Havre Daily News - News you can use

 
 

By Tim Leeds 

Indictment reveals kickback charges

Belcourts, former school board chair Huston accused of $100,000 payments, kickbacks in FEMA funds

 

October 30, 2013



Former Havre School Board chair Shad Huston, 37, is accused of accepting hundreds of thousands of dollars in contracts and then paying hundreds of thousands of dollars back to Chippewa Cree Construction Corp. CEO Tony Belcourt and his wife, Hailey Belcourt.

Details of these allegations were in indictments unsealed in federal court in Great Falls Tuesday.

They were the latest in a string of charges alleging embezzlement of federal money allocated to Rocky Boy’s Indian Reservation, with defendants in two different cases pleading not guilty Tuesday to all charges.

The indictment including Huston lists $36.6 million in Federal Emergency Management Agency and insurance company payments the Chippewa Cree Tribe received to replace the tribal clinic destroyed in the 2010 floods and to repair other damage from those floods.

The indictments allege the acts took place through Huston’s private businesses, primarily TMP Services and K and N Consulting, two years after he left the school board in 2009.

Tony Belcourt, a former state representative and former Chippewa Cree Tribe Business Committee member, is CEO of the Chippewa Cree Construction Corp ., the tribally owned business that acts as the prime contractor on most major construction projects for the tribe. He has been put on leave without pay pending resolution of the court cases.

Belcourt’s attorney said the government keeps piling weak indictments against his client, who he says has done all of his business openly and above board.

“This is just like magpies. If you get enough magpies, you can take down a bull elk,” attorney Chuck Watson told The Associated Press Tuesday. “The government has gotten just too used to being able to indict people into submission. It's just not going to happen in this case.”

The other indictment unsealed Tuesday brings back some people already indicted under previous charges, including Belcourt with the fourth set of embezzlement charges the government has filed against him, and James Howard Eastlick Jr. and Hunter Burns, the second indictments filed against them.

Indictments filed in September, which include Hailey Belcourt as a defendant, allege Burns and Eastlick, who was a part owner and manager of Hunter Burns Construction at that time, accepted contracts awarded to the construction company to do work on the regional pipeline on which Chippewa Cree Construction is the lead contractor and paid bribes back to the Belcourts.

The indictments unsealed Tuesday allege that after Belcourt awarded a $15,000 contract to Hunter Burns Construction, the company filed a false claim April 7, 2010, for $100,000, to be paid with funds from the American Recovery and Reinvestment Act — the federal stimulus bill — allocated for work on the water project.

Belcourt and Eastlick pleaded not guilty to the charges. Judge Keith Strong entered a not guilty plea for Burns, who was in the hospital and could not attend the hearing.

The government also filed notice it will seek fines against Hunter Burns Construction if the defendants are convicted.

In the indictment against Huston and the Belcourts the government alleges that:

• On May 20, 2011, Huston and his storage company, TMP Services, received a $66,670 check from Chippewa Cree Construction.

• Huston and TMP Services issued a $7,500 check to Hailey Belcourt June 29, 2011, the indictment says.

• Oct. 3, 2011, Huston transferred $10,000 to the Belcourt’s personal account, the indictment says.

• Nov. 25, 2011, Huston and TMP Services received a $231,225 check from the construction company, and the same day issued a $5,000 check to Hailey Belcourt, the indictment alleges.

• Dec. 22, 2011, Huston accepted a $300,000 cashier’s check from the Chippewa Cree Tribe for “claims prep,” the indictment says. The same day, he wrote a check from K and N Consulting to Tony Belcourt for $200,000, which Belcourt deposited into his personal bank account, the indictment says.

The same day, Huston cut a $100,000 check from his personal bank account to Tony Belcourt, which Belcourt deposited Dec. 23, 2011, the indictment says.

The indictment says the government will seek fines against TMP Services and K and N Consulting if Huston is convicted.

The indictments are the latest in a string of accusations stemming from investigations in the Guardians Project, an initiative spearheaded by U.S. Attorney for the District of Montana Michael Cotter. In that initiative, federal agencies conduct joint operations to investigate fraud and embezzlement on reservations in Montana.

Embezzlement charges previously had been filed against Rocky Boy Health Board and Clinic CEO Fawn Tadios, and another set of charges were filed against Health Board employee Garcia Duran. The defendants pleaded not guilty to the charges in those cases.

The first set of indictments involving federal funds at Rocky Boy charged Tony and Hailey Belcourt and Laurel residents James Howard Eastlick Sr. and Tammy and Mark Leischner, Eastlick Jr.’s father, sister and brother-in-law, alleging they ran federal stimulus dollars through a series of transactions in organizations and companies including some owned by Tammy Leischner and Tony Belcourt to convert the money to their own use.

Business Committee member John “Chance” Houle originally was included in that indictment, but the government later dropped the charges against him. The Belcourts, Leischner and Eastlick later were arraigned and pleaded not guilty to amended charges in that case.

 

Reader Comments

(11)

Kickhimback writes:

If Tony Belcourt is convicted, his enrollment should be taken away, Banish him, Kickhimback. This has brought so much hardship and suffering to the Rocky Boy People. The money was to help the tribe as a whole, to help better the lives and the health of the people. The people who are responsible for this victimized every single tribal member. Nice 200,000.00 Christmas deposit.

concerned writes:

@Kyle, yes I agree you own what you work for! What gave this family the right to steal federal funds that were intended for the people; not just a single family.

Joe writes:

If the tribe just divided up all their federal grants and dispersed them direct to their enrolled members they would be money ahead and help more people

bill writes:

Millions stolen. Kickbacks. Plain Green loan sharking. School and tribal elected officials, businessmen, health professionals, contractors indicted, with more to follow. The chairmanship stolen from Ken Blatt by the Ricky Mouse Club right in broad daylight, twice. RB is the tribal crime capital in the nation. All that is needed is a Bada Bing and bingo, organized crime.

disgusted writes:

$36.6 million? Where did all of this money go in the last two years? I know a lot of it was dispersed among various tribal programs and individuals and not used for what is was intended for. One example is; $5 million to the casino to pay down debt. Now the tribal government is seeking tax credits to fund completion of the clinic. It is also alleged that the councilman that was formerly indicted is now one of those magpies piling on the back of the bull elk. Go figure.

kyle writes:

@Concerned everything is given to the tribe so can you really say he is taking from the tribe or his he taking from the federal government? I usually only consider something mine if I have 1. either worked for it or 2. earned it.

OMG writes:

OMG That's a lot of money. I'm shocked how much they tried to get away with. What's gives these people the right to think they can steal this with no consequences and apparently no guilt. It was not their money to take.

JKelleherHDN writes:

Whyowhy: Which comments to allow and disallow is a question our staff faces each day. It's hard to set a definite police — each case is different. The woman in question was convicted of a serious crime. Shad Huston is not guilty unless/until federal prosecutors prove it. Comments on the case in general are OK. On individuals, no. We have killed hundreds on other defendants in the case.

concerned writes:

Wow, I don't know how this could be preceived as a weak case, money going directly into a personal checking account. They should be forced off the reservation a non-Indian really benefited from the Tribe. Well, I more than one. I say all Tribal members should boycott the store in Bocx Elder this family has taken enough from the Tribal members. No shame what so ever. You do the crime serve the time.

Grumpy writes:

I couldn't agree more with jail. Until these thieves are locked up for substantial lengths of time, like 20 yrs. with no time off for good behavior, and made to serve the entire time in prison this is a joke to them and will never end. Make an example out of Huston, Belcourt and his wife and all involved. Min. of 20 yrs. and manditory to serve all 20 yrs. in prison.

Jail writes:

These guys all need substantial jail time if found guilty. Make an example of them so the new and rising stars think twice before stealing from their own people