A former Oglala Sioux Tribe employee was sentenced to six years and six months in federal prison for her role in an embezzlement scheme.
The employee worked for the tribe's Tribal Employment Rights Office from 2006 to 2024. Part of her duties included collecting checks from contractors for fees and transferring them to the tribe's revenue deposit where they would then be deposited into the tribe's general fund.
Between November 2017 and May 2024, the employee and another individual engaged in a scheme to divert those fee checks and instead deposit them into the co-defendant's bank account. The employee and the co-defendant then split those funds and used them to make purchases for themselves, including homes and vehicles.
According to the U.S. Department of Justice, the embezzlement scheme resulted in a $4.7 million loss. The employee was ordered to pay $4,744,415.36 in restitution.
Source: https://tribalbusinessnews.com/sections/policy-and-law/15682-former-oglala-sioux-tribe-employee-sentenced-to-6-years-for-4-7-million-tero-fraud; https://www.justice.gov/usao-sd/pr/nebraska-woman-sentenced-more-6-years-federal-prison-wire-fraud-and-money-laundering
Commentary
In the above matter, the employee was ordered to pay an amount in restitution. A restitution order may create the illusion of a pending recovery for embezzlement victims, but circumstances may not always allow for this.
According to the U.S. Department of Justice, the chances of full recovery are very low. In many cases, defendants who committed embezzlement spent the embezzled funds on personal items, travel, or medical bills and do not have assets to repay their victims.
Embezzlers may be able to make partial payments toward the restitution total. However, full restitution, especially for large restitution sums, is rare. Less than ten percent of total restitution in federal cases is ever fully recovered.
The final takeaway is that restitution orders are not reliable sources of funds to replace those lost through embezzlement schemes. Organizations may have to rely on other methods, such as insurance proceeds, to recoup stolen funds.
Sources: https://www.justice.gov/criminal/criminal-vns/restitution-process; https://www.congress.gov/crs-product/RL34138
