentencing of Twin Buttes school board members and personnel who stole up to $665,000 of school money was postponed from this week until possibly late October.
All seven pleaded guilty to federal fraud conspiracy and theft charges this spring, but two now say they need more time to defend how much they stole before restitution is decided.
Assistant U.S. Attorney Clare Hochhalter said there appears to be a belief that the government's figures in the case are too high and should be lower. Federal Judge Dan Hovland gave them more time to prove it. He postponed all sentencings in the meantime.
Four sentencings were to have been held Monday and three today.
The seven were indicted a year ago after an 18-month investigation by federal investigators. A federal grand jury found that the seven had conspired to defraud the school by writing false travel vouchers, taking salary advances and withdrawing money from the school's bank account from 2003 to 2006.
Former school board president Melissa Starr admitted stealing up to $330,000. A week ago, she told the court she needed Twin Buttes school records to get her own numbers together for the restitution phase of her sentencing, but was denied access until after the June school board election. She said she only got the records Aug. 30.
Starr had her own name in for that election and managed to get 27 votes while awaiting sentencing.
Starr said she thinks there are a number of duplications and that she can show she was on an airline and not taking fraudulent travel money.
The indictment said Starr fraudulently claimed $187,000 in travel vouchers and stipends and in checks made out to other people. She took $94,000 through checks made out to the school and Cross Country, a debit card company. She took $19,000 from the school bank account and $28,000 in wire transfers, including part of $13,000 in transfers over a two-day period in 2004, when she was in Washington, D.C.
Paul Fredericks, the former school custodian who admitted stealing up to $63,000, said he believes with a little more time he can show documents proving he took less than $30,000.
Fredericks said the proper documents are in his uncle's Boulder, Colo., law firm that recently moved to a new building. He said getting those documents could result in a two-point reduction under federal sentencing guidelines.
Lillian Holen, the school finance officer, already has a restitution deal in her plea agreement, Hochhalter said. She pleaded guilty to stealing up to $35,000
The four others are former board member Tammy Grady-Jacobs, $126,000; former principal Elaine Incognito, $67,000; board member and Melissa Starr's brother Hank Starr, $43,000; and board member Darcy Lone Bear admitted he took up to $25,000.
Their sentencing already had been postponed from July.
(Reach reporter Lauren Donovan at 1-888-303-5511, or lauren@westriv.com.)
Posted in Local on Sunday, September 9, 2007 7:00 pm Updated: 3:42 pm.
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