St. Croix Chippewa Indians of Wisconsin — Housing Authority
Outcome
Duane Emery, 65, former director of the St. Croix Chippewa Housing Authority, was sentenced to one year and one day in federal prison for embezzling over $150,000 from the tribal housing authority over four years by fraudulently obtaining checks under the pretense of paying credit card bills.
Details
St. Croix Chippewa Indians of Wisconsin — Housing Authority Director Embezzlement (2015–2019)
Outcome: Duane Emery, 65, former director of the St. Croix Chippewa Housing Authority (a HUD-funded tribal housing program in Wisconsin), was sentenced to one year and one day in federal prison and ordered to pay restitution for embezzling over $150,000 from the housing authority over four years.
Emery served as the director of the St. Croix Chippewa Housing Authority from 2011 until his termination in 2019. Between 2015 and 2019, he used his position to obtain checks drawn on Housing Authority funds by falsely representing that the checks were needed to make payments on a credit card maintained by the Housing Authority. These fraudulently obtained checks were instead converted to Emery's personal benefit.
Emery pleaded guilty on October 17, 2023, to wire fraud. U.S. District Judge William M. Conley sentenced him on January 23, 2024, to one year and one day in federal prison. At sentencing, Judge Conley noted that Emery's sustained criminal embezzlement warranted imprisonment and specifically observed that his lack of supervision enabled other employees to steal as well — a systemic oversight failure that extended beyond Emery's own conduct.
The case was investigated by HUD's Office of Inspector General and prosecuted by the U.S. Attorney's Office for the Western District of Wisconsin.
Primary Source: Webster Man Sentenced To Prison For Embezzling Funds From St. Croix Chippewa Indians of Wisconsin
How Crucible Prevents This
Emery's method — obtaining checks by falsely claiming credit card payments were needed — is a classic control bypass that exploits a single point of authority. Crucible's bank-statement reconciliation hook matching check issuance records against actual credit card account activity would have immediately detected fraudulent credit card payment checks. A dual-authorization control requiring two signatures on checks above a threshold amount would have required a co-conspirator, dramatically raising the risk. The sentencing judge noted that Emery's lack of supervision also enabled other employees to steal.
Don't let this happen to your organization. See how Crucible works.
See How Crucible Works