A second former member of the Twin Buttes school board has now admitted to being among those who allegedly stole more than $665,000 from the small reservation school over a three-year period ending in 2006.
Darcy Lone Bear, former vice president of the board, admitted he stole up to $25,000 in U.S. District Court in Bismarck on Friday.
Lone Bear is one of seven school personnel charged with conspiracy, embezzlement and fraud. They all initially pleaded not guilty after a federal indictment was handed down in November.
Former board president Melissa Starr changed her plea to guilty Thursday on one felony count. She admitted to stealing up to $330,000 in school funds.
U.S. District Judge Daniel Hovland ordered sentencing investigations for both Lone Bear and Starr. They will be sentenced sometime this summer under federal sentencing guidelines.
Under the guidelines, Lone Bear could face from zero to six months in jail, three years of supervised probation and up to 400 hours of community service. Hovland said anyone in the case who is convicted and given probation likely will be sentenced to community service as well.
"I think those who have taken from the Twin Buttes Elementary School need to give something back," he said.
Lone Bear said he did not see the problem initially in receiving stipends in double the amount he was supposed to get when he traveled to conferences, seminars and events as a school board member. He said school board members received a $1,000 stipend for attending such events.
"I didn't realize it was wrong to go and travel. It was board approved,"he said. "I thought it was OK, but I guess it was not."
Hovland questioned the necessity of school board members receiving stipends at all.
"If you don't think travel expenses are enough when you attend an out-of-state seminar, then don't serve on the school board," the judge said.
Bill Schmidt, a federal public defender appointed to represent Lone Bear, said during the hearing that some members of the board had been able to influence others. Schmidt declined to comment following the hearing because of unresolved issues in the case.
Starr promised to cooperate in a continuing federal investigation into fraudulent use of school funds and other areas.
Both Starr and Lone Bear are involved with Twin Buttes Custom Homes, Starr as a board member and Lone Bear as a construction manager.
Last week, the Three Affiliated Tribes returned more than $3 million in federal money slated for construction of a new school at Twin Buttes because the Bureau of Indian Affairs canceled the $8 million project.
Twin Buttes Custom Homes had been named as construction manager for the new school construction, and the BIA questioned Twin Buttes Custom Homes' qualifications and some early invoices for the project.
More charges are a possibility, though federal investigators say they can't comment about the details of the continuing investigation.
U.S. Attorney Clare Hochhalter said his office is talking with the remaining five defendants in the Twin Buttes conspiracy. A trial scheduled for May 1 could be averted if the remaining defendants also enter into guilty plea agreements.
The seven were part of what the indictment described as a rampant conspiracy, covering each other's fake travel vouchers and salary advances to get access to the school's money, leaving the school unable to pay its bills. Starr also tapped into the school's checking accounts and credit card.
The other five who were charged are former board member Tammy Grady-Jacobs, $126,000; former principal Elaine Incognito, $67,000; former custodian Paul Fredericks, $63,000; former board member and Melissa Starr's brother, Hank Starr, $43,000; and former school finance manager Lillian Holen, $35,000.
The indictment details frequent occasions when the seven claimed travel to places they never went, ostensibly on school business. On other occasions, they allegedly claimed travel to places like Las Vegas, during the National Finals Rodeo, but never attended the training and workshops they claimed.
Gov. John Hoeven had suspended Melissa Starr, Hank Starr and Lone Bear from the school board, at the tribal council's request.
Hovland asked Lone Bear about his suspension from the school board and whether he had any plans to resign from the post.
"After today, I guess I probably will do that," Lone Bear said.
Posted in Local on Friday, April 13, 2007 7:00 pm Updated: 3:52 pm.
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