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3 plead guilty in $5M California tribe embezzlement

August 15, 2019

SACRAMENTO, Calif. (AP) — Three former leaders of a Northern California Indian tribe have pleaded guilty to embezzling some $5 million in casino revenues that they used to fund luxury lifestyles.

John Crosby, his mother Ines Crosby and her sister, Leslie Lohse, entered pleas Thursday to conspiracy and tax evasion charges.

The three had leadership roles in the Paskenta Tribe of Nomlaki Indians, which has about 300 members and owns the Rolling Hills Casino north of Sacramento.

Prosecutors say that for five years beginning in 2009, the three diverted about $5 million of the tribe’s money and also caused a $1.6 million tax loss.

Authorities say the three bought homes, cars and gold coins and took overseas vacations.

An IRS official says the three used the tribe’s accounts as “their personal piggy banks.”

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