PAGO PAGO, American Samoa (AP) -- An American Samoa couple has been accused of stealing nearly $400,000 from a low-income housing project to pay off credit cards, fund their other businesses and pay for their condo in Hawaii.
John Emil Kruse and his wife, Elaine Gurr Kruse, are scheduled to enter their pleas and be sentenced Thursday in Washington, D.C., since there is no federal court in American Samoa.
Court documents say the couple received more than $850,000 in U.S. Treasury Department funds to build an eight-plex for low-income renters. But prosecutors say the project stalled, and the couple used the money to fund other businesses and paid off credit cards.
The government wants them to each serve a year in prison. Defense attorneys seek probation or home confinement, and say the couple will make restitution.