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.
#
Any of that sound familiar?
Read the whole article at the link above.
Showing posts with label RICO. Show all posts
Showing posts with label RICO. Show all posts
Sunday, January 8, 2017
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
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
Sunday, August 2, 2015
Cross-Post How Tribal Leaders and Their Cohorts Can Steal Money From Tribal Members
This was posted at Original Pechanga Blog. This is just an excerpt! There's more here: Full Article How Tribal Leaders and Their Cohorts Can Steal Money From Tribal Members
he first order of business is the development of policies that favor theft. Re-written constitutions and ordinances that only your attorney can understand and what they understand is that you have surrendered all you authority to them. Adoption of Management Agreements that are designed to get around the provisions of the Indian Gaming Regulatory Act (IGRA) If there was ever a piece of legislation that legalized theft in Indian Country IGRA is it. IGRA is responsible for so many violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) because it does not provide for real oversight, investigative powers and authority or enforcement over Indian Gaming. By the time the attorneys and lobbyist were done with IGRA it was full on open season in Indian Country.
So let’s get down to the nitty gritty then.
How does the theft occur?
Manipulation of definitions as to what Net Profit and Gross Profit mean are the first order of business. Any time you question what the net earnings were for your casino there is never a straight answer and you are deemed as stupid for not understanding the financial report. So you have an Indian Gaming Authority (IGA) approved Tribal Revenue Allocation Plan (TRAP). It is supposed to protect you from dishonesty and allow equitable distribution of revenues in a manner approved by the Tribe.
So which is it? Is your share of the profits from the net or the gross? In a perfect world all of the revenue earnings of the casino should be deposited with the tribe then the casino asks for an approved operating budget for monthly or quarterly operation of the casino. What is left is the net earning and it is from these net earnings that the TRAP funds are derived.
What is the real life situation? Some Tribal leaders allow the casino management to determine how much money is sent to the Tribe as net profit. If management was truly greedy they would just expense you out every month and you would receive nothing. But they know they can’t do this and get away with it for very long.
You alone are responsible for what comes next. Management, along with corrupt tribal leaders, gaming commissions and accountants begin a systematic testing of what makes you happy. How much money makes you happy. They start with a number that is low and will keep it there if you never challenge them. You know that according to your TRAP you are entitled to 40% of the net earnings. (40% as an example). The math is simple. If your casino has a net of $20,000,000 per month then your monthly per-capita should be $8,000,000 and then divided by the number of tribal members of the tribe. If there are 1,000 members in your tribe this should equal a payment of $8,000 per month. But you are only receiving $4,000 a month. What happened to the other $4,000? More realistic, what happened to the other $4,000,000?
What happens after you discover the discrepancy and how it is corrected is now your responsibility. This is where the lies and cover up begins. We have heard every excuse and reason imaginable as to why your per capita is not what it should be.
New construction is probably one of the easiest ways to manipulate casino revenues. Is your casino stuck in continuous construction, remodeling and upgrades? Do you really need it? The real question is why is the cost of construction coming out of your per capita when it should be coming out of economic development. Even more the question is who authorized the new construction and the source of funds?
Full Article How Tribal Leaders and Their Cohorts Can Steal Money From Tribal Members
How Tribal Leaders and Their Cohorts Can Steal Money From Tribal Members
A first entry from guest blogger Free Range Indian is a piece on how tribal members can get bilked by tribal leaders and the gaming business entity for the tribe. A primer of what can happen.
How do Tribal Leaders and Their Cohorts Steal So Much Money FROM YOU
First of all let us understand that even a trained monkey can run a casino. There is no genius involved. You put a machine in the middle of the floor. People put money in it. You collect the money. It is after the money is collected that the problem begins. One rule to remember here, Crooks go where the money is. It is very hard to be a thief when there is nothing to steal.How do Tribal Leaders and Their Cohorts Steal So Much Money FROM YOU
he first order of business is the development of policies that favor theft. Re-written constitutions and ordinances that only your attorney can understand and what they understand is that you have surrendered all you authority to them. Adoption of Management Agreements that are designed to get around the provisions of the Indian Gaming Regulatory Act (IGRA) If there was ever a piece of legislation that legalized theft in Indian Country IGRA is it. IGRA is responsible for so many violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) because it does not provide for real oversight, investigative powers and authority or enforcement over Indian Gaming. By the time the attorneys and lobbyist were done with IGRA it was full on open season in Indian Country.
So let’s get down to the nitty gritty then.
How does the theft occur?
Manipulation of definitions as to what Net Profit and Gross Profit mean are the first order of business. Any time you question what the net earnings were for your casino there is never a straight answer and you are deemed as stupid for not understanding the financial report. So you have an Indian Gaming Authority (IGA) approved Tribal Revenue Allocation Plan (TRAP). It is supposed to protect you from dishonesty and allow equitable distribution of revenues in a manner approved by the Tribe.
So which is it? Is your share of the profits from the net or the gross? In a perfect world all of the revenue earnings of the casino should be deposited with the tribe then the casino asks for an approved operating budget for monthly or quarterly operation of the casino. What is left is the net earning and it is from these net earnings that the TRAP funds are derived.
What is the real life situation? Some Tribal leaders allow the casino management to determine how much money is sent to the Tribe as net profit. If management was truly greedy they would just expense you out every month and you would receive nothing. But they know they can’t do this and get away with it for very long.
You alone are responsible for what comes next. Management, along with corrupt tribal leaders, gaming commissions and accountants begin a systematic testing of what makes you happy. How much money makes you happy. They start with a number that is low and will keep it there if you never challenge them. You know that according to your TRAP you are entitled to 40% of the net earnings. (40% as an example). The math is simple. If your casino has a net of $20,000,000 per month then your monthly per-capita should be $8,000,000 and then divided by the number of tribal members of the tribe. If there are 1,000 members in your tribe this should equal a payment of $8,000 per month. But you are only receiving $4,000 a month. What happened to the other $4,000? More realistic, what happened to the other $4,000,000?
What happens after you discover the discrepancy and how it is corrected is now your responsibility. This is where the lies and cover up begins. We have heard every excuse and reason imaginable as to why your per capita is not what it should be.
New construction is probably one of the easiest ways to manipulate casino revenues. Is your casino stuck in continuous construction, remodeling and upgrades? Do you really need it? The real question is why is the cost of construction coming out of your per capita when it should be coming out of economic development. Even more the question is who authorized the new construction and the source of funds?
Full Article How Tribal Leaders and Their Cohorts Can Steal Money From Tribal Members
Subscribe to:
Posts (Atom)