Native American Press / Ojibwe News (Bemidji, Minnesota), 1996-05-31

              Wadena trial new chapter in
of land, resources on White
By Gary Blair
The federal fraud trial ofthe White
Earth reservation's Darrell "Chip"
Wadena government gang has moved
into its third week of testimony. The
trial is scheduled to last 6 to 8 weeks.
White Earth executive director
Darwin "Darb" McArthur was called
to the stand by the prosecution.
McArthur's testimony included
statements that the reservation has
had to borrow money to make its
payroll at least "6-7 or 8 times" in
the last couple of years. "The
reservation has a credit line of 1.3
million," McArthur told jurors.
According to earlier testimony
from Bemidji CPA Henry Moller,
whose accounting firm conducts
audits for the RBC, the reservation
generates about $55,000,000 in
annual income. Thirty-three million
comes from the casino, the remainder
from cottage businesses, and state and
federally funded programs.
When questioned further,
McArthur admitted that some ofthe
funds received by the gang were not
easily traceable through the
reservation's financial records.
McArthur also testified that when
White Earth defendant Carley "Baby
Doll" Jasken became the reservation's
program assistance manager, large
amounts of funds were issued to pay
for high priced furniture for certain
band members. The recipients were ■
reportedly close friends of Baby Doll.
On Tuesday and Wednesday, IRS
criminal investigator Mike Nelson
testified that in 1993 alone, gaming
commission payments to the gang's
leader, chairman Wadena, totalled
$58,400.00. Sec/tres. Jerry Rawley,
is said to have received $49,725.00,
and councilman, Rick Clark obtained
$55,000.00 from the same scam setup to increase the gang's salaries and
tax write-offs.
Chip's yearly salary at the time was
100-year theft
Earth
reported to be $240,000. Rawley and
Clark's annual salaries were said to
be just over $200,000.
Agent Nelson also testified that
Rawley and Clark used part of the
gaming commission payments to
purchase new $16,000 tax-free GMC
pickups from Preston Motors of
Landcaster, PA. Clark is reported to
have converted part of his gaming
commission payment into a $10,000
cashier's check before making his
vehicle purchase. The IRS agent
testified that the transaction was an
attempt to cover up the tax-free
money transfer by Clark.
Nelson further testified that his
investigation revealed that Chip used
$10,000 of his 1993 commission
check as down-payment for a
$29,831.72 auto loan on a 1992
Cadilac he bought for his wife,
Bonnie, at Wally McCarthy Cadillac
in Roseville, Minnesota. Further IRS
Trial cont'd on 3
Snubbed by incumbents, Leech Lakeforums
open debate on political crisis
By Jeff Armstrong
Leech Lake candidate forums in Cass
Lake and Onigum revealed an
apparent consensus on most of the
immediate issues facing the
reservation, from constitutional and
electoral reform to cultural renewal
and restoration of the reservation's
land base.
Several candidates characterized the
current tribal government as
"oppressive" and a "dictatorship,"
echoing complaints long voiced by
those who dared speak out against the
system. "Everyone's a dissident now,"
said activist Bea Dunn.
Singling out Walter (Frank) Reese
as having been on the front lines of
the people's struggle, Dunn challenged
the remaining candidates to carry their
involvement past the next election.
"Are you willing to stand up and fight
for the true cause: our people, our
children, our land?" asked Dunn.
"We've been going to jail on
jurisdiction issues for years now, and
Frank Reese has been there for us.
Will you be there now?"
As several office seekers pointed
out, with only two available seats on
the five-member RBC, the election
victors may be unable to carry out the
"housecleaning" most are advocating.
"It'll be a small change, but it's a step
we have to take," said Bob (Punk)
Wakanabo.
The candidates for RBC Chair
unanimously endorsed a proposal to
remove Secretary Treasurer Dan
Brown from his remaining two years
of office, due to his conviction last
month on conspiracy charges.
Restoring- and empowering
community councils was also a
popular issue. "I think local councils
should be involved in all the decisidns
ofthe tribal council," said Dean Wind
of Dist. III.
Incumbent RBC officials and
candidates Myron Ellis and Alfred
Pemberton, who were convicted of
participation in a million dollar
embezzlement scheme, have failed to
attend any of the four candidate
forums. Several candidates, including
Josie Lee, accused the RBC of using
its monopoly on power to solicit-
possibly fraudulently-absentee votes.
"They get all the ballot requests, and
that's who they focus their campaign
on," said Lee.
District III aspirant Dee Fairbanks
said the Leech Lake RBC has the
same potential for vote fraud as the
defendants in the White Earth trial.
"How do we know it doesn't happen
here? If they don't trust us to run our
own government, maybe they won't
trust us to vote," Fairbanks said.
Dave Hare, a candidate for Chair,
said the strong possibility of election
fraud should prompt the candidates
to begin working together.
But even in the event of a
scrupulously fair vote, two dozen
candidates running on the banner of
change could substantially dilute the
opposition vote. A supporter of Eli
Debate cont'd on 2
Indians balking at 'minority1 label
Many Indian people say they
don't want to be considered
"people of color," especially
where education is concerned.
By Wayne Washington
Minneapolis Star Tribune Staff Writer
Cindy Lavorato is still worried.
Lavorato, counsel to the state Board
of Education, came into a meeting
Wednesday with American Indian
tribal representatives worried that the
Indians' objection to being considered
minorities when it comes to
desegregation will leave them with
less legal protection from
discrimination. She left the meeting
just as concerned.
Most who attended the meeting
agreed that it was respectful,
informative and important. Some
suggestions that were offered will be
discussed further when the board
meets June 10 in a continuing effort
to rewrite Minnesota's school
desegregation rule.
Lavorato, for example, suggested
deleting the term "learners of color"
in the rule draft and replacing it vvith
"learners of a protected class." Tribal
representatives suggested a separate
section under "learners of a protected
class" that would define who Indians
are and specifically note the sovereign
status of tribes.
But the rub remains: Many Indians,
particularly those who live on or near
reservations, aren't thrilled vvith the
prospect of the state determining
which schools are racially isolated
and are worried that the effort to
include them in a new desegregation
policy will dilute Indian sovereignty.
So, they hope, if they aren't classified
as minorities" or "learners of color'
they can proceed with educating
Indian children without fear of
government interference.
"My goal, quite frankly, was to not
even have Indians in the rule," said
Tom Peacock, the only member ofthe
board who is Indian. "People in
Indian country would tell me, 'You've
got to keep us out of this thing.' The
problem, however, vvith shedding the
minority label when it comes to
desegregation is that that would take
away the strongest weapon Indians
have in fighting discrimination,
Lavorato said-.
Governments must offer a
compelling reason why they should
be allowed to legally discriminate
against minorities, she said, adding
that most reasons aren't compelling
enough. Governments, however, can
offer a substantially less compelling
reason why they should be allowed
to legally discriminate against groups
with unique political status, which
would be the only status Indians
would hold if they willingly gave up
minority status.
Marilyn Oshie Dorr, director ofthe
White Earth Tribal Department of
Education, said Wednesday that she
does not believe the floodgates to
discrimination will be opened if Indians
are not considered minorities regarding
desegregatioa She shifted the focus
from what Indians say they are not to
what they have insisted they are.
"We're saying we don't fall into any
of these categories," Dorr said. "We're
saying we have a unique sovereign-
to-sovereign relationship."
This article is reprinted from the
Thursday, May 30, 1996, edition of
the Minneapolis Star Tribune.
Fearing Humphrey, Indian bingo operations
ban Minnesotans
By Philip Brasher
WASHINGTON (AP) _ American
Indian tribes are offering high-stakes
bingo over the telephone and Internet
_ the latest efforts by tribes to use
their reservations for interstate
gambling operations.
But don't plan to play ifyou live in
Minnesota.
Promoters won't accept players from
Minnesota because they saythey don't
want to tangle with Minnesota
Attorney General Hubert Humphrey
III, who helped block an Idaho tribe's
attempt to start a national lottery.
"We're not offering the opportunity
to play there but we're in discussions,"
said Gordon Graves, chairman of
Tulsa, Okla. -based Multimedia
Games Inc., which runs an Internet
operation that links a series of Indian
bingo halls.
"Until those discussions are
complete we think it's best not to
allow people to participate from
Minnesota."
Humphrey has been a leader among
state officials fighting attempts by
Indian tribes and others to use the
telephone or Internet for gambling
operations.
Some tribes that have been blocked
by states from opening casinos have
been looking for ways to offer
gambling over phone lines or the
Internet.
Last year, Minnesota and several
other states blocked the start of the
proposed National Indian Lottery by
warning long-distance telephone
companies that they considered it
illegal. The lottery was designed to be
played with a credit card and a toll-
free phone call.
Bingo cont'd on 5
President signs order protecting sacred sites
HELENA (AP) _ President Clinton
signed an order Friday promoting
access to and protection of areas on
federal land considered sacred
"All Americans have a stake in
seeing that the religious freedom of
their fellow citizens is preserved and
protected," Clinton said.
The action was applauded by tribal
representatives.
"Protection of sacred sites and
freedom of religion are often taken
for granted by most Americans, but
Indian people are still fighting this
battle," said Gail Small, executive
director of Native Action.
Pat Smith, a lawyer representing
Indian interests, said the order is
especially important in resolving
disputes, such as the concern about
proposed mining in the Sweet Grass
Hills north of Chester. Indians
consider the hills sacred.
Wadena trial new chap, in 100-year theft of land/pg 1
Snubbed by incumbents, Leech Lake forums/ pg 1
Notice to Leech Lake enrollees/ pg 4
American Indians balking at 'minority* label/ pg 1
MCT enrollment process for adopt, ends in July/ pg 6
Voice ofthe People
Native
Fifty Cents
Ojibwe
News
We Support Equal Opportunity Far All People
Founded  in 1988
Volume B   Issue 33
May 31, 1996
1
A weekly publication.
Copyright, Native American Preee, 1996
Leech Lake Honor Guard carried in flags to honor their fallen comrades at the Leech Lake Veterans memorial j
pow wow grounds in Cass Lake.
Laundered money used to buy truck, IRS
witness says
Agent testifies after defense attorney asks for a mistrial
By Pat Doyle
Minneapolis Star Tribune Staff Writer
An fRS agent testified Tuesday in
St. Paul that a White Earth Chippewa
official drew a payment from a tribal
account, converted it to a cashier's
check at an area bank and bought a
truck from a Pennsylvania dealership.
With a chart showing transactions,
agent Mike Nelson told jurors how
tribal council member Rick Clark
moved checks in 1992 to buy a new
truck.
Prosecutors have charged Clark,
secretary-treasurer Jerry Rawley and
White Earth tribal chairman Darrell
(Chip) Wadena with misapplication
of funds, money-laundering and other
offenses. The officials allegedly
created gambling and fishing
commissions on the reservation in
northwestern Minnesota, appointed
themselves to the panels and used
those positions to illegally tap tribal
funds to buy vehicles for themselves
or to boost salaries.
Nelson's testimony followed an
unsuccessful attempt by defense
attorneys to persuade U.S. District
Judge Michael Davis to declare a
mistrial after learning that a former
prosecutor in the case recently talked
to the mother of a juror.
Nelson testified that in May 1992
Clark received $17,000 from a White
Earth account and deposited it in the
First National Bank of Bagley. The
bank issued a cashier's check to Clark
for $15,000 and he withdrew the
remaining $2,000 as cash.
Later, acashier'scheckfor$16,199
was issued payable to a truck
dealership in Pennsylvania. Nelson
testified that the $15,000 cashier's
Attention Mille Lacs Lake Band Members
Tribal Chairman candidate Steve "Mushkooub" Aubid has been invited back
to speak on KFAI Fresh Air Radio; Wednesday, June 5th, 1996, 11:30 a.m.,
90.3 FM or 106.7 FM. Press Conference- Wednesday, June 5th, 1:00 p.m.,
Franklin Ave., Business Center, 1443 E. Franklin Ave., Mpls., MN.,
Conference Room or parking lot (depending on weather).
Utah can force Navajo to pay taxes
WASHINGTON (AP) _ The   from county commission meetings   whether Marybo;
check was converted to the $16,199
check and other documents indicate
that the dealership received $16,199
for the truck.
Clark, Rawley and Wadena also
face charges of conspiracy, theft,
embezzlement and bribery. Many of
those charges stem from alleged bid-
rigging in the construction of the
tribe's Shooting Star Casino in
Mahnomen. Clark and Rawley also
are charged with conspiring with
tribal election judge Carley Jasken to
commit vote fraud.
Regarding the bidrigging charges,
Nelson said he questioned Rawley
about why he accepted a $15,000
check from a firm run by Clark that
received the drywall contract for the
Shootiiig Star Casino.
"He said because of his position as
Money cont'd on 3
LL Candidate Forum
June 6,1996, 7:00 p.m.
New DIW 10th & Lake,
Minneapolis
WASHINGTON (AP) _ The
Supreme Court has ruled Utah can
require a Navajo Indian living on the
tribe's reservation to pay state income
tax on his salary as a county
commissioner.
The court, without comment, on
Tuesday turned down Mark
Maryboy's argument that he should
be exempt from income taxes because
he performs most of his work on the
tribe's reservation.
Maryboy lives on the Navajo
Reservation in Montezuma Creek,
Utah.
As an elected member of the San
Juan County Commission, his duties
include coordinating county programs
on publ ic safety and natural resources
and meeting vvith Navajo government
officials.
Maryboy's appeal said that aside
from county commission meetings
held in the county seat of Monticello
offthe Navajo reservation, he performs
his commissioner's duties on the
reservation.
The Utah State Tax Commission
decided Maryboy owed income taxes
for 1988 through 1990. He appealed,
and the Utah Supreme Court ruled
that he must pay the taxes.
Calls to Maryboy's home and work
numbers went unanswered Tuesday.
However, Brian Tarbet, an assistant
Utah attorney general representing
the tax commission, said the ruling
was expected.
"I don't believe we ever felt this was
a case the Supreme Court would be
interested it... but I don't think we're
surprised by this _ which is not to say
we're not pleased," Tarbet said.
,   The state's top court said that
whether Maryboy works on or offthe
reservation, he is representing the
interests of San Juan County residents
including those who do not live on the
reservation.
His policy-making powers have
countywide effect, the court noted,
adding that his employment as a
publicly elected official "is necessarily
beyond the reservation boundaries and
tribal self-government."
In the appeal acted on Tuesday,
Maryboy's lawyers said states cannot
tax income earned by Indians who
work on reservation land.
The state's lawyers contended,
however, that his income is earned off
the reservation and thus can be taxed
by the state.
The case is Maryboy vs. Utah State
Tax Commission, 95-1359.