Nov 21, 2007 - 04:03:46 CST
In what's been a prolonged series of multiple sentencings, a federal judge sent a former Twin Buttes school principal to prison Tuesday and put a former custodian and board member on three years' probation.All three were part of a fraud conspiracy to steal more than $665,000 from the small reservation school over three years ending in mid-2005. These three and four others were indicted more than a year ago after a lengthy investigation into school bookkeeping detailed rampant corruption in which all seven covered for each other while falsifying travel vouchers, endorsing school checks to one another and taking school cash.
Three former Twin Buttes school board members were sentenced in the past two weeks.
Tuesday, U.S. District Judge Dan Hovland sent former principal Elaine Incognito to five months in prison, followed by five months of electronically monitored home confinement, and ordered her to repay the school the $58,000 she stole by taking payroll and false travel advances.
The indictment said Incognito, who had been a 27-year teacher and principal at the school, endorsed and cashed school checks totaling $68,000, along with two others in the scheme, among other thefts.
Incognito has diabetes and heart problems and her attorney used her health to try for less prison time.
The principal told the judge that she blamed school business manager Janet Lorenz for not doing anything to prevent the criminal use of school money.
Hovland tried to get Incognito to say who was the ringleader of the conspiracy, but she didn't provide a name.
The judge rhetorically shook his head at the case, saying, "Yet people kept electing these thieves back into office."
The judge doled out three year's probation to Hank Starr, a former board member, and to Paul Fredericks, a former janitor at the school.
Starr was ordered to repay the $29,500 he admitted to stealing, and Fredericks was ordered to repay the $40,000 he admittedly stole.
Both also will put in 200 hours of community service.
Fredericks had been the school custodian for 18 years. In one instance of his embezzlement, the indictment said Fredericks took $3,000 in school money for alleged training in Las Vegas during the National Rodeo Finals. He never went to the training.
Starr, in one instance of theft, took $1,600 for training but never attended the conference in South Dakota.
Hovland took Starr to task for the $40,000 spent by the school board on a holiday basketball tournament in 2004.
The judge said the school board rented rooms for "days on end," and also used school money to pay for a party room during the tournament.
"That was an insane amount of money to spend,"he said.
Starr told the judge he was fired last month from his job at the tribal water treatment plant near Twin Buttes because his status as a felon might jeopardize federal funds for the plant.
Hovland said he was disappointed by the firing, since the case was well publicized for many months.
He told Starr, as he's told others, he hoped they would do better for the school and the town of Twin Buttes.
Last week, Hovland sent former school board president Melissa Starr to federal prison for 18 months for stealing more than $300,000. Melissa Starr took the most money and took it most blatantly. Among other acts, she made a series of cash withdrawals totaling nearly $20,000 from the school's bank accounts.
Tammy Grady, a former board member, was sentenced to seven months and ordered to repay $92,000 she stole from the school.
Darcy Lone Bear, also a board member, was given three years' probation and ordered to repay $24,000.
A former school finance manager, Lillian Holen, will be sentenced Tuesday. She allegedly stole $35,000, according to the original indictment.
(Reporter Jenny Michael contributed to this story. Reach reporter Lauren Donovan at 888-303-5511, or lauren@;westriv.com.)

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