FOR IMMEDIATE RELEASE
May 7, 2002
UTE MOUNTAIN UTE TRIBAL CHAIR JUDY KNIGHT-FRANKINDICTED FOR EMBEZZLEMENT,INCOME TAX FRAUD AND FALSE STATEMENTS
DENVER – John W. Suthers, United States Attorney for the District of Colorado, Mark J. Mershon, Special Agent in Charge of the Federal Bureau of Investigation’s Denver office, and James D. Vickery, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office, today announced that a federal grand jury in Denver, Colorado returned an indictment charging JUDITH KNIGHT-FRANK, age 58, of Towaoc, Colorado, with four (4) counts of making false statements on loan and credit applications, three (3) counts of falsifying tax returns, and four (4) counts of embezzlement and theft from an Indian Tribal organization. KNIGHT-FRANK is currently the elected chair of the Ute Mountain Ute Indian Tribe. She was also tribal chair from 1989 to 1998. The crimes alleged in the indictment occurred between January 1996 and November 1999.
According to the indictment, KNIGHT-FRANK utilized a tribal payroll advance program to obtain frequent and substantial payroll advances. She received the following payroll advances:
Calendar Year Number of Advances Total Amount of Advances
1996 6 $14,000.00
1997 20 $128,415.31
1998 58 $216,901.73
The net amount KNIGHT-FRANK received in 1996 was approximately $8,050.00. In 1997 the net amount was approximately $113,237.81, and in 1998 the net amount was approximately $153,249.01. The Ute Mountain Ute Indian Tribe advanced KNIGHT-FRANKa total of $359,317.04, with the total net amount being approximately $274,536.82.
False Statements
Count 1 of the indictment alleges that KNIGHT-FRANK on April 13, 1998 made a false statement to Vectra Bank of Colorado, formerly known as Valley National Bank of Cortez, by failing to disclose approximately $176,000 in salary advances owed to the Ute Mountain Ute Indian Tribe, when she applied for a $24,047.50 loan.
Count 2 of the indictment alleges that on May 12, 1998 KNIGHT-FRANK made a false statement to the Citizens State Bank of Cortez, by failing to disclose approximately $199,000 in salary advances, when she applied for a $5,016.50 loan.
Count 3 of the indictment alleges that on February 16, 1999 KNIGHT-FRANK made a false statement to the Citizens Bank of Cortez, by failing to disclose approximately $316,000 in salary advances, when she applied for a $10,000.00 loan.
Count 4 of the indictment alleges that on April 15, 1999 KNIGHT-FRANK made a false statement to the Citizens Bank of Cortez, by failing to disclose approximately $316,000 in salary advances, when she applied for a $7,918.03 loan.
Falsifying Income Tax Returns
Count 5 of the indictment alleges that on May 12, 1997 KNIGHT-FRANK falsified her 1996 Income Tax Return by not reporting an additional $8,050.00 in income.
Count 6 of the indictment alleges that on May 19, 1998 KNIGHT-FRANK falsified her 1997 Income Tax Return by not reporting an additional $113,237.81 in income.
Count 7 of the indictment alleges that on October 21, 1999 KNIGHT-FRANK falsified her 1998 Income Tax Return by not reporting an additional $153,249.01 in income.
Embezzlement and Theft
Count 8 of the indictment alleges that between May 9, 1997 and May 17, 1997 KNIGHT-FRANK embezzled over $1,000 from the Ute Mountain Ute Indian Tribe.
Count 9 of the indictment alleges that between November 7, 1997 and November 15, 1997 she embezzled not more than $1,000 from the tribe.
Count 10 of the indictment alleges that between August 4, 1998 and August 13, 1998 she embezzled over $1,000 from the tribe.
Count 11 of the indictment alleges that between November 4, 1998 and November 5, 1998 she embezzled over $1,000 from the tribe.
“Public corruption erodes the public’s trust in its elected officials,” said United States Attorney John Suthers. “Those who are elected to serve on a Tribal Council have a duty to put the public and tribal interests first, and not to use the position for personal benefit,” Mr. Suthers said.
“Public corruption is a breach of the public trust by elected and appointed public servants who use their office for personal gain,” FBI Special Agent In Charge Mark Mershon said.
James D. Vickery, SAC, IRS-Criminal Investigation, Denver Field Office, stated “The Internal Revenue Service has a cadre of special agents whose mission it is to expose tax schemes that conceal proceeds from criminal activity similar to those involved in this embezzlement case. The IRS considers these types of schemes to be tax evasion in progress, that are designed to thwart compliance with federal tax laws.” For more information on Tax Fraud see http://www.treas.gov/irs/ci.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorneys Robert Kennedy and Robert Mydans.
If convicted, KNIGHT-FRANK faces up to 30 years in federal prison and/or a fine of not more than $1,000,000 for each count of making a false statement. She also faces not more than 3 years in prison and/or a $100,000 fine for each count of filing a false tax return, not more than 5 years in prison and/or a fine of up to $250,000 for each count of embezzlement and theft from an Indian Tribal organization over $1,000, and not more than 1 year in prison and/or a fine of up to $100,000 for embezzlement and theft from an Indian Tribal organization under $1,000.
These charges are only allegations and the defendant is presumed innocent unless and until proven guilty.
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