FOR IMMEDIATE RELEASE
June 21, 2004
UTE MOUNTAIN UTE TRIBAL CHAIR JUDY KNIGHT-FRANK SENTENCED TO FEDERAL PRISON FOR FILING FALSE INCOME TAX RETURN
DENVER – John W. Suthers, United States Attorney for the District of Colorado, Anne Marie Minogue, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office, and Phillip B.J. Reid, Special Agent in Charge of the Federal Bureau of Investigation’s Denver office, today announced that JUDY KNIGHT-FRANK, age 60, was sentenced to serve 5 months in federal prison followed by 5 months of home detention with electronic monitoring by U.S. District Court Judge Marcia S. Krieger for falsifying her 1998 federal income tax return. KNIGHT-FRANK was also ordered to perform 150 hours of community service. KNIGHT-FRANK had previously submitted her resignation as the elected chair of the Ute Mountain Ute Indian Tribe effective March 26, 2004. She was also tribal chair from 1989 to 1998 and Vice Chair from 1981 to 1988. She was ordered by Judge Krieger to report to an institution designated by the Bureau of Prisons no later than August 2, 2004.
KNIGHT-FRANK utilized a tribal payroll advance program to obtain substantial payroll advances. According to the plea agreement, in 1998 KNIGHT-FRANK received a net total of $153,249.01. The government asserts that the taxes owed for 1998 total $59,058.33. According to the indictment, the Tribe advanced KNIGHT-FRANK a total of $359,317.04 over a three year period, with the total net amount being approximately $274,536.82.
“As Chairperson, the defendant was the chief executive officer and final authority of the Ute Mountain Ute,” United States Attorney John Suthers said. “She chose to ignore sound legal advice and instead engaged in activities which were contrary to the interests of the tribal members. The breach of her duties were criminal in nature and required that she be prosecuted.”
“Those seeking to defraud the Internal Revenue Service will meet with prosecution as a just reward for their efforts,” said Anne Marie Minogue, Special Agent In Charge, IRS-Criminal Investigation, Denver Field Office.
“Through the cooperation with the IRS, this case resulted in the successful prosecution of the defendant while keeping the integrity of the tribal council in tact,” FBI Special Agent in Charge Phillip Reid said.
This case was investigated by special agents of the Federal Bureau of Investigation (Durango Office) and the Internal Revenue Service Criminal Investigations (Grand Junction Office). The case was prosecuted by Assistant U.S. Attorneys Robert Kennedy and Bob Mydans.
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