Former Sault Tribe Chief of Police Convicted of Fraud

MARQUETTE, MI—U.S. Attorney Donald A. Davis announced that Frederick James Paquin, of St. Ignace, Michigan, and formerly the chief of police of the Sault Tribe of Chippewa Indians’ Police Department, pleaded guilty to conspiracy to defraud the United States by dishonest means.

An investigation by the Federal Bureau of Investigation (FBI), the Bureau of Indian Affairs (BIA) and the Department of Justice’s Office of Inspector General (OIG) revealed that Paquin and his Office Manager, Hope H. Schlehuber, at the Tribal Police Department obtained grants from the U.S. Department of Justice in order to fund the Tribal Police Department’s serious unmet financial needs. However, rather than comply with the terms of these grants, Paquin and Schlehuber created elaborate dummy purchases that resulted in payments from these grants to numerous vendors of police equipment and uniforms, where the funds were maintained as “credits” to the Tribal Police Department. These funds were no longer subject to oversight by the Tribal Accounting Department or the Department of Justice once transferred to the vendors under the guise of actual purchases. Paquin was then able to use the funds at any time and in any way he saw fit, regardless of the terms of the grants.

Paquin faces a sentence of up to five years in prison as a result of this conviction. In addition, he will be required to pay restitution to the Tribe and the U.S. Department of Justice. Paquin will be sentenced by U.S. District Judge R. Allan Edgar on December 13, 2010 in Marquette.

Schlehuber was previously convicted of conspiracy to defraud the United States by dishonest means as a result of her involvement in this scheme and was sentenced to 11 months’ home confinement.

FBI Special Agent in Charge Andrew G. Arena commented, “As I have said before, this case was about corrupt government officials who abused their positions for personal gain.” He added that “public corruption is a top criminal priority of the FBI and will not be tolerated. This investigation demonstrates the FBI’s commitment to investigating public corruption on every level and bringing those who betray the public’s trust to justice.”

U.S. Attorney Davis added: “This office will aggressively pursue and prosecute public officials who, like Mr. Paquin, violate their solemn oath and duties. The trust, respect and confidence all citizens place in their governmental institutions is dependant upon the honest and faithful service of governmental employees, including in particular those at high levels of authority such as a chief of police.”