Crime & Courts

Alaska nonprofit officials plead guilty to felony theft charges

Two former officials of the nonprofit Alaska Inter-Tribal Council have pleaded guilty in federal court in Anchorage to felony charges stemming from theft of the organization's funds.

Prosecutors said Friday that the former executive director of the council, Steven D. Osborne, 44, of Fairbanks, and its former finance director, Thomas R. Purcell, 51, of Anchorage, each pleaded guilty to a single count of theft from an organization receiving federal funds.

Assistant U.S. Attorney Joe Bottini said in a prepared statement that the council got "substantial" federal funding in 2008 and 2009, including a federal grant for more than $1 million from the U.S. Environmental Protection Agency.

The officials had access to bank accounts, as well as debit and credit cards issued by the council, Bottini said.

An investigation found the officials "were able to steal funds through a number of different ways, including cash withdrawals, credit and debit transactions, the submission of false time cards, and unauthorized salary increases," the prosecutor said.

Osborne has admitted stealing at least $5,000 of the council's funds, according to a plea agreement filed April 3. Prosecutors said the total amount Osborne stole would be established at his June 30 sentencing.

A grand jury indictment handed up in August 2013 accused the officials of taking nearly $236,000 and charged that Osborne accounted for the lion's share -- $213,380 between January 2008 and February 2009 when he resigned. He spent the money on a motorcycle, three boats and other personal items, according to the indictment.

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Purcell admitted to stealing $22,720 in council funds, according to a plea agreement and original indictment. The indictment also accused him of funneling nearly $70,000 to Osborne to pay off a council-issued credit card without ensuring the money was spent in accordance with council policy and procedures.

Purcell's sentencing is set for July 1, prosecutors said.

The council has weighed in on behalf of Alaska's tribes statewide on high-profile issues ranging from salmon bycatch and climate change to affordable energy and land rights.

Council officials and the defendants' federal public defender Rich Curtner could not be reached for comment.

Osborne and Purcell face 10 years in prison and fines of up to $250,000, according to the plea agreement. Restitution to the council will be determined at the sentencing hearings.

Jerzy Shedlock

Jerzy Shedlock is a former reporter for Alaska Dispatch News. He left the ADN in 2017.

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