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March 21, 2008

Feds indict former tribal governor

A former Passamaquoddy tribal governor was indicted Wednesday by a federal grand jury for mismanaging federal funds, including allegedly giving thousands of dollars in federal tribal money to family members and friends.

Federal prosecutors indicted Robert L. Newell of Indian Township on 30 charges, including conspiracy to defraud and making false statements, and the township's former finance director, James J. Parisi, on 21 co-conspiracy charges, according to a press release from the U.S. Department of Justice. Newell was governor of Indian Township from 2002 to 2006, and Parisi worked for the township from 2003 to 2006.

The 29-page indictment alleges the men diverted $1.7 million in federal funds away from their intended programs, and includes charges that thousands of dollars were paid illegally to Newell's family members and senior officials including Newell himself, according to Blethen Maine Newspapers. Nine of Newell's charges each carry a maximum jail sentence of 10 years. Newell and Parisi are scheduled to be arraigned March 28 in U.S. District Court in Bangor.

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