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Laurel couple denies bankruptcy fraud charges

By The Associated Press
Published On: Dec 20 2013 12:37:41 PM MST
BILLINGS, Mont. -

 A Laurel couple charged with embezzling federal stimulus money from the Chippewa Cree Tribe has denied new allegations of bankruptcy fraud.

42-year-old Tammy Kay Leischner and 46-year-old Mark Craig Leischner pleaded not guilty Thursday to a federal indictment charging them with bankruptcy fraud and making a false bankruptcy declaration.

The indictment alleges that the Leischners' 2012 bankruptcy petition did not include $800,000 in gross income they and a business received in 2010 and 2011. Prosecutors say they also failed to disclose all bank accounts they had or had closed within a year of filing for bankruptcy.

The Leischners, along with three others, face a Feb. 3 trial on conspiracy and other charges alleging they funneled to themselves stimulus money meant to build a water pipeline.