SACRAMENTO – The Paskenta Band of Nomlaki Indians have today filed a stipulated judgment, requiring John Crosby and his mother Ines Crosby to each pay the tribe $5 million and to transfer to the tribe certain assets. John and Ines Crosby were convicted in February of a conspiracy to embezzle from the tribe in the United States District Court, Eastern District of California, and were each sentenced to 57 months of incarceration and were ordered to pay the tribe $2,705,643.08 (John Crosby) and $1,581,015.58 (Ines Crosby) in criminal restitution. The $5 million payments to the tribe required by each of them are in addition to these criminal restitution liabilities.
John and Ines Crosby—along with their convicted co-conspirator Leslie Lohse (sister to Ines Crosby), who was sentenced to 41 months, and who paid the tribe approximately $2 million in restitution and damages as part of a previous settlement—engaged in an over decade-long scheme to embezzle millions of dollars from the tribe and used the proceeds to live an obscene life of luxury, while most of the tribe’s members were barely scratching by. Examples of their purchases with tribal money detailed in court filings include: a luxurious multi-building compound in Redding, California; multiple high-end sports cars; vacations costing tens of thousands of dollars for them and their family members, several of them taken on chartered jets; a private jet that was used indiscriminately for personal and family trips; high-end jewelry and clothing purchases. At the same time, they were paying themselves millions in unauthorized retirement and non-retirement compensation.
Adding insult to injury, none of these three individuals were legitimate members of the tribe; rather, as also detailed in the filings, during the tribe’s restoration in the late 1990s, Ines Crosby and Leslie Lohse insinuated themselves with the tribe’s leadership and were able to convince them to specially open the tribal roll just for them and their family. Ines and Leslie then got themselves placed in the powerful positions of Tribal Administrator and Treasurer, respectively, and appointed John Crosby as the tribe’s Economic Director.
John, Ines, and Leslie did not only use these powerful positions to steal money from the tribe, but also to subjugate the tribe’s legitimate membership and quash any dissent therefrom. As described during emotional testimony, during the sentencing hearing, from tribal elders, leaders, and other members, the defendants established a system of punishment, terror, and control whereby tribe members who asked questions about the tribe’s finances or the defendants’ related actions were brutally punished, intimidating others to stay silent. Tribal elder Kimberly Freeman shared with the Court how she was suspended from the tribe for 10 years, denying her the money she needed to support her and her children as a single mother, just for asking whether the tribe had a private plane.
Tribal Chairman Andrew Alejandre observed regarding this settlement, “The damages that John and Ines have agreed to pay do not come close to compensating the tribe for the harm that they caused my ancestors, my elders and fellow tribal members. However, in combination with their prison sentences and orders of restitution, this settlement brings us all some justice.”
Chairman Alejandre further observed, “John, Ines, and Leslie stole from our tribe for over a decade, corrupted our government, and caused misery to our people. It is deeply satisfying to see them finally pay for their crimes.”
Stuart G. Gross of Gross Klein PC represents the tribe in connection with the criminal and related civil action in which this settlement was reached. Mr. Gross commented, “This settlement represents one of the last steps in the tribe’s long road to justice. It has been beyond inspiring to have witnessed how this people threw out their corrupt leaders, brought them to justice, and built a vibrant and transparent democratic government. This tribe is a model to us all, and I’m honored to have played a small part in their efforts.”
The civil action is titled Paskenta Band of Nomlaki Indians, et al. v. Crosby, et al., No. 15-cv-00538-MCE (E.D.Cal.).
The criminal action is titledU.S.A v. Crosby, et al., No. 17-cr-00006-JAM (E.D.Cal.).