Former Paskenta Tribal Leaders Sentenced To Prison

Source:

Department of Justice U.S. Attorney’s Office Eastern District of California - Former Members of Tribal Leadership Sentenced for Multimillion Dollar Embezzlement Scheme

SACRAMENTO, Calif. — Three former leaders of the Paskenta Tribe of Nomlaki Indians were sentenced today for a conspiracy to embezzle or steal from a tribal organization, as well as tax fraud and tax evasion offenses, U.S. Attorney Phillip A. Talbert announced.

U.S. District Judge John A. Mendez sentenced John A. Crosby, 56, of Redding, to four years and nine months in prison and to pay a $10,000 fine; Ines S. Crosby, 76, of Orland, to four years and nine months years in prison; and Leslie A. Lohse, 67, of Glenn, to three years and five months in prison. Lohse has paid $902,208 in restitution prior to today’s sentencing hearing. A hearing will be held on April 19, 2022, to determine the amount of restitution John Crosby and Ines Crosby will pay.

According to court documents, from approximately January 2009 through May 2014, the defendants took millions of dollars from the Paskenta Tribe of Nomlaki Indians without tribal or legal authority, taking advantage of their positions on the Tribal Counsel and in prominent leadership positions in the tribe.

Continue Reading Here -- Department of Justice U.S. Attorney’s Office Eastern District of California - Former Members of Tribal Leadership Sentenced for Multimillion Dollar Embezzlement Scheme

Former Paskenta Tribal Leaders Found Guilty

Hat tip to the commenter who pointed out this article.

Paskenta tribal leader: Guilty pleas are 'vindication' for Tribe after millions stolen

Excerpt:

The defendants are the former Tribal Economic Development Director, John A. Crosby, 56, of Redding; the former Tribal Administrator Ines S. Crosby, 76, of Orland; and the former Tribal Treasurer Leslie A. Lohse, 64, of Glenn.

The trio pleaded guilty Thursday in federal court, to charges of conspiracy to embezzle or steal from a tribal organization, as well as tax fraud and tax evasion offenses.

“The defendants used the Tribe’s accounts as their personal piggy banks,” said Kareem Carter, Special Agent in Charge, IRS Criminal Investigation. “For at least five years the defendants took more than $4.9 million of the Tribe’s money and intentionally failed to declare it as income to the IRS. This resulted in a tax loss of over $1.6 million.”

Read the full article at the link above

Indictments of Paskenta Officials - Any of This Sound Familiar?

Below is a link to another article on the indictments of John Crosby (former FBI Agent), Ines Crosby (his mother), and Leslie Lohse (hist sister).  Lohse was at one time the treasurer of the California Tribal Business Alliance which Robert Smith is Chair of.  I recommend reading the whole article but I will post an excerpt:

Gross & Klein LLP: Federal Jury Indicts Two Former Paskenta Tribe Employees on Embezzlement Charges

Excerpt:

As detailed in the Tribe's related civil federal Racketeer Influenced and Corrupt Organization Act (RICO) complaint filed in March 2015 in the U.S. District Court,  Eastern District of  California, against John Crosby, Ines Crosby, Leslie Lohse, and others, they and their co-conspirators used vicious and callous methods of intimidation and coercion to maintain access to the Tribe's money, millions of which they stole in order to live a life of obscene luxury, while services to Tribal members went unfunded and Tribe members lived in fear of economic retaliation.
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Any of that sound familiar?

Read the whole article at the link above.

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

Paskenta Affirms New Leadership

sys-con.com Paskenta Band of Nomlaki Indians Announces Results of Election for Tribal Council Mandated by Settlement Agreement Between Tribal Factions

Election ends leadership dispute after all Tribal members agreed to recognize results

BY PR NEWSWIRE

CORNING, Calif., Sept. 13, 2014 /PRNewswire/ -- Following a record election turnout, with over 92 percent of all adult Tribal members participating, the Paskenta Band of Nomlaki Indians announced today the results of its Tribal Council election.

The members of the Tribe overwhelmingly elected four members of the Tribal Council which include: Latisha Miller – Vice-Chairperson, Andrew Alejandre – Secretary, Ambrosia Rico – Treasurer, and Natasha Magana – Member-at-large. The Chairman of the Tribe, Andrew Freeman, who is recognized by both groups who participated in the election, holds a term that ends in September 2016. The election ends the leadership of Leslie Lohse and her family's control over the Rolling Hills Casino and other tribal assets. The certified results of the election were: 138 votes for the winning slate, and 61 votes for the slate led by Lohse.

"I'm so pleased that the Nomlaki People had such strong voter turnout and exercised true democracy by electing its Tribal leadership," said Chairman Andrew Freeman, who was supported by both groups running for Tribal Council.  "This is a new era of Tribal leadership that promises financial integrity in its governance and financial transparency to all Tribal members to ensure all can share in the benefits of the various Tribal Enterprises."

Read Full Press Release Here-->sys-con.com Paskenta Band of Nomlaki Indians Announces Results of Election for Tribal Council Mandated by Settlement Agreement Between Tribal Factions

Other Articles:

chicoer.com Paskenta tribe votes to keep new leaders

sacbee.com Embattled Northern California tribe elects four members to tribal council

***WARNING*** 

Chairman Robert Smith, Chairman of the Pala Band of Mission Indians, Pala Band of Luiseno Indians, Pala Band of Luiseno Mission Indians of the Pala Reservation, is monitoring your comments.  He is going to track your IP address and "take action" against any tribal member posting comments he does not like.

Paskenta

Paskenta Band of Nomlaki Indians audit alleges millions in mismanagement

Excerpt:

The audit, conducted by WilmerHale, a Washington, D.C. law firm, found that former council leaders "have fallen far short of their legal and ethical obligations to the tribe" by incurring expenses that include $17 million in private jet travel, $450,000 for tickets to the World Series, college basketball's Final Four and other sporting events, the Bee reported.

"Although the senior tribal administrators claimed that most of their spending was for reasonable business purposes, our inquiry suggests that serious questions exist about whether substantial amounts of tribal funds were actually spent for the senior tribal administrators' personal benefit," the Bee quotes from the audit report.

Read Full Article Here-->Paskenta Band of Nomlaki Indians audit alleges millions in mismanagement

***WARNING*** 

Chairman Robert Smith, Chairman of the Pala Band of Mission Indians, Pala Band of Luiseno Indians, Pala Band of Luiseno Mission Indians of the Pala Reservation, is monitoring your comments.  He is going to track your IP address and "take action" against any tribal member posting comments he does not like.

Paskenta Completes Audit

I recommend everyone read the entire article.  I will post a couple of excerpts here.

Audit finds Corning tribe mismanaged millions in casino funds

By Sam Stanton
sstanton@sacbee.com
Published: Tuesday, Sep. 2, 2014 - 10:17 pm
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The document, which was obtained by The Sacramento Bee and secured with a program that prevented it from being printed out or copied, details spending by council officials that raised questions about home improvements; at least one trip to Disneyland; trips by Lohse to watch her son Kyle pitch in the 2011 World Series for the St. Louis Cardinals; purchase of floor-level Sacramento Kings season tickets and tickets to the 2010 Masters golf tournament; and other items.

“Although the senior tribal administrators claimed that most of their spending was for reasonable business purposes, our inquiry suggests that serious questions exist about whether substantial amounts of tribal funds were actually spent for the senior tribal administrators’ personal benefit,” the audit states.

The auditors added that because of poor or, in some cases, nonexistent bookkeeping records and the refusal of some officials to cooperate with the audit, it is difficult to determine with accuracy the state of tribal spending.

However, the audit found a number of expenses that raised questions, including:

•  $93 million in investments over the last 12 years in companies, real estate or gold that were made without any comprehensive investment strategy. “Many of these ventures were unproven, high-risk, start-up companies,” the audit said. Crosby flatly rejected that finding. “A lot of these investments are long-term,” he said. “Was Apple successful right away?”

•  Excessive overhead and compensation over the last dozen years that ate up at least $61 million of the $191 million left over after tribal members were paid their distributions. (The audit said reviewers were unable to account for about $10 million in spending).

•  Payments of $819,000 to senior administrators for serving on the boards of tribal entities that the audit said were made without tribal council discussion or approval.

•  A penchant for travel that included using the private jet for dozens of short hops between Chico and Redding or Corning and Sacramento, instead of driving at much less expense. Other trips “appear to have been partially or wholly personal,” the audit found, including 134 flights to Glendale, Ariz., by the Lohse family over a 32-month span (a Lohse son and his family live in Glendale, the audit said); and 40 flights by the Crosby family to Provo, Utah, over a 28-month period (Crosby’s daughter attended college in Provo, the audit said). Crosby said frequent trips are the nature of economic development efforts and that they were for business interests.

Read Full Article Here -->Audit finds Corning tribe mismanaged millions in casino funds

***WARNING*** 

Chairman Robert Smith, Chairman of the Pala Band of Mission Indians, Pala Band of Luiseno Indians, Pala Band of Luiseno Mission Indians of the Pala Reservation, is monitoring your comments.  He is going to track your IP address and "take action" against any tribal member posting comments he does not like.

Paskenta Elections To Settle Dispute

Article Excerpts:

http://www.modbee.com Warring factions in Corning casino tribe agree to election to settle dispute

BY STEPHEN MAGAGNINI

After weeks of armed standoffs, cyber attacks, allegations of multimillion-dollar theft and legal battles over who controls the tribe’s $100 million-a-year casino, warring factions of the Paskenta band of Nomlaki Indians in Tehama County have agreed to a binding general election to settle their dispute.

A federal judge in Sacramento signed off Monday on the landmark agreement, which came after a marathon three-day mediation that included 12 consecutive hours of negotiations at one stretch, said Andy Freeman, who is recognized as tribal chair by both factions. “The mediation went well. It gave us the opportunity to talk to each other and see both sides,” Freeman said. “The bottom line is the whole tribe needs to talk.”

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The dispute centered on allegations by Freeman and other council members that Tribal Economic Development Director John Crosby, a former FBI agent, misappropriated $1.4 million from tribal accounts to pay for his house, swimming pool, basketball court and remodeling work, along with several cars and $209,000 worth of gold. Tribal Treasurer Leslie Lohse, one of the ousted council members, was accused of embezzling money and misusing the tribe’s jet to attend her son Kyle’s professional baseball games.

Freeman produced canceled checks to support his allegations of wrongdoing. Crosby and Lohse, in turn, supplied employment contracts indicating they were each granted $5 million lines of credit “to either be paid forgiven or extended” after 2020 if they negotiated a new gambling compact with the state. Both said they’ve acted in the tribe’s best interests.

Read Full Article Here -->http://www.modbee.com Warring factions in Corning casino tribe agree to election to settle dispute 

Leslie Lohse is Chair of the California Tribal Business Alliance (CTBA).  Robert Smith is CTBA's Treasurer.  Pala is one of the Three Tribes that make up the California Tribal Business Alliance along with Paskenta and Viejas.


***WARNING***

Chairman Robert Smith, Chairman of the Pala Band of Mission Indians, Pala Band of Luiseno Indians, Pala Band of Luiseno Mission Indians of the Pala Reservation, is monitoring your comments.  He is going to track your IP address and "take action" against any tribal member posting comments he does not like.

California Continues With Its Push to Keep Guns Out of Paskenta Dispute

redbluffdailynews.com State seeks to keep guns away from Rolling Hills Casino

RED BLUFF >> The State of California on Monday filed a request in federal court for a preliminary injunction against the Paskenta Band of Nomlaki Indians that essentially maintains the status quo of the temporary restraining order previously issued by a federal judge that has kept armed security forces away from Rolling Hills Casino in Corning.
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Excerpt:

Ousted members led by tribal Vice Chairman David Swearinger, treasurer Leslie Lohse, secretary Geraldine Freeman and member-at-large Allen Swearinger have previously said that shutting down the casino would bring a speedy resolution to the tribal dispute.

Members of the tribe led by Chairman Andrew Freeman, Vice Chairwoman Latisha Miller, treasurer Ambrosia Rico, secretary Andrew Alejandre and member-at-large Natasha Magana argue that shutting down the casino would put its employees out of work and "devastate the local economy," according to the state's preliminary injunction request filed Monday.

The preliminary injunction request seeks to keep the casino operating as it currently does, and keep firearms and armed personnel away from the tribe's properties.

Read Full Article Here --> redbluffdailynews.com State seeks to keep guns away from Rolling Hills Casino

Leslie Lohse is Chair of the California Tribal Business Alliance (CTBA).  Robert Smith is CTBA's Treasurer.  Pala is one of the Three Tribes that make up the California Tribal Business Alliance along with Paskenta and Viejas.

***WARNING***

Chairman Robert Smith, Chairman of the Pala Band of Mission Indians, Pala Band of Luiseno Indians, Pala Band of Luiseno Mission Indians of the Pala Reservation, is monitoring your comments.  He is going to track your IP address and "take action" against any tribal member posting comments he does not like.

California Sues Paskenta

Lots of news breaking relating to Paskenta.

Here are the headlines:

appeal-democrat.com State files suit against tribal factions

Chicoer.com - State sues Paskenta Nomlaki, seeking retaining orders; cites threat to health and safety

krcrtv.com Sides react to state lawsuit against Paskenta tribe

krcrtv.com The cost to keeping the peace at Rolling Hills Casino

krcrtv.com Federal judge issues restraining order in tribal dispute

courthousenews.com Tense, Armed Standoff at Indian Casino

redbluffdailynews.com Kiley Willard: Observations on tribal split

In Depth Article:

indiancountrytodaymedianetwork.com Epic Paskenta Dispute Continues Despite BIA Cease and Desist Letter

***WARNING***

Chairman Robert Smith, Chairman of the Pala Band of Mission Indians, Pala Band of Luiseno Indians, Pala Band of Luiseno Mission Indians of the Pala Reservation, is monitoring your comments.  He is going to track your IP address and "take action" against any tribal member posting comments he does not like.

Paskenta - After 11 Years, Justice

I was sent this article below.  It is a print version of an article that appeared in the Sacramento Valley Mirror.  There does not seem to be an online version.  It is an embedded pdf file that can be downloaded, printed out, or just enlarged by clicking on the magnifying glass near the bottom of the post.  You can also  toggle to full screen view by clicking the square on the right hand side at the bottom of this post which will help be able to read it.

Paskenta - After 11 Years Justice

Also in the news:

Leslie Lohse was one of the Council Members that was removed from office.  She was Treasurer.  She is also Chair of the California Tribal Business Alliance (CTBA) (http://www.caltba.org) of which Pala is a member.  Robert Smith is the treasurer for CTBA.

Paskenta tribe shuns members, investigates missing funds

Excerpts:

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"Also during the meeting, Leslie Lohse, Tribal Council treasurer, and member of the suspended family, was dismissed off the Tribal Council by the General Council, Rico stated."

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Rico claims that a more recent letter from the gaming commission said it is classifying the dispute as an internal tribal affair, and at this time will leave the problem for the tribe to rectify.
“We are still in compliance with all required federal and state regulations,” she stated.

Read Full Article Here - Paskenta tribe shuns members, investigates missing funds

Leadership and Membership Changes at Paskenta Band of Nomlaki Indians

The Paskenta Band of Nomlaki Indians is a member of the California Tribal Business Alliance.  The other two member tribes are Pala and the Viejas Band of Kumeyaay Indians.  The Chair of CTBA is Leslie Lohse who is also treasurer of the Paskenta Band of Nomlaki Indians of California.

Seems there has been a shakeup at Paskenta.  Some were disenrolled.  Their entire council was removed except Chairman Andy Freeman who is keeping his position.

Action News Now - A major shake-up has taken place within the tribe that owns Rolling Hills Casino in Corning

Excerpt:

A little more than 100 members showed up for the meeting (April 12th), but nearly half, including one tribal leader, were asked to leave by Tribal Chair Andy Freeman.

“It bothered him and a lot of things were brought to his attention and he acted on it,” said Tribe Treasurer Ambrosia Rico.

What bothered Freeman is that there were members of the “Henthorne/Pata” family not meeting the criteria for tribal membership.

The criteria is to have direct ancestral lineage to the Paskenta Band of Nomlaki Indians.

Other current tribal members and operators of Rolling Hills tell us they do not know how this family became part of this band around the time Rolling Hills Casino was built.

Their application was denied twice by an expert in anthropologic and genealogy investigations and the Bureau of Indian Affairs.

Read More Here - Action News Now - A major shake-up has taken place within the tribe that owns Rolling Hills Casino in Corning

Also:

Action News Now - Rolling Hills Casino's governing body going through "tribal transition"