The United States Attorney's Office announced that during a federal court session in Great Falls, on August 8, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
FRANCIS KAY ONSTAD, a 60-year-old resident of Valier, appeared on Counts I, II-XXII, XXIII - XXVIII, and XXX - XXXIII.
DELYLE SHANNY AUGARE, a 57-year-old resident of Browning, appeared on Counts I, II - XXVIII, and XXXIV - XXXVII.
GARY JOSEPH CONTI, a 67-year-old resident of Three Forks, appeared on Counts I, II - XXVIII, and XXIX.
DOROTHY MAY STILL SMOKING, a 64-year-old resident of East Glacier, appeared on Counts I, and II - XXV.
KATHERYN ELIZABETH SHERMAN, a 66-year-old resident of East Glacier, appeared on Counts I, and II - XXV.
CHARLOTTE B. NEW BREAST, a 52-year-old resident of East Glacier, appeared on Counts I, II-XXII, and XXVII.
The defendants pled not guilty to the charges and were released on special conditions.
CHARGES:
Count I: Conspiracy to Defraud The United States
Penalty: 5 years imprisonment, $250,000 fine and 3 years supervised release
Counts II-XXII: Scheme to Defraud the United States and the Blackfeet Tribe/Wire
Penalty: 20 years imprisonment, $250,000 fine and 3 years supervised release
Count XXIII: Federal False Claims Act Conspiracy
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Count XXIV: Federal False Claims Act
Penalty: 5 years imprisonment, $250,000 fine and 3 years supervised release
Count XXV: Theft of Federal Property by Fraud
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Counts XXVI & XXVII: Theft from an Indian Tribal Government Receiving Federal Grants
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Count XXVIII: Money Laundering
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Count XXIX: Bankruptcy Fraud
Penalty: 5 years imprisonment, $250,000 fine and 3 years supervised release
Counts XXX-XXXII, XXXV: Willful Failure to File Tax Return
Penalty: 1 year imprisonment, $25,000 fine and 1 year supervised release
Counts XXXIII-XXXIV, XXXVI-XXXVII: Income Tax Evasion
Penalty: 5 years imprisonment, $100,000 fine and 3 years supervised release
Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Source: U.S. Department of Justice, Office of the United States Attorneys
