- Details
- By Brian Edwards
- Policy and Law
Federal prosecutors have filed a civil fraud complaint against Arizona-based telecommunications contractors accused of inflating costs and billing for nonexistent equipment on a federally funded broadband project on the Rosebud Sioux Reservation.
The lawsuit, filed March 24 in U.S. District Court in South Dakota, names Paul Brandenburg, Julie Brandenburg and Matthew Brandenburg as defendants and alleges violations of the False Claims Act tied to a federal grant awarded to the Rosebud Sioux Tribe to expand internet access on the reservation.
According to the complaint, the defendants invoiced the tribe for equipment that was never purchased and submitted inflated charges, including for vehicles, generating more than $2.1 million in alleged fraudulent claims tied to the project. The case seeks treble damages and penalties under federal law.
The tribe received the federal grant and contracted the work to the defendants, according to the filing. The case was investigated by the U.S. Department of Commerce’s Office of Inspector General.
The case follows concerns raised by a whistleblower who flagged irregularities in the project before the lawsuit was filed. Tamara Stands and Looks Back-Spotted Tail, who worked in economic development on the Rosebud Reservation, said she reported potential issues with contractors tied to the broadband grant to federal authorities, including the Office of Inspector General, according to Dakota News Now.
Stands and Looks Back-Spotted Tail told the local news outlet she identified red flags during the vetting process, including concerns about contractor qualifications and business records, and warned that the companies involved “don’t meet the qualifications for having somebody to hold this kind of money.”
Federal and state officials highlighted the case during a March 26 press conference in Sioux Falls announcing expanded coordination on fraud enforcement across government programs, including those involving tribal funding.
“Fraud is not a mistake. It is not a technicality. It is not just ‘gaming the system.’ And it is not victimless. It is stealing,” U.S. Attorney Ron Parsons said.
