Key figure in "Dairygate" receives six indictments. Ahh, the noose is tightening!

Courtesy of Alaska Dispatch:

Kyle Beus, co-founder and co-owner of Valley Dairy, which does business as Matanuska Creamery, is facing accusations he steered money meant for the dairy operation into his own hands. A six-count indictment filed Tuesday in U.S. District Court in Anchorage charges Beus with wire fraud and false statements used to obtain grant disbursements from the U.S. Department of Agriculture. 

He's accused of pocketing at least $120,000 for his own "personal and discretionary use unrelated to the construction and management of the dairy processing facility," but details enumerated in the indictment suggest the amount may be tens of thousands of dollars higher. 

The government alleges Beus abused his status and relationships with several interrelated companies to facilitate the fraud scheme. Simplified, as a dairy manager with the authority to oversee disbursement of federal grants, prosecutors say Beus used grant-awards and contracted companies as a conduit by which to draw and request cash that was never applied toward the dairy's operations. In some cases, none of the money went toward the dairy's operations. In others, some, but not all of the money drawn was properly used. 

In the indictment, Beus is accused of carrying out the scheme by sending false or inflated invoices in support of his funding requests. 

It's a new twist in a long saga that began with the demise of the state-subsidized and now defunct Matanuska Maid Creamery. Under the watch of then-Alaska Gov. Sarah Palin, the dairy was dissolved, a highly controversial move, and its assets disposed of. Beus was able to pick up the old equipment at a deep discount to launch his fledgling Klondike Creamery and Candy. By 2008, Valley Dairy was born – a joint effort between Beus, Robert Wells and Karen Olson. 

The Rural Development Agency of the U.S. Department of Agriculture was authorized to appropriate $5 million over years 2003-2007 to expand Alaska's dairy industry. Later, an extension was given by Congress to keep $650,000 available until expended. 

In summer 2007, Beus received $168,000 of that money for his cheese and ice cream making facility. A month or two later, an unnamed corporation in Alaska received $475,000 to support a milk manufacturing facility. According to the federal indictment, it is from these two grant awards that Beus fraudulently sought and received disbursements meant for the dairy operation. 

 Ooh you know the milk is curdling in a certain Wasilla Refrigerator now!

Here is my favorite part of the article.

Prosecutors say the investigation is ongoing.

Palin is the one that helped orchestrate the sale of Mat Maid to Beus, even though he had defaulted on a previous loan and was under investigation. Essentially Palin's prints are all over this thing, and I have a hard time imagining how she will walk away unscathed.

For those who want to connect the dots here is TPM's post from August 2008, Halcro's post from February 2009, and Regina's post from March 2010.

Dairygate floats back onto the horizon.

Courtesy of Mat-Su Frontiersman:

The Alaska State Commission for Human Rights has ruled that discrimination and wrongful termination complaints filed against Matanuska Creamery by two former employees have merit.
Former creamery office administrator Kay Schaugaard and former pasteurizer Amy Moore, who are both Mormon, allege company co-owner and Chief Financial Officer Karen Olson made disparaging remarks about Mormons and not wanting “any more (expletive) Mormons” working for the company. They also claim co-owner Kyle Beus did not take their discrimination complaints seriously before they were fired more than two years ago.

Schaugaard, who hasn’t bought creamery milk since she was ordered to leave the premises Dec. 5, 2008, said Monday she strongly suspects her termination is directly related to her allegations that company executives misspent federal funds.

Schaugaard said Monday the Federal Bureau of Investigation is conducting an investigation into the alleged funds misuse. When contacted earlier this year, the FBI would neither confirm nor deny such an investigation exists, as is its policy.

“Some of the financial transactions that I was in the process of researching were extremely suspicious,” Schaugaard said Monday. “I couldn’t track where the grant money had been deposited. Kyle Beus and Karen Olson would not give me the data I needed or the answers I needed to make sense of their finances.”

After a 22-month investigation, the Alaska State Commission for Human Rights ruled last week that Schaugaard and Moore have a legitimate case against the company for religious and sexual discrimination.

I have to say that one of the most frustrating parts of watching the slow disintegration of Sarah Palin's reputation, and the end of her political aspirations, is the federal piece.  The Feds simply do NOT move very quickly, and even if there are some slips which alert you to an investigation, NOBODY will tell you anything about it.

However I will say that, if my sources are correct, THIS is not the only Federal investigation which might bite half term celebrity Governor Sarah Palin, and her administration, in the ass.

But don't worry Palin-bots.  All your Queen has to do is add a scene to her propaganda film "The Undefeated" of her running into a burning barn and rescuing still smoldering cows, while her hair and makeup remain completely untouched, to convince the public that she is innocent of any wrongdoing in this case.

BTW if you want the very BEST roundup of the pertinent details about Dairygate, just head right on over to Palingates and let Regina bring you up to speed.