Sentences issued in Crow Creek trial

Former superintendent earns 10 years for scheme

By Jeff Bunn
Capital Journal staff
Published/Last Modified on Wednesday, Jul 22, 2009 - 07:18:43 pm CDT

PIERRE — Scott Raue, former CEO and superintendent of Crow Creek Tribal School, was sentenced to 10 years in prison and ordered to pay $129,467.70 with another man for a running bribery and kickback scheme at Crow Creek school in 2005 following a dormitory and kitchen fire. Raue will self-report to authorities at 1 p.m. Tuesday.

The sentencing came hours after two others were sentenced for their roles in an financial wrongdoing operation that Judge Karen Schreier linked to a wheel with Raue, 43, at the center.

“This whole scheme was your idea,” Schreier told Raue, who kept his head down as he did through much of his two-and-a-half hour court appearance. “Without you at the hub, this wouldn’t happen.”

Raue, who pleaded guilty in April to one count of bribery, was represented by Stanley Whiting. More than 20 letters were written on Raue’s behalf and approximately 40 people attended the sentencing.

Sobs broke out when Schreier issued the sentence after listening to stories of Raue’s gambling addiction, health problems and his close relationship to two of his children — all of which Whiting asked Schreier to consider before sentencing the former Wayne State quarterback and Riggs High School graduate.

Four people spoke for Raue, including a nephew, a former Crow Creek school board member, a Crow Creek teacher and Dr. Jodi Owen, of psychology, who testified about the harms of separating a primary parent from his children. Raue is raising two of his three children.

But Schreier said the reasons given by Raue for soliciting and taking bribers for contracting work “don’t outweigh the crime.”

“This was a very serious offense that calls for serious punishment,” she said.

Raue addressed the court and wept as he recalled how many people have been damaged by his misdeeds.

Earlier Monday, Craig McClatchey, 57, a Colorado architect was sentenced to three year’s probation and ordered to pay $20,000 in restitution for one count of bribery. And before McClatchey’s

sentencing, local contractor, John Nystrom, was sentenced to two year’s probation and ordered to pay $20,514.64 restitution and a $5,000 fine for misprision of a felony for not disclosing information about another contractor, Edwin Patzer, receiving double payment for work at the school during reconstruction.

Raue, McClatchey and Nystrom join Richard Baysinger, former director of special education; Royal Kutz, a Highmore contractor; and Brady Hastings, the former alternative school principal, as people who have been sentenced for misconduct at the school in a hurried attempt to rebuild the school’s gymnasium in the summer of 2005.

In April, Patzer, 62, was sentenced to 26 months imprisonment, ordered to pay $6,000 restitution, three years supervised release and a $100 fine for theft and bribery. Raue will share the cost of restitution with Kutz, 78. In April, Kutz was sentenced to two years probation, 1,000 hours of community service and ordered to pay $50,000 restitution and a $5,000 fine for one count of bribery.

Patsy Hawk, the former assistant CEO at the school, in May admitted to misapplying school funds. Her sentencing date is set for Aug. 21.

Raue will serve time at a prison that has medical capabilities after the court room heard of his pancreatitis, lung problems from working around asbestos in the burned-down area of the school, high blood pressure and high cholesterol.

Those who worked with Raue and spoke on his behalf described his dedication to his job, the hours he put in to get the gymnasium going and his dedication to the students.

James Caldwell, an industrial arts teacher at the school, said Raue was trusted by staff and students.

“He was the CEO,” said Caldwell.

Caldwell described Raue’s work with teachers and students to meet federal education standards and told of him finding truant students in town and bringing them back to school. Schreier said Raue’s positive impact on the school from 2000 to 2006 was evident but added, “I don’t know where you lost yourself.”

David Zuercher, assistant United States Attorney, did not deny Raue had the trust of the staff, many of the Crow Creek tribal community and many of the students. But he said the prosecution of man who gave Title X dollars to one man, Hastings, in exchange for $5,000 back and extorted contractors for payments needs to be prosecuted.

“I have no hatred for this man,” said Zuercher. “We prosecute public corruption because we want to see taxpayers’ dollars go to their intended purpose.”

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Comments

44 comment(s)

Another former CC Teacher wrote on Mar 8, 2010 12:35 PM:

" While I was there, Scott reveled in the politics of the place from the first day he was there. His attitude was that anything was OK as long as you didn't get caught. It's hard to imagine that anyone could have better known what he was getting into in the Superintendent's position than Scott. And, when he got his last contract, the Council/School board knew what he had done. They gave him the job with the idea that he would use his salary to pay them
back. "

Kirsten wrote on Aug 10, 2009 11:49 AM:

" So what about Patsy Hawk? What was her role? "

JUST ME wrote on Jul 29, 2009 10:44 PM:

" To the Raue family, you guys are good people, hang in there. "

Carter wrote on Jul 25, 2009 8:20 PM:

" Scott we are all here for you, you are like family to us, keep your chin up, when you get out you will have open arms from us. THANKS for everything you have done for us the last 10 years. "

Bubba wrote on Jul 25, 2009 7:59 PM:

" To the person who is (you made yur bed so lie in it) SYSTEM, if their was a SYSTEM why didn't the other people involved get jail time? "

Shelby wrote on Jul 24, 2009 12:32 AM:

" Hopefully someday everyone will know the whole truth about this mess, their are so many 'BIGGER FISH' out there than Raue and they need to be caught and pay for the crime, Raue gets 10 years than they should get LIFE. "

ladychieftain4life wrote on Jul 23, 2009 8:38 PM:

" Raue isn't the only one who hurt the children of cchs. There own tribal members been doing it for years. it's kind of hard to point fingers when you have 10 pointed back at you! Raue just got cought! Hes still a very good man and thats all that matters. "

Know the Man wrote on Jul 23, 2009 6:12 PM:

" Yes I think he should do the time for what he did. I also think that the others were served to lightly in the sentence that they recieved. Oen yes got two year but isn't he also 60 some years old. Another recieved only probation. I do not care what the courts or the rest of you think I think they should have all recieved the maximum of 10 years. This would better show people that you do not take money from any company when it is not yours. "

Mike wrote on Jul 23, 2009 4:41 PM:

" I wish all involved would have got some jail time, we need to set examples so this kind of thing does not happen again. There is far to much of this going on in our country money for money and one way or the other it ends up being our tax dollars being stolen and the cost of these trials for the federal government far ourtway the fines and jail time. "

too critical wrote on Jul 23, 2009 2:00 PM:

" I do not know Scott personally. However I do know the family, and I think we must take a minute and remember he is someones father, son & brother. He is human, he used poor judgement, made a mistake and now he is going to pay dearly for it. Let's not be too harsh here and say things that are going to hurt other people also! Thinking of you Scott and your family! "

Paulette wrote on Jul 23, 2009 11:27 AM:

" The big fish got away!!!!!!!!!!!!! "

RB wrote on Jul 23, 2009 11:06 AM:

" He is not the only one who was sentenced to serve time, was he? I though Patzer got a couple of years too, along with some other guy. I think because Raue was the instigator in the scam and stole this money that he had procured to help the students, perhaps the judge felt he was more culpable. I feel sad for his family, but it this is about paying for your mistakes, not trying to blame it on something or someone else. "

Paulette wrote on Jul 23, 2009 10:36 AM:

" Where is the justice?? It appears that Scott was made an example of this mess. It sounds like the more powerful people got a whole lot less than Scott. Those little children are the ones who lose. I hope more comes out from the one who initially "offered" the scheme. "

Former Pierre resident wrote on Jul 23, 2009 10:32 AM:

" Sad to only one man actually punished for these crimes against the community! None of them should be walking free, and to only severely punish one is a tragedy! Nystrom walks free because he was a upstanding citizen? What is that? I think the system has failed and has given the message that its ok to commit crimes as long as you can afford to pay the fines off. My heart goes our to Mr Raue's children who will pay the ultimate price. Their father was wrong no question! So were they all! "

T wrote on Jul 23, 2009 10:22 AM:

" We all live in glass houses - so one should be very careful when casting stones. So easy to critique others when you aren't the one being critiqued. "

I Disagree with CCTS will survive wrote on Jul 23, 2009 10:02 AM:

" To "CCTS will survive"...I completely disagree with your comment about how it is the children of CC that suffered the most. It was money, people...money! Okay, maybe it will be a little longer for the children of CC to get their gym (or whatever). But it is Raue's own children that will certainly suffer the most! It is their lives that we are talking about. They will be without their sole caregiver for potentially 10 years. Yes, he deserves punishment for his crime, but don't you think this is a little harsh? "

cc member wrote on Jul 23, 2009 8:57 AM:

" All I have to say is Scott Raue is a great man. He has an addiction. He would never hurt anyone intentionally. The only thing hurting these kids down here is the additive parents who dont care about them. Scott cared, he gave so many kids hope when they thought about suicide and quitting school. He turned so many lives around. There was a man run over and killed by a drunk driver and he recieved 30 days in jail because he was intoxicated. Justice?? Addiction?? Law Enforcement needs to be consistant instead of contradicting. "

cctribal member wrote on Jul 23, 2009 8:37 AM:

" To: CCTS will survive; what others are yountalking about? the three council members that were indicted and archie b.? i hope they face Judge Schreier when they get sentenced. maybe they will serve time too. there were only two others that got time besides Raue, the rest got probation,only one left and she will probably get probation too. They should of all got prison time!! "

ME wrote on Jul 23, 2009 3:07 AM:

" Raue got what he deserved. I cannot believe he got any time at all to report to the jail - he was sentenced, should have been taken to jail right away. Yes, he had kids - so do alot of people in prison and jail. Do the crime, do the time. "

crazy wrote on Jul 22, 2009 10:39 PM:

" Gambling is an addiction & he did not chose it over his children. I am sure most of your have seen people with an addiction, they can not control it without help. Take a look around there are addicts everywhere, they can not control their behaviors! I agree how do they expect him to pay it back when he is sitting in jail, would have been much better off making him work to pay it back!I still think the sentence is unfair, while the others are walking around! They should have all owed time! "

CCTS will survive wrote on Jul 22, 2009 10:22 PM:

" I most certainly agree that Raue is the Only one to blame when it comes to WHO took him from his own children!, We all should be more concerned with ALL THE CHILDREN of Crow Creek Tribal Schools. They are the ones who suffered the most. I sure do hope that the Other Greedy people who took money from our children get the same if not more time than raue. When is their next court hearing? anyone know "

DB wrote on Jul 22, 2009 3:55 PM:

" I'd have given Raue a little MORE time in prison. Funny how the children are forgotten until he faced jail time. I'd also have given the rest a little time behind bars to think where their lives are headed. "

to Shunkaska wrote on Jul 22, 2009 2:05 PM:

" Kinda hard for him to pay the tribe back when he's sitting in prison for 10 years now isn't it?? And as for your other comment it is called an addiction he did not choose it over his kids. He would not choose anything over his kids. You may think that it is not an addiction and you can just stop. Well it is not that easy. I know! And for another he did stop gambling and was helping others that are trying to quite. "

Addictions Hurt Our Communities wrote on Jul 22, 2009 1:02 PM:

" I agree that Raue did some good things at CC. And he made some terrible decisions that cost him nearly everything. When one has any type of addiction it's hard for those that don't to make sense of their actions. I believe he and ALL the others involved should have got some time but Raues sentence was over the top. Janklow got less time and he killed someone. There are meth and sex offenders getting 5 yrs or less and their crimes harm our communities in worse ways. No excuse but Raue knows he was wrong. "

onecent wrote on Jul 22, 2009 11:08 AM:

" "The Truth will set you Free" Hopefully it does but Scott should of admitted early and maybe judge wouldn't of been so hard on him. Hope the others get the same treatment. "

Feel sorry for the students wrote on Jul 22, 2009 8:40 AM:

" I feel sorry for the students at Crow Creek, parents should get involved and ask to see the monthly financial reports, maybe incidents like this wouldn't happen. After all they are using our kids for head count.?! This count does fund the school. As we all know we are dealing with crooked individuals throughout the school system. Let's start to hold people accountable, and conduct background investigations on all staff and Board Members!!!! This needs to be done for the future of our children. "

To former CC teacher wrote on Jul 22, 2009 7:45 AM:

" The courts did not take Scott away from his kids. Scott took himself away from his kids. Call it a disease, bad choices, or he just didn't care, his decisions in life has dictated where he will be for the next 10 years. In reality he will probably not have to serve the full 10 years. With good behavior, getting the help he needs with counseling, he could be out in maybe 3 years. Yes it is sad for his kids but only Scott is to blame for that. "

justice wrote on Jul 22, 2009 7:30 AM:

" Why all the TRASHING of one man, their were plenty others, "whats done is done" MOVE FORWARD! This can't be the only attention this Tribe gets, what about all the other WRONG things going on within this Tribe? "

Lavender wrote on Jul 22, 2009 7:09 AM:

" I keep reading different thoughts on this, he has small kids he needs to be with,oh he had a gambling addiction. Well, my thoughts are he wasn't worrying about his children when he was out gambling or doing whatever to get himself in trouble with the law. So get off the sympathy kick, apparently the judge saw through all of this also.
I do believe however, they should have all received prison time, not just him.
You do the crime, you do the time,no matter who you are! "

Shunkaska wrote on Jul 21, 2009 11:05 PM:

" The liberals will look at taking him from his kids,the rest of us see him as a man who chose gambling,extortion over his kids...To me the sentance was fair only if he pays the tribe back anyone want to bet on that...... "

Former CC Teacher wrote on Jul 21, 2009 10:40 PM:

" I am a former teacher at Crow Creek. Raue did a lot of good things for the students and staff at that school that should not be forgotten. Yes he made bad decisions and should have to pay for that, but to take him away from his children for 10 years that is not right. The others involved get a slap on the hand and he basically ends up serving time for all of them. I also can believe he only got 24hrs. to say good-bye to his children, this lady must not have a heart! "

Former CCTS Employee wrote on Jul 21, 2009 10:37 PM:

" I agree with EVERY word from "Just makes me sick". "

a friend wrote on Jul 21, 2009 10:23 PM:

" Correct me if I'm wrong but if it was not for Raue working all hours of the day rebuilding the school the students would not have had a place to go. And I think it was Raue who also brought it to the attention of the councel that the gym was in bad shape and needed to be rebuilt. Raue deserved some time yes, 10 yrs no way. It looks like if you have money and higher up friends you get off easy. What a JOKE "

Xdak wrote on Jul 21, 2009 10:02 PM:

" I agree with "just makes me sick".....Raue should have four to five other roomies on that 10 year stretch. Yeah It's a shame for Scott, but he knew he had children to take care of, but still made the choices he made. Funny how ones addiction can cloud ones judgement so badly. Make the best of your time Scott. Come out a stronger man....you CAN do it!! "

SO SAD wrote on Jul 21, 2009 8:43 PM:

" Mr. Raue was a great person! Yes, he made some poor decisions but, he wasn't alone. I worked with him and know just how stressful his job was, and how everyone wanted things done now. He gets the max. sentence while others get a slap on the wrist it should be the same for them all! Don't give up Mr. Raue, we are all here for you. "

Jenna wrote on Jul 21, 2009 8:11 PM:

" Wow. I know Raue made not just ONE mistake, but MANY. His gambling addiction got him in big trouble. He was the ring leader --that's why he got the most time. Nystrom was not as forthcoming as he could have been...the whole story never comes out.

I'm sad that his children have to go through that. Raue was trusted by MANY people at CC, and they thought he was a good man. Everyone he drug into this mess trusted him. None of them would have done any of those things otherwise. "

you made yur bed so lie in it wrote on Jul 21, 2009 2:32 PM:

" justice is served-yeah it really surprised me he got sentenced to prison-nice to know there is still a system::) "

Concerned wrote on Jul 21, 2009 1:58 PM:

" I know that not one of us are perfect in this world we all make mistakes but you know what we should be learning from them. Gambling is an addiction and we should look at shutting down the casino's around here - I think we need to focus on our younger generation they need us as parents to be there and teach them right from wrong and let them know that it's okay when they make a mistake and that God forgives them like we do. Let's change for the better. "

CCTS wrote on Jul 21, 2009 12:41 PM:

" Caldwell states that "the staff and students trusted Raue!" I hope he is speaking for himself because I am a staff member of Crow Creek and I didn't trust him, nor ever will. "

Sad wrote on Jul 21, 2009 11:05 AM:

" This just saddens me that the judge could not have aleast suspended some of the jail sentence. To take him away from his kids that long is just heartbreaking. "

Just makes me sick wrote on Jul 21, 2009 10:40 AM:

" Where's the fairness in this, Raue gets 10 years and other 2 get off with probation. You know he may be accused of being the leader but everyone else involved are just as guilty for doing it and I guess if one gets jail time they all should get the same. I guess it must pay to lie your way out off stuff. Raue did a lot of good stuff for that school and the kids and he makes one bad choice and gets the book thrown at him. Hang in there bud we are here for you. "

Mother of Crow Creek students wrote on Jul 21, 2009 10:29 AM:

" I'm relieved to read this "trusted" man was given a max sentence, he certainly deserved it. Our children suffered many years WITHOUT our gym, dorms, and a condemned school building because he decided money was more Important than OUR CHILDREN. There were 40 people there supporting Raue but much more here in our community who dont support the damage he has done to our children and community. "

Ridiculous wrote on Jul 21, 2009 10:02 AM:

" I cannot believe this judge only gave him 24 hours to report to the Marshall's office to start serving his sentence. He's got small children, for heaven's sake! That's not enough time to say goodbye. Those poor children! Where's your heart Schreier? Even Kathy Gourley (SF Empire Fair Embezzler) gets until Friday at 5pm. "

justice wrote on Jul 21, 2009 6:58 AM:

" If you were the center of the "HUB" then make all the other "SPOKES" accountable for their actions in this situation. Because now that you scratched there backs, do you think they will scratch yours?????? But you know one thing 4 sure they do not and will not have your back!!!!!! "

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