Ex-Tribal CFO Broton Back to Jail for Restitution Scam

GRAND RAPIDS, MICHIGAN – Daniel Lawrence Broton, 56, of Sparta, Michigan, is trading cedar logs for steel bars after being sentenced to 18 months in federal prison. U.S. District Judge Janet T. Neff delivered the sentence today for Broton’s calculated attempt to dodge a hefty $508,392.28 restitution order stemming from a 2006 embezzlement scheme.

Broton, once the financial comptroller and chief financial officer of the Little River Band of Ottawa Indians, previously pled guilty to defrauding the tribe of $500,000 intended for their casino project. That 2006 conviction earned him three years behind bars, but it wasn’t enough to keep him from repeating his offenses. After being released and receiving early termination of his supervised release, Broton launched Backwoods Casual, a rustic furniture company, and promptly started pocketing the profits.

The U.S. Attorney’s Office, relentlessly pursuing the outstanding restitution, requested financial affidavits from Broton in 2013 and 2015. Both times, Broton swore he had no income, no job, and no assets. A bald-faced lie. He’d been running Backwoods Casual since at least 2011, raking in cash while stiffing the victims of his initial crime. A federal grand jury indicted Broton on March 31, 2016, for making false statements, and he eventually pled guilty on July 14, 2016.

Judge Neff didn’t buy Broton’s attempts to portray himself as financially destitute. She pointedly noted his education and professional background, stating his false statements weren’t accidental, but a deliberate attempt to conceal income and avoid paying what he owed. The 18-month sentence represents the maximum allowed under federal sentencing guidelines, a clear signal that such deception won’t be tolerated.

“The U.S. Attorney’s Office relies on financial affidavits to get an accurate picture of a defendant’s financial condition,” stated U.S. Attorney Patrick Miles. “Broton’s sentence should serve as a warning to all defendants who consider making false statements to avoid payment on their criminal monetary obligations. It re-victimizes victims, undermines the court’s judgment, and you will be prosecuted.”

The investigation was a joint effort between the IRS Criminal Investigation and the U.S. Attorney’s Office. “This sentence should serve as a deterrent to those who attempt to evade payment of their court-imposed restitution,” added Manny Muriel, Special Agent in Charge of IRS Criminal Investigation. Assistant U.S. Attorney Joel S. Fauson prosecuted the case. Broton also received two years of supervised release and a $100 special assessment.