Tribe Officials Hit With Fraud Claims In Disenrollment Row
Law360, New York (January 24, 2017, 4:53 PM EST) -- Six Nooksack Tribe members filed a complaint in Washington federal court Monday claiming that they have been defrauded by tribal officials who no longer have the power to act for the tribe and that the officials have submitted over $1 million in false claims to federal agencies.
The tribe members hit Nooksack Chairman Robert Kelly Jr. and other members of the tribe's governing council with Racketeer Influenced and Corrupt Organizations Act claims alleging the officials have illegally tried to disenroll them from membership in the tribe, despite repeated warnings from the federal government that the council hasn't had enough members to act for the tribe since March.
Nooksack member Michelle Roberts also brought claims as a relator under the False Claims Act, alleging that the officials have illegally sought payments of more than $1 million on behalf of the tribe in connection with almost $12 million in federal contracts.
"The holdover tribal council faction and their surrogates have conspired to commit a fraud upon the entire Nooksack Tribe as well as the United States government," Roberts said in a statement Monday. "They must now be held accountable before a real court of law."
The suit is the latest in a stormy battle between nearly 300 tribe members facing disenrollment and the tribe's council, with federal agencies backing the members in recent months by declaring that the tribal council lacks a quorum to act for the tribe.
Principal Deputy Assistant Secretary of Indian Affairs Lawrence S. Roberts told Kelly in an October letter that the BIA would not recognize any actions taken by the tribe's council since March 24, when the terms of four of its eight council members expired. The current council does not have a quorum of five members required to conduct business under the northwest Washington tribe's constitution, the BIA said.
Kelly, in response, asked the agency to withdraw the letter, saying that "in the event that there are financial or other consequences to the Nooksack Tribe associated" with it, "the U.S. government will be held accountable." The chairman also said there are currently seven council members, insisting that the three members who are in holdover status because of the postponement of an election remain duly authorized members with full authority.
But Roberts in November stuck to the agency's stance, refusing to recognize the purported results of a referendum vote claiming to disenroll nearly 300 tribal members for failing to prove their tribal lineage.
On Dec. 23, Roberts sent a third letter to Kelly reminding him of the BIA's position, saying that orders of eviction for some purportedly disenrolled members weren't recognized as legal by the BIA. The lack of a quorum on the council "puts all federal funding to the tribe at risk," Roberts said at the time.
Separately, Indian Health Service Portland Area Director Dean M. Seyler sent Kelly a letter in November, saying the tribe must continue to provide health services to all its members under its Indian Self-Determination and Education Assistance Act contract with the agency, including purportedly disenrolled members. That was followed by another letter from the IHS on Dec. 13.
In their complaint Monday, the six Nooksack members accused the holdover council members and several "surrogates" of racketeering, conspiracy and fraud in violation of RICO and the FCA for falsely representing themselves as the tribe and tribal council since March.
The complaint alleges that Kelly, Rick D. George, Agripina Smith, Bob Solomon, Lona Johnson, Katherine Canete, Elizabeth King George, Katrice Romero, Raymond Dodge and Rickie Armstrong violated RICO and that Kelly, George and Romero also violated the FCA.
The officials who violated RICO deliberately began to defraud the tribe members in December 2015 by taking steps to undermine a council election slated for March, the plaintiffs said. The election was ultimately cancelled, and the terms of the holdover members of the council expired on March 24, as the federal government found, according to the complaint.
But the officials still took steps to disenroll members in June and November as part of a scheme to defraud them of their money and property, including seeking to evict some of the members and prevent them from purchasing their homes through a federally funded program operated by a tribal agency, the members said.
Meanwhile, the officials enriched themselves "with hundreds of thousands of dollars in salaries, stipends and other benefits funded through federal contracts and grants," according to the complaint.
The officials have submitted several false claims to the federal government since March, starting with a housing grant agreement submitted to the U.S. Department of Housing and Urban Development's Office of Native American Programs in April, the complaint said.
The members seek treble damages for the RICO and FCA claims against the defendants acting in their personal capacity, saying that tribal sovereign immunity "generally does not protect people illegally acting on behalf of a tribe or tribal agency, especially when the tribe is defunct."
The Galanda Broadman firm, which represents the tribe members, has also contacted theNational Indian Gaming Commission, asking the agency to look into whether the tribal council's control over the tribe's Nooksack Northwoods Casino violates the Indian Gaming Regulatory Act.
Representatives for the Nooksack officials were not immediately available for comment Tuesday.
The plaintiffs are represented by Gabriel S. Galanda, Anthony S. Broadman, Ryan D. Dreveskracht and Bree R. Black Horse of Galanda Broadman PLLC.
Counsel information for the defendants was not immediately available Tuesday.
The case is Rabang et al. v. Kelly et al., case number 2:17-cv-00088, in the U.S. District Court for the Western District of Washington.
--Editing by Catherine Sum.
The tribe members hit Nooksack Chairman Robert Kelly Jr. and other members of the tribe's governing council with Racketeer Influenced and Corrupt Organizations Act claims alleging the officials have illegally tried to disenroll them from membership in the tribe, despite repeated warnings from the federal government that the council hasn't had enough members to act for the tribe since March.
Nooksack member Michelle Roberts also brought claims as a relator under the False Claims Act, alleging that the officials have illegally sought payments of more than $1 million on behalf of the tribe in connection with almost $12 million in federal contracts.
"The holdover tribal council faction and their surrogates have conspired to commit a fraud upon the entire Nooksack Tribe as well as the United States government," Roberts said in a statement Monday. "They must now be held accountable before a real court of law."
The suit is the latest in a stormy battle between nearly 300 tribe members facing disenrollment and the tribe's council, with federal agencies backing the members in recent months by declaring that the tribal council lacks a quorum to act for the tribe.
Principal Deputy Assistant Secretary of Indian Affairs Lawrence S. Roberts told Kelly in an October letter that the BIA would not recognize any actions taken by the tribe's council since March 24, when the terms of four of its eight council members expired. The current council does not have a quorum of five members required to conduct business under the northwest Washington tribe's constitution, the BIA said.
Kelly, in response, asked the agency to withdraw the letter, saying that "in the event that there are financial or other consequences to the Nooksack Tribe associated" with it, "the U.S. government will be held accountable." The chairman also said there are currently seven council members, insisting that the three members who are in holdover status because of the postponement of an election remain duly authorized members with full authority.
But Roberts in November stuck to the agency's stance, refusing to recognize the purported results of a referendum vote claiming to disenroll nearly 300 tribal members for failing to prove their tribal lineage.
On Dec. 23, Roberts sent a third letter to Kelly reminding him of the BIA's position, saying that orders of eviction for some purportedly disenrolled members weren't recognized as legal by the BIA. The lack of a quorum on the council "puts all federal funding to the tribe at risk," Roberts said at the time.
Separately, Indian Health Service Portland Area Director Dean M. Seyler sent Kelly a letter in November, saying the tribe must continue to provide health services to all its members under its Indian Self-Determination and Education Assistance Act contract with the agency, including purportedly disenrolled members. That was followed by another letter from the IHS on Dec. 13.
In their complaint Monday, the six Nooksack members accused the holdover council members and several "surrogates" of racketeering, conspiracy and fraud in violation of RICO and the FCA for falsely representing themselves as the tribe and tribal council since March.
The complaint alleges that Kelly, Rick D. George, Agripina Smith, Bob Solomon, Lona Johnson, Katherine Canete, Elizabeth King George, Katrice Romero, Raymond Dodge and Rickie Armstrong violated RICO and that Kelly, George and Romero also violated the FCA.
The officials who violated RICO deliberately began to defraud the tribe members in December 2015 by taking steps to undermine a council election slated for March, the plaintiffs said. The election was ultimately cancelled, and the terms of the holdover members of the council expired on March 24, as the federal government found, according to the complaint.
But the officials still took steps to disenroll members in June and November as part of a scheme to defraud them of their money and property, including seeking to evict some of the members and prevent them from purchasing their homes through a federally funded program operated by a tribal agency, the members said.
Meanwhile, the officials enriched themselves "with hundreds of thousands of dollars in salaries, stipends and other benefits funded through federal contracts and grants," according to the complaint.
The officials have submitted several false claims to the federal government since March, starting with a housing grant agreement submitted to the U.S. Department of Housing and Urban Development's Office of Native American Programs in April, the complaint said.
The members seek treble damages for the RICO and FCA claims against the defendants acting in their personal capacity, saying that tribal sovereign immunity "generally does not protect people illegally acting on behalf of a tribe or tribal agency, especially when the tribe is defunct."
The Galanda Broadman firm, which represents the tribe members, has also contacted theNational Indian Gaming Commission, asking the agency to look into whether the tribal council's control over the tribe's Nooksack Northwoods Casino violates the Indian Gaming Regulatory Act.
Representatives for the Nooksack officials were not immediately available for comment Tuesday.
The plaintiffs are represented by Gabriel S. Galanda, Anthony S. Broadman, Ryan D. Dreveskracht and Bree R. Black Horse of Galanda Broadman PLLC.
Counsel information for the defendants was not immediately available Tuesday.
The case is Rabang et al. v. Kelly et al., case number 2:17-cv-00088, in the U.S. District Court for the Western District of Washington.
--Editing by Catherine Sum.
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