February 5, 2010
Ex- Mille Lacs Academy Executive Director
Paul L. Smith
Case Number: CR-08-272-C
PAUL L. SMITH
Paul Lynn Smith, 50, was sentenced on
Thursday by United States Court Judge Robin J. Cauthron to serve 27 months
in prison for embezzlement from an employee benefit plan, fraud and making
false statements to Federal authorities. Judge Cauthron ordered Smith, the
former executive director of the Marie Detty Youth and Family Services
Center in Lawton, Oklahoma to serve two years of supervised release
after his prison sentence. Smith also has to pay $91,689.69
Court documents describe Paul Smith's
elaborate scheme to embezzle money from Head Start's employee benefit
program. Smith created a phantom consulting company and funneled funds to
In 2007, Paul Smith was hired by the Nexus
corporation as their new executive administrator for the Mille Lacs Academy,
a juvenile sex offender facility located in Onamia, MN. According to Nexus
CEO Dave Hutchinson, Smith "led an effort to build a $15 million facility"
in a relocation project which put 94 convicted sex offenders in a
residential neighborhood - next to day-care and elderly widows.
October 17, 2009
UPDATE: Mille Lacs Academy Director
Mille Lacs Academy Director Paul Smith was convicted by a
jury in an Oklahoma Federal District Court in Oklahoma City on Thursday,
October 16. He will be sentenced in January.
October 14, 2009
UPDATE: Mille Lacs Academy Director Trial
Beginning with jury selection on Tuesday, October 13, the
Paul L. Smith, Executive
Director of Mille Lacs Academy is underway at the Western Oklahoma Federal
Court in Oklahoma City; the Honorable Robin J. Cauthron presiding.
Paul Smith is being tried on felony charges including
multiple counts of Theft or Embezzlement from an Employee Benefit Plan, Mail
Fraud; Aiding and Abetting; Fraud and making false statements. Smith is
being represented by criminal lawyers Kendall A. Sykes and Mack K. Martin,
of the Martin Law Office in Oklahoma City. Attorneys representing the United
States of America are Scott E. Williams and Vicki Z Behenna.
Smith allegedly committed crimes while he was Director of
Marie Detty Youth and Family Services Center, a position similar to the one
he currently holds at the Mille Lacs Academy.
June 19, 2009
Mille Lacs Academy Director Indicted
Paul L. Smith,
Executive Director of Mille Lacs Academy was indicted
by a Federal Grand Jury in Oklahoma on June 8, 2009 on charges including
embezzlement, fraud, mail fraud, and making false statements to Federal
If convicted, Paul could face up to 30 years
in prison and $750,000 in fines. His trial is slated to begin on Monday,
July 13, 2009.
You can read about his alleged scams in the
actual court document.
The charges against him are very serious.
According to the Mille Lacs Messenger, Smith claims he is innocent and
claims he'll be exonerated.
Nexus is extending its support of Smith's
innocence until he is proven guilty.
Paul Smith joined the Nexus team in 2007 as
the Executive Administrative Director of the Mille Lacs Academy, a privately
owned facility for juvenile sex offenders. In his letter of introduction to
MLA employees, he sought their assistance in pressuring authorities in order
to gain tax exemption for the institution. He also addressed the problem of
naysayers who opposed sex offenders in their residential neighborhood.
Paul Smith's Letter of Introduction