A lawsuit by one faction of the Paskenta Band of Nomlaki Indians in Northern California alleges that a rival faction engaged in a dozen years of systematically looting tribal coffers. Millions of dollars were embezzled, says the lawsuit.
The tribe has sparked more than its share of drama in the last year. That included an armed standoff outside of the Rolling Hills Casino and allegations that one faction launched a cyber attack that erased important casino records.
The tribal leaders accused of misconduct ran the tribe from 1998 until 2014, when they were finally pushed from power. During that time they rigged elections, held all power in their hands, and kept the tribe’s finances under wraps, says the lawsuit.
The money was used for luxuries such as a $17 million private jet, expensive sports cars, extended vacations, $450,000 World Series tickets and even purchases of gold bullion.
The lawsuit includes allegations under the federal RICO (Racketeer Influenced and Corrupt Organization). It names 19 defendants, including several tribal officials. The most prominent defendant is John Crosby, the tribe’s longtime economic development officer, who was once an FBI special agent. It also includes some of his relatives.
It alleges that more than $20 million was “looted.”
Crosby last year said that previous complaints about travel expenses did not include the need to take trips to promote economic development.
The lawsuit describes how the reign of the longtime tribal leaders came to an end. “In April 2014, in an impressive and inspiring expression of self-determination and democracy, the tribe came together and removed the RICO Ringleaders from power. The Rico Ringleaders did not, however, go quietly.”
The lawsuit alleges that the former tribal leaders armed themselves and attacked the casino while launching a “cyber attack” on the casino’s computer network.
Both factions of the tribe agreed to an audit of the tribe’s finances by the WilmerHale law firm which said, “there had been a widespread and systematic failure to comply with tribal laws and a dissipation of tribal assets,” according to the lawsuit.
