Former Lone Butte Industrial Development Corporation Members Indicted for Embezzlement

PHOENIX—A federal grand jury in Phoenix returned separate one-count indictments today against Gila River Indian Community members Franklin Joseph Jackson, Sr., 62, of Bapchule, Ariz., and Lloyd Notah, Jr., 63, of Sacaton, for embezzlement from a tribal organization.

“The people of the Gila River Indian Community put their trust in these defendants, and that trust was violated,” said U.S. Attorney Dennis Burke. “This office will not tolerate corruption and self-dealing at any level of government service. We and our partners at the FBI will continue to aggressively combat public corruption wherever it exists.”

Added Steven R. Hooper, FBI Acting Special Agent in Charge, Phoenix Division, “Today’s indictments illustrate the commitment by the FBI and the U.S. Attorney’s Office to combat public corruption. Whenever public officials take advantage of their position to benefit themselves it erodes the public’s trust. It is imperative that law enforcement continue to pursue those who participate in public corruption regardless if it occurs in our cities or in our Tribal communities.”

Jackson’s indictment alleges that from September 15, 2007, through March 4, 2009, Jackson served as a board member on the board of directors for the Gila River Indian Community’s Lone Butte Industrial Development Corporation. During that time, Jackson embezzled and converted to his own use approximately $16,879.50 that belonged to the tribal organization.

Notah’s indictment alleges that during the period of September 26, 2007, through March 7, 2009, while also serving as a board member on the Lone Butte Industrial Development Corporation, he embezzled and converted to his own use approximately $15,420.26 that belonged to the tTribal organization. Notah is also alleged to have used fraudulent expense and stipend claims.

A conviction for embezzlement from a tribal organization carries a maximum penalty of five years, a $250,000 fine or both. In determining an actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the FBI with the assistance and cooperation of the Gila River Indian Community. The prosecution is being handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.

RELEASE NUMBER: 2011-049 (Jackson_Notah)