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Justice News

Department of Justice
U.S. Attorney’s Office
District of Maine

Tuesday, October 28, 2014

California Man Sentenced to 1½ Years in Prison for Theft and Embezzlement from the Passamaquoddy Tribe

Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373

Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Charles
Fourcloud, a/k/a “Arlynn E. Knudsen,” 59, of San Jose, California, was sentenced today in
U.S. District Court by Judge George Z. Singal to 1½ years in prison and three years of
supervised release for stealing and embezzling funds from the Passamaquoddy Tribe at Pleasant
Point. He was also ordered to pay $22,571.61 in restitution. Fourcloud pleaded guilty on June
26, 2014.

Court records show that in May 2013, the defendant was hired by the tribe to serve as its
chief financial officer (CFO). He applied for the CFO position using a fictitious employment
history and fake references. He also concealed the facts that in 1997 he was convicted in federal
court in the Western Division of South Dakota of conspiracy to defraud the United States, theft
from an Indian tribal organization, theft from a program receiving federal funds, money
laundering and structuring and that he served an eight year prison sentence. From April through
August 2013, the defendant fraudulently obtained and stole about $20,000 from the tribe by
submitting fraudulent travel expense reports and supporting documentation and by submitting
fraudulent documentation related to moving expense reimbursement.

The investigation was conducted jointly by the U.S. Department of Health and Human
Services Office of Inspector General and the Pleasant Point Police Department.

Updated January 26, 2015