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Press Release

Skagway Man Sentenced for Theft of Government Funds

For Immediate Release
U.S. Attorney's Office, District of Alaska

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Skagway man has been sentenced in federal court for theft of government funds.

Carey L. Dorn, 67, of Skagway, Alaska, was sentenced last Friday by Chief U.S. District Judge Timothy M. Burgess, to serve five years of probation, and was ordered to pay $78,811.68 in restitution to the United States Railroad Retirement Board (RRB).

According to court documents, from January 2011 through December 2013, Dorn received $78,811.68 in overpayments from RRB Employment Disability that he was not entitled to because he knowingly failed to file accurate reports of his employment and income earnings during this time period.  In 2005, Dorn had become injured on the job with the U.S. Railroad and was allowed to take an early retirement in March 2007.  As part of the conditions of Dorn’s early retirement benefits, he was required to accurately report his employment and income to the RRB.  In 2008, Dorn’s wife opened a photo and car rental business in Skagway.  Dorn began working at the business full-time, exclusively running its day-to-day operations, but knowingly and willfully failed to report this income to the RRB since it could result in reduced or withheld benefits from RRB. 

The U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations (RRB OIG/OI) conducted the investigation leading to the successful prosecution of this case.  This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.

Updated September 25, 2018

Financial Fraud