Embezzeling from Chippewa Indians earns woman year in jail
MADISON WI—A 55-year old Cumberland woman was sentenced on January 4th to one year and one day in prison. Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin announced.
Karen Johnson pleaded guilty on September 1, 2023 for wire fraud. The account states that between 2014 and 2019, Johnson stole over $200,000 from the St. Croix Chippewa Housing Authority, an agency of the St. Croix Chippewa Indians of Wisconsin. This agency is responsible for providing and maintaining housing for low-income tribal members. The Housing Authority receives in excess of $1 million each year in grant funding from the U.S. Department of Housing and Urban Development. Johnson, who had worked for the Housing Authority since 1995, used her position to write checks for personal expenses. This includes a scheme to defraud in which she generated and approved false invoices, billing the Housing Authority for work purportedly done by a contractor. Johnson then wrote checks on Housing Authority funds, forged the contractor’s signature, and deposited the checks into her own bank account.
At sentencing, Judge William M. Conley found that Johnson’s conduct was serious because she took advantage of her position within the Housing Authority and deprived other tribal members of financial support.
The charges against Johnson were the results of an investigation conducted by the U.S. Department of Housing and Urban Development’s Office of Inspector General.
