Native American Press / Ojibwe News (Bemidji, Minnesota), 1996-03-29

              Prosecution concludes overwhelming case
against Leech Lake conspirators
By Gary Blair
Federal prosecutors drove the final
nails in the political coffins of three
Leech Lake leaders accused of
defrauding tribal members of more
than a million dollars. Those on trial
in a St. Paul federal court are former
band attorney and State Senator
Harold "Skip" Finn, reservation
chairman Alfred "Tig" Pemberton
and secretary treasurer Daniel Brown.
Defense attorneys are expected to
wrap up sometime next week, and a
jury verdict should be forthcoming by
April 5, 1996.
The three were charged when
investigators tied them to a phony
self-insurance fund controlled by
Finn, Pemberton and Brown, who
used their positions to divert large
portions ofthe reservation's funds to
themselves. According to the
testimony, Finn set up a phony self-
insurance company called Reservation
Risk Management (RRM) on which
Pemberton and Brown served as board
members. The three claimed to be
investors, and received a combined
amount of over $100,000. Bank
records introduced at the trial indicted
that all ofthe money used by the men
came from tribal accounts established
for other purposes.
Prosecutors say Finn controlled the
company's check book with just his
signature, which he used to procure
personal loans to family members and
friends. Witnesses say he also bought
property, fancy automobiles and boats
using the band's tax exempt number,
and then later put those items in his
name.
A year ago, Finn, Minnesota's first
Native American senator, backed out
of a plea agreement to a misdemeanor
charge involving the theft. Finn got
cold feet when he realized the judge
was going to impose a one-year jail
sentence on him. Three months later,
the U.S. Justice Department brought
Case cont'd on 3
Prosecution concludes case in Finngate/ pg 1
Dog owners immune from state regulations/ pg 1
Court sides with states over gaming pacts/ pg 1
Judge says Fond du Lac Band can hunt off res./ pg 1
Spearfishing, Gambling link seen/ pg 8
Voice of the People
)
Owners, not
regulations on
By Jeff Armstrong
A Minnesota city on the Leech Lake
Reservation says it still has the
authority to detain stray dogs, but a
state district court judge ruled that
Cass Lake has no jurisdiction to
require dog licenses or issue citations
to the pets' owners.
In his March 6 opinion, Cass County
judge John P. Smith said that allowing
the city to register and regulate canines
and their owners would infringe upon
the reservation's civil jurisdiction.
dogs, immune from state
reservations
"The licensing of dogs in Cass Lake is
a local regulatory measure and perhaps
a device to impose a tax on dog
ownership," wrote Smith.
Despite Public Law 280's extension
of state criminal jurisdiction to
reservations in several states, tribes
in such states retain the right to
establish independent civil laws in
areas such as taxation, environmental
standards, and the regulation and
licensing of activities generally
allowed in the state. As a result, states
are prohibited from enforcing civil
regulatory laws against tribal
members    within    reservation
boundaries.
Indicted Leech Lake chairman
Alfred (Tig) Pemberton had written
in support ofthe city inthe matter, bv I
the tribal government's consent is not
sufficient to transfer jurisdiction to
the state.
As the U.S. Supreme Court ruled in
the 1971 case of Kennerly v. District
Court of Montana, the Indian Civil
Rights Act mandates that any
assumption of state civil jurisdiction
Immune cont'd on 3
Illative
Fifty Cents
Ojibwe
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We Support Equal Opportunity For All People
Founded  in 1988
Volume B   Issue 24
March 29, 1996
1
klu publication.
Copyright, Native American Frees,  1996
Ruling a rare invocation of 11th Amendment
Its purpose: To protect states' rights from federal intrusion
By Eric Black
Star Tribune Staff Writer
The Supreme Court decision
Wednesday on Indian casinos
provided a rare moment in the sun for
the 11th Amendment, one ofthe U.S.
Constitution's less famous provisions.
The amendment, ratified in 1795,
protects states from being sued in
federal court. Supreme Court
decisions and congressional acts have
since changed the contours of such
protection^
Wednesday's 5-4 ruling, barring
Indian tribes from suing states under
the Indian Gaming Regulatory Act,
restores some strength to the 11th
Amendment. "Its biggest impact will
be on Indian gaming," said Suzanna
Sherry, a professor of constitutional
law at the University of Minnesota.
"But it's also a very important decision
in limiting the power of Congress and
the jurisdiction ofthe federal courts."
The decision is part of recent
Supreme Court trend favoring states'
rights over federal power. Sherry
provided this short course on the 11th
amendment.
Article III of the Constitution,
which establishes the federal
judiciary, raised rears among anti-
federalists that states could be sued
in federal courts. To quiet that
controversy, James Madison and other
Ruling cont'd on 6
State challenges Bureau of Indian Affairs
MADISON, Wis. (AP) _ A newly
filed lawsuit opposing a government
transfer of land to federal trust status
is the latest of several legal actions
taken or threatened by the state
regarding tribal matters.
But Gov. Tommy Thompson denies
any link between the legal moves and
the upcoming renegotiation of gaming
compacts between the state and
Wisconsin's 11 Indian tribes and
bands.
The latest suit was filed Friday
against the U.S. Interior Department,
whose Bureau of Indian Affairs is
being asked to grant trust status for
724 acres of Sauk County land near
Wisconsin Dells.
The request comes from the Ho-
Chunk Nation, which operates a
gambling casino near Wisconsin
Dells.
Sauk County officials and the town
of Delton say placing the acreage
under federal trust would give the
land immunity from local property
taxes.
The state previously filed two
challenges against the U.S.
Environmental Protection Agency,
which has authorized the Oneida tribe
in Brown County and the Sokaogon
Chippewa in Forest County to set
their own water quality regulations.
Thompson and George Meyer,
secretary of the state Department of
Natural Resources, said last week
there might be a suit against off-
reservation spearfishing plans ofthe
State cont'd on 8
As Bemidji celebrates its centennial, residents question what changed for aboriginal people in last 100 years.
Judge says Fond du Lac Band can hunt off
public land off reservation
McArthur announces  candidacy for
Chairman of the White Earth Band
It is with much enthusiasm and
optimism that I, Eugene "Bugger"
McArthur, announce my candidacy
for Chairman of the White Earth
Band of Chippewa Indians.
We, as tribal members stand on the
threshold of an exciting new era of
government in White Earth. Our
future is full of promise and hope and
every person will be treated fairly and
shall have the opportunity to
participate fully in the affairs of our
tribe. Tribal leaders will truly serve
the people and it is in the spirit we
prepare our great Nation for the 21st
century. We need new ideas,
constitution reform, public Tribal
Council meetings, election primaries,
term limits, financial accountability
and leaders who are accountable and
receptive to the voice of our
constituents. We need leaders who are
in touch with the pulse of the
communities and the political realities
of the state and federal governments.
We will come together as a people
and regain control of our government.
We will work together to rebuild our
government, our communities and
provide a better tomorrow and future
for all of our people.
No one man can do it all, but with
your support and help WE can
provide a way of life befitting to us as
White Earth Ojibway A way of life
which will accomodate and address
the needs of our people. A way of life
which will provide us with pride,
respect and hope.for the future.
I am looking forward to visiting and
talking with as many of you as
possible during our campaign. I will
also be providing timely mailings or
campaign updates throughout the next
few months to keep you informed of
the issues and concerns of our
election.
It is time we come together as a
people, remove the status quo, neglect
and abouse ofthe past. We must stand
united, create a form of government
for and of the people and begin our
quest toward the future together, with
new leadership we can depend on.
ST. PAUL (AP) _ A federal judge
has ruled that the Fond du Lac Band
of Chippewa Indians has permanent
rights to hunt, fish and gather over a
large area of eastern Minnesota.
This week's decision by U.S.
District Judge Richard Kyle bolsters
a partial decision he made in 1992 in
a case brought against the state of
Minnesota by the band.
But one hunting rights' group on
Friday called the decision
"unbelievable and incredible."
"It's a travesty of justice," said
Howard Hanson, president of the
Hunting and Angling Club of
Minnesota.
An attorney for two northeastern
Minnesota landowners said Friday he
plans to appeal a decision by Kyle
that prevents his clients from
intervening in the case.
The ruling means Fond du Lac tribal
members can hunt and fish across the
Arrowhead region under rules set by
their own people and not the state's.
The state can only regulate the
band's harvest when it is necessary
for public safety, public health and
conservation, and cannot impose
regulations if the band can effectively
regulate its own members, the judge
ruled.
The case now enters a second phase,
in which the court decides how much
fish and wildlife the band has a right
to take.
Band attorney Henry Buffalo said
he did not expect the ruling to mean
much change inthe harvesting levels
or seasons set by the Indians.
For the past several years, the band
has set its own deer and moose seasons
after negotiations with the state. The
band's  seasons  haven't varied
Hunt cont'd on 3
One of 24 federal charges dropped against Sen. Finn
ST. PAUL (AP) - One of 24 felony
charges against state Sen. Harold
"Skip" Finn was dropped Thursday in
the federal fraud case against him.
Prosecutors dropped the charge that
Finn, DFL-Cass Lake, obstructed justice by ordering a tribal official to destroy evidence.
James Hanbury, a Department of Interior special agent, testified that he
told a grand jury three times that the
Leech Lake Band of Chippewa and
Finn had not provided the government
with important evidence. The evidence turned out to be in Hanbury's
files, but he said he overlooked it.
Prosecutors allege that Finn masterminded a scheme in which he and
two leaders ofthe band pocketed $1.1
million from an insurance fund that
Finn managed for the tribe.
Finn is on trial along with Leech
Lake Band Chairman Alfred "Tig"
Pemberton and Daniel Brown, the
band's secretary-treasurer.
The indictments stem from Reservation Risk Management Inc., a company Finn founded to sell insurance
to tribe members.
Finn still faces charges of conspiracy, theft, bribery, mail fraud and
money laundering.
Defense attorneys say Finn is the
victim of an overzealous federal investigation.
High court sides with states over gaming pacts   Tribal leaders owe thousands
with tribes Minnesota probably won't be affected for now      in back rent, lawsuit claims
By Pat Doyle
and Robert Whereatt
Star Tribune Staff Writers
In a dramatic victory for states over
federal power, the U.S. Supreme
Court ruled Wednesday that Congress
cannot allow Indian tribes to sue states
in federal court when negotiations
collapse over placing casinos on
reservations.
The 5-4 decision, which included
an unusually vigorous dissent, bars
federal court intervention when tribes
and states clash over starting &nd
possibly expanding casinos.
But the ruling's greatest impact lies
in its potential to shift power from
Congress to states in various areas that
could range from environmental
regulation to bankruptcy law, some
legal experts said.
In Minnesota, the ruling has no
apparent immediate impact on a
casino industry that attracts $2.5
billion in wagers a year, according to
lawyers for the state, universities and
tribes. That's because the casino
compacts between Minnesota and its
tribes have no expiration dates that
would require new negotiations.
"I don't think this should have any
impact on the compacts that we've
entered into with the tribes," said
Minnesota Solicitor General Alan
Gilbert, who handled Indian casino
compacts for the state.
"It could conceivably have an effect
on any future request by a tribe to play
a new game in Minnesota."
In Wisconsin, where casino
compacts are set to expire this decade,
the ruling could give state officials
greater leverage in renegotiating the
deals. The ruling appears to allow
tribes to ask the U.S. Interior
Department to overrule states that
balk at casino plans, experts said.
Conflicting rights
Wednesday's decision grew out of
disputes over the Indian Gaming
Regulatory Act, which Congress
passed in 1988. In 1987, Supreme
Court ruled that states cannot ban
gambling on Indian reservations
within their borders if the same
gambling is allowed elsewhere in
those states.
The Indian Gaming Act said tribes
must negotiate agreements with slates
before they can open casinos, and it
allowed tribes to sue in federal court
if they thought that states weren't
negotiating in good faith.
That's what the Seminole Tribe of
Florida did after it reached an impasse
in negotiations with the state. Gov.
Lawton Chiles refused to agree to the
Seminole's concept of what type of
gambling to include on one of the
tribe's five reservations.
The Supreme Court decision
Wednesday in the Seminole lawsuit
relied heavily on the Constitution's 11
Amendment, which protects states
from being sued in federal courts
against their will. The amendment
long has been a rallying point for
states-rights advocates.
Writing in dissent, Justice John Paul
Court cont'd on 8
RAPID CITY, S.D. (AP) _ High-
paid officials of the Oglala Sioux
Tribe owe thousands of dollars in
back rent and housing payments,
according to charges in an affidavit
filed in federal court.
The allegations are part of a complex
civil lawsuit filed last fall by Black
Hawk attorney Mario Gonzalez
against the Bureau of Reclamation
and 13 Oglala Sioux tribal members.
Gonzalez said the case could break
new ground if U.S. District Judge
Richard Battey rules that tribal
officials living on an Indian
reservation can be charged with
racketeering. The judge also will
decide whether federal privacy rules
apply to construction contracts,
Gonzalez said.
A motions hearing was held
March 11.
Gonzalez claimed tribal officials
and the Bureau of Reclamation
violated federal privacy rules by
releasing records of bills for his legal
services.
He also alleged tribal officials
violated his civil rights under the
federal Racketeering Influenced and
Corrupt Organization Act.
Gonzalez is seeking $29 million in
damages.
Named in the civil lawsuit are tribal
President Wilbur Between Lodges,
tribal Executive Director Chuck
Jacobs, Oglala Sioux Rural Water
Supply System Director Gerald
Clifford, Oglala councilmen G.
Wayne Tapio, Gerald Big Crow,
Lawsuit cont'd on 8