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Nevada Company Executives Agree to Pay Tribe $2.5 Million for Participating in Embezzlement and Kickback Scheme
On May 2, during a change of plea hearing in the U.S. District Court for the District of Montana, a Nevada-based company and three of its executives pled guilty for their roles in a scheme to help tribal officials embezzle money and provide kickbacks to its payday lender officials. Specifically, the company pled guilty to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, while one of the principals and the President and CEO both pled guilty to charges of “conspiracy to commit wire fraud and engaging in monetary transactions in property derived from specified unlawful activity.” The other principal pled guilty to charges of misprision of felony, according to the plea agreement. The plea agreements further stipulate that full restitution is due to the tribe in the amount of $2.5 million. The payment in the 2015 settlement of the civil case in this matter (see writ of execution in The Chippewa Cree Tribe of The Rocky Boy Reservation of Montana v. Encore Services No. 2:14-cv-01294-JCM-PAL (D. Nev. Feb. 2, 2015)) will offset the restitution in the criminal case. In addition, one of the principals and the President/CEO are responsible for paying an additional $700,000 each, according to the breakdown contained within two of the plea deals. Sentencing is scheduled for August 24.