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Woman sentenced to prison for embezzling funds from St. Croix Chippewa Indians of Wisconsin


MADISON, Wis. (NEWS RELEASE) – A Cumberland woman is sentenced to prison for stealing over $200,000 from the St. Croix Chippewa Housing Authority.

A news release from the Department of Justice announced the sentencing of 55-year-old Karen Johnson of Cumberland, Wis., for wire fraud. She will serve one year and one day in prison, followed by three years of supervised release.

Between 2014 and 2019, Johnson stole over $200,000 from the St. Croix Chippewa Housing Authority, an agency of the St. Croix Chippewa Indians of Wisconsin.

Johnson worked for the agency since 1995 and used her position to write checks for personal expenses. She also created and approved false invoices billing the Housing Authority for work from a contractor. Johnson then wrote checks drawn on Housing Authority funds, forged the contractor’s signature, and deposited the checks into her account.

The St. Croix Chippewa Housing Authority is responsible for providing and maintaining housing for low-income tribal members. It receives more than $1,000,000 each year in grant funding.

At sentencing, Judge William Conley found that Johnson’s conduct was serious because she took advantage of her position within the Housing Authority and deprived other tribal members of financial support.



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