Friday, January 6, 2017

Tribal Leaders Indicted By The Feds

It will be interesting to follow this case and see how far shouting "tribal sovereignty" gets them.

Any of this sound familiar?

Red Bluff Daily News - Ex-Nomlaki tribal officials indicted on federal charges

Excerpt:

A federal grand jury returned a 69-count indictment Thursday against three former officials of the Paskenta Band of Nomlaki Indians, charging them with conspiracy to embezzle tribal funds, embezzlement of tribal funds, making false statements to federal agents and tax charges.

The indictment against John Crosby, 53, of Redding, Ines Crosby, 73, of Orland, and Leslie Lohse, 62, of Glenn County, was announced in a press release issued by Phillip Talbert, U.S. attorney for the Eastern District of California.

The tribe operates the Rolling Hills Casino located on tribal land near Corning.

The indictment alleges that between January 2009 and May 2014, the defendants, who had access to tribal funds, embezzled at least $6 million of that money for their own personal expenses. They allegedly sought to conceal the embezzlement by creating a false line-of-credit document and remotely accessing the tribe’s computers to destroy evidence. John Crosby and Lohse are accused of submitting tax returns that omitted the embezzled funds, while, Ines Crosby failed to file any tax returns.

The three were among four members of the tribal council were ousted by tribal membership in April 2014, which culminated in a prolonged armed standoff at the casino in June 2014, the destruction of computer records and the disappearance of a private jet owned by the tribe.

Read the full article at the link above

More:

sacbee.com- Former tribal leaders indicted on charges they looted $6 million from Corning’s Rolling Hills Casino

BY SAM STANTON
sstanton@sacbee.com
 My feed
Three former officials of the tribe that owns the Rolling Hills Casino in Corning were indicted Thursday on charges they embezzled at least $6 million from the tribal coffers and used the money to purchase cars, international junkets, gold coins and landscaping for their homes with such features as koi ponds and a putting green.

The 69-count indictment by a federal grand jury in Sacramento alleges that John Crosby, the tribe’s onetime economic development director; Ines Crosby, his mother and the former tribal administrator; and Leslie Lohse, Ines Crosby’s sister and the former tribal treasurer, engaged in a sweeping conspiracy to loot the tribal bank accounts, then lied to FBI agents investigating the matter.

The indictment follows years of controversy involving the tribal government and the casino. Warring factions in the tribe at various times engaged in an armed standoff outside the casino, went to court over control of the casino and endured a cyberattack that destroyed computer records – one that the indictment blames on the three defendants.

The dispute also included a lawsuit claiming wrongdoing under the federal Racketeer Influenced and Corrupt Organization Act that named the defendants and more than a dozen others.

Read the full article at the link above

Also:

Tribe, Bank Rebuked Over Embezzlement Suit Discovery Row

By Christine Powell

Law360, New York (December 9, 2016, 4:09 PM EST) -- A California federal magistrate judge on Thursday called behavior during a discovery dispute between the Paskenta Band of Nomlaki Indians and a bank it has asserted claims against in its lawsuit accusing former tribal officials of a sprawling embezzlement scheme "unacceptable."

The Paskenta Band of Nomlaki Indians alleged that Cornerstone Community Bank, CEO Jeffrey Finck and parent company Cornerstone Community Bancorp aided and abetted ex-tribe leaders in misappropriation, and that the bank and its parent company are liable for breach of contract.

Read the full article at the link above



19 comments:

Anonymous said...

This is exactly what is going to happen to Robert.

Anonymous said...

I guarantee it's in the works as we speak..other than smith and Nieto though I am not sure who else is named.

Anonymous said...

Hopefully soon we will be reading this same article with the title "EX-Tribal Officials of Pala Indicted on Federal Charges" That will be the best day ever.

Anonymous said...

I hope you Pala members realize that if the feds bring indictments for tax fraud the money Smith stole from PBMI will go to paying off any tax debt, legal fees, investigation costs, and miscellaneous before it trickles down to the Band.

It would be the right thing to do though since the feds have incurred the costs of nailing the corrupt Chairman instead of the members, if indeed the long investigation actually does result in indictments. I suppose it doesn't matter anyway because the members kissed that money goodbye a long time ago.

Anonymous said...

I hope that Theresa Nieto does get an indictment against her and I also hope and pray that she losses everything, including her husband
and all of the property that they have bought and paid for with Tribal funds. Robert Smith being indicted is a no brainer.
I just hope that it happens real soon before he has a chance to hide anymore of the funds that he steals.
He deserves life without Parole for what he has done to the Pala Band of Mission Indians.
Please FEDS hurry up and serve the indictments on Smith and Nieto.
They are planning to skip the country and move to Ireland.

Anonymous said...

@ 1:15 PM, A source close to the indictments said that they are waiting for some information on Roberts wife and it should be completed in around 7-10 days.
Something to do with some property in Bonsall and using a fake name.

Anonymous said...

They need to look into the Leslie Lohse, California Tribal Business Alliance (CTBA), and Robert Smith connection.

Anonymous said...

Oh yeah, investigate Lohse and how about Rumsey and Lytton, and add about five years to the investigation. That's a great idea!

Anonymous said...

What ever it takes to bring down the thieves. Do it!

Anonymous said...

In five years there will be nothing left but embers. The Pala EC is sucking the life out of the PBMI. They enjoy doing it. They are getting a great amount of wealth and pleasure out of stealing the money, enticing tribal members to help them, dividing families, soliciting murders, and making a joke out of economic development.

What will be left after five years? A membership roll with a majority of members who have no connection to Pala rather than helping the EC steal the money. A Casino Resort that is so rundown that no one wants to go there because the EC refuses to refurbish. A cemetery full of murdered members. An EC so wealthy that they can buy yachts and travel with Howard Dickstein around the world for the rest of their lives. A Band so comprised that they believe the lies of the leaders that have destroyed them and piss on the graves of their ancestors.

See you in five years...

Anonymous said...

You know Robert, there is a way out of all of the heartaches that your family will face when you ARE indicted for your crimes.
This "out" will only be available for a short time.
If I were you I would take the "OUT" and save your family the heartaches of your greed.
The out is, Kill your corrupt ass yourself by committing suicide by
hanging or shoot yourself in the head.
Go out like a real man.

Anonymous said...

He is to much of a pussy to commit suicide.
He can't even wipe his own ass or button his own pants.
So he might need a little help setting up a suicide.
Anyone want to help?

Anonymous said...

@ 2:05 PM
Yes, only about 600 members would be glad to help him out.

Anonymous said...

You know, with all the complaints that have been filed with the FBI, Internal Revenue, the gaming commission, and local Enforcement, one would think that the Indictments would not take so long.
But I guess we will see what happens.
Hope and prayers are all we have left.

Tired of their shit said...

All I can say is Robert Smith and Theresa Nieto are damn lucky that they haven't fucked with any of my family members.
If they ever do they would be long gone and they know it.
I just don't understand why no one has even laid a hand on either one of them for all the shit that they have caused in Pala.
That's why they do the things that they do, because they know no one will dare try and stop them.
However if they go ahead with their plans to go after the Morro and the Guchino family's, they will be stopped in their tracks.

Anonymous said...

Better check with Cornerstone Community Bank in Carlsbad and verify
Robert Smiths and Theresa Nieto's accounts.

Unknown said...
This comment has been removed by the author.
Anonymous said...

Fired them or what your vote don't have a voice!?

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