Grand Jury Returns Indictments

MADISON, WI—A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Three Face Bribery Charges in Connection with Contracts Awarded by Ho-Chunk Nation

Timothy G. Whiteagle, 59, Deborah Atherton, 54, and Clarence P. Pettibone, 52, all of Black River Falls, Wis., are charged in a 14-count indictment with bribery in connection with contracts awarded by the Ho-Chunk Nation. Whiteagle is also charged with tax evasion and filing false tax returns, and Pettibone is charged with making a false statement to FBI agents.

The indictment alleges the following:

The Ho-Chunk Nation, an Indian tribal government, operates casinos in the Western District of Wisconsin and annually receives federal grants well in excess of $10,000.

Timothy G. Whiteagle is a Ho-Chunk tribal member. From 2002 to 2009, Whiteagle, at times with the assistance of Deborah H. Atherton, allegedly acted covertly as a behind-the-scenes consultant for clients seeking to do business with the Ho-Chunk Nation. The clients included companies that provided cash access services (such as check cashing and ATMs) at Ho-Chunk casinos, and a company that sought to provide mortgages and housing for tribal members. Whiteagle received over $3 million dollars from the clients.

Clarence P. Pettibone, a tribal member of the Ho-Chunk Nation, served as an elected legislator of the nation. At various times from 2002 to the present, Pettibone served as vice president, as chairman of the legislature’s Finance Committee, and as a member of the legislature’s Development Committee. As an employee and representative of the Ho-Chunk Nation, Pettibone was an agent of the nation. As an elected legislator of the Ho-Chunk Nation, Pettibone was subject to the Ho-Chunk Nation’s Ethics Act. Under the Ethics Act, Pettibone held his position as a public trust, and he had a fiduciary responsibility to the nation to work in the public interest and with a duty to place ethical principles of conduct above personal and private gain.

Whiteagle allegedly gave Pettibone money and valuables, and Whiteagle and Atherton solicited clients wanting Ho-Chunk business to do the same. The alleged valuables included checks; money orders; payments to a martial arts studio operated by Pettibone; a Pontiac Firebird; contributions for Pettibone’s re-election campaign; a job for a relative of Pettibone; golf outings; tickets to an NFL football game; visits to adult entertainment venues; auto body work on a car owned by a relative of Pettibone; and vacations for Pettibone and his family members.

The indictment alleges that Whiteagle and Atherton offered and gave the money and valuables to Pettibone to influence and reward him for helping certain clients do business with the nation; Pettibone knew the money and valuables were given to him to influence and reward him for assisting the clients; Whiteagle and Pettibone consulted with each other about how to use Pettibone’s official position to assist the clients in obtaining and keeping contracts with the Ho-Chunk Nation; and Pettibone, in his official capacity as an elected legislator, allegedly took steps to help the clients do business with the Ho-Chunk Nation, such as scheduling of clients’ proposals on the legislature’s agenda, making motions for the nation to enter into contracts with the clients, delaying legislative action, and opposing proposed contracts between the nation and competitors of the clients.

The charges each defendant faces, and the maximum penalties are as follows:

Count 1—conspiracy to bribe an agent of tribal government—Whiteagle, Pettibone and Atherton—five years in federal prison and a $250,000 fine;
Count 2—causing another to agree to give bribe—Whiteagle—10 years in federal prison and a $250,000 fine;
Count 3—causing another to agree to give bribe—Whiteagle—10 years in federal prison and a $250,000 fine;
Count 4—giving bribe—Whiteagle and Atherton—10 years in federal prison and a $250,000 fine;
Count 5—accepting bribe—Pettibone—10 years in federal prison and a $250,000 fine;
Count 6—causing another to agree to give bribe—Whiteagle—10 years in federal prison and a $250,000 fine;
Count 7—soliciting bribe—Pettibone and Whiteagle (aiding and abetting)—10 years in federal prison and a $250,000 fine;
Count 8—soliciting bribe—Pettibone and Whiteagle (aiding and abetting)—10 years in federal prison and a $250,000 fine;
Count 9—causing another to agree to give bribe—Whiteagle—10 years in federal prison and a $250,000 fine;
Count 10—offering bribe—Whiteagle and Atherton—10 years in federal prison and a $250,000 fine;
Count 11—false statement—Pettibone—five years in federal prison and a $250,000 fine;
Count 12—tax evasion—Whiteagle—five years in federal prison and a $250,000 fine;
Count 13—false income tax return—Whiteagle—three years in federal prison and a $250,000 fine; and
Count 14—false income tax return—Whiteagle—three years in federal prison and a $250,000 fine.

The charges against Whiteagle, Atherton and Pettibone are the result of a joint investigation conducted by the Federal Bureau of Investigation and Internal Revenue Service, with the assistance of the Wisconsin Gaming Commission and the U.S. Department of Interior, Bureau of Indian Affairs, Office of Inspector General. The prosecution of this case has been assigned to First Assistant U.S. Attorney Stephen P. Sinnott.

Wausau Man Charged with Distributing Crack Cocaine

Michael P. Lumbert, 30, Wausau, Wis., is charged with two counts of distributing crack cocaine and one count of possessing crack cocaine with intent to distribute. The indictment alleges that he distributed crack cocaine on November 29, 2010 and January 11, 2011, and that he possessed the drug on January 13, 2011.

If convicted, Lumbert faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Marathon County Sheriff’s Department. The prosecution of this case has been assigned to Assistant U.S. Attorney Paul W. Connell.

Chicago Man Charged with Distributing Marijuana

Albano Xhixha, 21, Chicago, is charged with distributing marijuana on June 13, 2011.

If convicted, Xhixha faces a maximum penalty of five years in federal prison. The charges against him are the result of an investigation by the Drug Enforcement Administration and Wisconsin Department of Justice, Division of Criminal Investigation. The prosecution of this case has been assigned to Assistant U.S. Attorney David J. Reinhard.

Madison Woman Charged with Filing False Tax Returns

Ashley L. Heim, 29, Madison, Wis., is charged with three counts of filing false income tax returns. The indictment alleges that Heim filed individual income tax returns in which she falsely claimed federal income tax had been withheld in 2006, 2007 and 2008. The indictment alleges that she claimed $2,378 in federal income tax had been withheld in 2006, when only $78.16 had been withheld, and that $5,546 and $4,250 in federal income tax had been withheld in 2007 and 2008, respectively, when no tax had been withheld.

If convicted, Heim faces a maximum penalty of five years in federal prison on each count. The charges against her are the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. The prosecution of this case has been assigned to Assistant U.S. Attorney Rita M. Rumbelow.