Seven accused of defrauding Oglala Sioux Tribe in bond scheme
http://www.indianz.com/News/2016/05/12/seven-accused-of-defrauding-oglala-sioux.asp
Federal authorities announced charges against seven people who are accused of defrauding the Oglala Sioux Tribe and investors of millions of dollars.
According to the U.S. Attorney’s Office, the defendants “induced” the Wakpamni Lake Community Corporation to issue “tens of millions of dollars in municipal bonds.” But the bonds were never invested despite promises to improve economic development conditions on the Pine Ridge Reservation in South Dakota, authorities said.
Instead, the bonds were sold to investors who weren’t aware of the fraudulent nature of the scheme, according to authorities. The defendants used those proceeds for their own lavish expenses, U.S. Attorney Preet Bharara from New York City said.
“As alleged, the defendants induced an Oglala Sioux Native American tribal entity to issue bonds through lies about how the bond proceeds would be invested,” Bharara said in a press release. “Instead of investing the proceeds in a way that would provide capital for development and help cover the interest payments, the defendants allegedly pocketed most of it to pay for their own personal expenses, homes, cars, travel, and jewelry.”
Here is the link to the 45 page indictment
http://www.indianz.com/m.asp?url=https://www.justice.gov/usao-sdny/file/850241/download
Also charged in the alleged Sioux scam are Gary Hirst, Hugh Dunkerley, Bevan Cooney, Devon Archer and Michelle Morton.
https://nypost.com/2016/05/12/porns-new-king-busted-for-ripping-off-tribe-in-60m-scam/
The seven were also charged in a civil action by the Securities and Exchange Commission, which claimed the group spent their ill-gotten gains on designer duds from Gucci, Prada, Valentino and Yves Saint Laurent.
Jason was accused of using nearly $500,000 of the proceeds to cover legal bills related to his pump-and-dump case.
“The defendants also allegedly duped unwitting investors into buying the bonds by hiding material facts about them, including their lack of liquidity,” Bharara said in a statement.
The group “left devastation in its wake: a tribe with tens of millions in bond obligations it cannot pay, and investors out tens of millions, left holding bonds they did not want,” the lawman added.