GREAT FALLS - The former Director of the Chippewa Cree Tribe Roads Branch was sentenced to 38 months in federal custody today for taking bribes from contractors. U.S. District Judge Brian Morris sentenced Timothy Warren Rosette, 52, of Box Elder, in connection with his earlier guilty pleas to two counts of bribery and one count of theft from an Indian tribal organization, to serve two years of supervised release and pay $600,000 in restitution to the Tribe.
At Rosette’s guilty plea in July 2015, the prosecution told the Court that Rosette served as the Director of the Roads Division, with the authority to select contractors, award contracts, and approve contract payments relating to the Roads Division’s operations. Rosette also served as the Director of the Rocky Boy Health Clinic’s Environmental Health Unit, and in this role had authority to select contractors, award contracts and approve contract payments relating to the tribe’s community water supply (lagoons, pipes, sewers, storm drains, etc.).
In October 2009 a contractor called Hunter Burns Construction, LLC, (HBC), which was a business owned and controlled by Rocky Boy’s area contractor Hunter Burns and Dr. James Eastlick, a clinical psychologist at the Rocky Boy Health Clinic, purchased $6,219.57 worth of furniture for Rosette which was delivered in November 2009. On Oct. 14, 2009, HBC deposited $18,600 from the Clinic for a construction contract. The furniture purchase occurred five days after the deposit from the health clinic.
In November 2011, Rosette, Eastlick, and Tribal Vice-Chairman John Chance Houle agreed to inflate a contractual payment from the Clinic to HBC for a sum of $20,000. The HBC invoice dated Nov. 28, 2011, indicated that the payment was an increase to an original invoice for transportation of “bio-hazard material." On Nov. 28, 2011, a Clinic requisition was signed by Rosette and a $20,000 check was issued. When interviewed, Rosette admitted the $20,000 given to HBC in this transaction was fraudulent. Rosette also admitted to receiving $2,000 in cash from Eastlick on behalf of HBC for completing this transaction.
Between August of 2009 and January of 2013, Eastlick and HBC made hundreds of cash payments to Rosette in relation to HBC construction and trucking contracts, many of them on a per truck load, per day basis. The last known gratuity made to Rosette by Eastlick and HBC took the form of an expense-paid trip to Las Vegas, Nevada, for Rosette and five of his family members in December 2011. Eastlick and HBC covered the cost of airfare and hotels for Rosette and his family members during this Las Vegas trip.
Between August 2009 and January 2013, payments from the Clinic to HBC totaled $831,475.50. Between August 2010 and July 2013, payments from the Chippewa Cree Tribe’s Roads Division to HBC totaled $690,798.59.
There came a time during this period when HBC was unable to handle all of the trucking work required by the Roads Branch, as the Tribe attempted to make infrastructure repairs after the 2010 floods and complete American Recovery and Reinvestment Act (ARRA) projects on the reservation. HBC was also a subcontractor on the Tiber Project, and therefore, had commitments of equipment and labor on that project as well.
Shad Huston, a Havre businessman, controlled, either exclusively or jointly, several companies that did business with the Chippewa Cree Tribe. In July 2010, Huston became the business manager for K Bar K Trucking (K-K Trucking). Eastlick enlisted Huston to assist in the trucking business with the Tribe and Huston then secured sole-source hauling contracts with the Roads Division. Like Eastlick, Huston paid Rosette cash kick-backs on a per truck per day basis. Investigators identified in excess of $111,000 in cash withdrawals from the K-K bank account. Between July 2010 and July 2012, K-K Trucking was paid approximately $833,000 from the Roads Division. Rosette admitted to investigators that he accepted cash payments and property from Huston. Huston advised an associate inquiring about the inflated amount of the trucking invoices that the increased amount was necessary to “pay a tax" to tribal officials.
In October 2011 Rosette approved for payment two false invoices from “KN Trucking," totaling $120,000, knowing that KN Trucking had not performed the work itemized on the invoices. A tribal payment of $120,000 was actually issued to Huston’s company, K&N Consulting. The $120,000 payment was the first deposit into the newly created K&N Consulting bank account at Independence Bank. Rosette, Huston, and Eastlick all admitted to investigators that this claim was entirely fraudulent and designed only to extract money from the tribe. The investigation determined that K&N Consulting was providing claim service consultation to the Tribe with respect to their insurance claim from the 2010 floods, as well as the Tribe’s claims filed with FEMA. Investigators identified in excess of $99,000 in cash withdrawals from the K&N bank account.
The prosecutors told the Court that in March of 2012, Huston paid a $3,000 down payment at Tilleman Motor towards Rosette’s personal purchase of a new Suburban. Other property Rosette received from Huston consisted of a ring, a pair of diamond earrings, and a saddle, all merchandise provided through Leon’s Buy and Sell pawn shop in Havre.
TMP Services was another Huston business; this one established to obtain tribal contracts to provide storage for property after the flood (medical equipment, windows, furniture, etc.). Basically TMP Services was a collection of storage containers. TMP Services did business with the Chippewa Cree Construction Corporation (CCCC) and received over $372,000 in contract payments.
In the summer of 2012, TMP Services submitted a $30,000 invoice for “consulting services" to the CCCC for services provided to the Roads Branch. Investigators recognized the transaction as suspicious because the construction corporation would not, legitimately, be paying the expenses of the Roads Branch as they are entirely separate entities with separate financial interests. The investigation revealed that the invoice was indeed fraudulent and that no consulting services were provided. The invoice was designed to extract tribal monies for the personal benefit of Huston and Rosette. Rosette, as a member of the Board of Directors for the construction corporation, signed off on the check for $30,000. The check was also signed by Sunchild. Investigators also identified-and Rosette confirmed-that Rosette received two check payments from TMP Services totaling $7,500 and three check payments from Huston Leasing totaling $8,000. Investigators also identified in excess of $28,000 in cash withdrawals from the Huston Leasing bank account.
There is no parole in the federal system. Rosette will have to serve the entirety of the sentence less credit for good behavior which cannot exceed 15% of the sentence imposed.
The case was investigated by agents of the Guardians Project, including agents from the Offices of Inspector General for Departments of Interior and Health & Human Services, EPA, and the Criminal Investigations Division of the Internal Revenue Service.
Source: U.S. Department of Justice, Office of the United States Attorneys
