78 Navajo Nation Council Members Accused of Fraud
- Posted on July 30, 2011 at 3:00pm by
Jessie Abrams
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WINDOW ROCK, Ariz. (AP) — A special prosecutor filed a lawsuit against 78 current and former Navajo Nation Council members alleging massive fraud in their use of $36 million in discretionary funds intended for Navajos in need.
The lawsuit filed Thursday accuses the council members of unlawfully taking about $36 million belonging to the deeply impoverished American Indian reservation from 2005 through 2010 to benefit themselves and their families.
The council receives millions of dollars a year through supplemental budget appropriations to dole out to elderly Navajos on fixed incomes, college students, organizations in need or Navajos looking for emergency funding. Any member of the nation can seek financial help from a single lawmaker every six months.
The nation’s Supreme Court put on hold the discretionary until rules were established on how they could be doled out.
The civil case comes after all or nearly all of criminal cases against council members for alleged misuse of the money were dismissed. The lawsuit seeks the recovery of the money and accuses council members of ignoring their responsibility to keep tight controls over the nation’s money.
“These officials have divested themselves of their duties of honesty and transparency, choosing instead to perfect the art of self-dealing, ineptitude and secrecy,” said the lawsuit filed by special prosecutor Alan Balaran.
Tribal Council Speaker Johnny Naize, one of the lawmakers who was sued, said the lawsuit was a shoddy piece of legal work by the special prosecutor. “He is throwing darts again trying to see if any will stick,” Naize said.
David Jordan, an attorney who represented dozens of lawmakers in the criminal cases, said Balaran has billed the nation for $1.1 million for his investigation and came up empty handed.
Balaran didn’t immediately return a call seeking comment on Friday afternoon.
The lawsuit said that one sampling of the misspent money found that council members gave more than $2 million to 130 recipients with little regard over whether they were poor. The recipients received checks ranging from $10,000 to $54,000.
Another sample found that family members of 14 council members received $51,000 to $130,000. Additionally, millions of dollars went to Navajo Nation employees, even though they were ineligible to receive them, the lawsuit said.
The lawsuit said Joe Shirley Jr., the nation’s president from 2003 to 2011, sanctioned the passage of dozens of unlawful budget appropriations that resulted in the illegal conversion of tens of millions of dollars belonging to the nation.
Shirley approved resolutions which appropriated money to the discretionary fund and to a charitable contribution fund and which were falsely touted as emergency legislation, the lawsuit said.
The filing accuses Shirley of supporting appropriations knowing the money would be spent to enrich delegates, their families and other ineligible recipients.
“It’s outrageous that you could sue President Shirley for signing off on a budget,” said Jordan, who has advised Shirley on the investigation by the special prosecutor.
The black and white images used in this posting belong to Betty Von Gausig. They were taken by her father between 1913 and 1935 when he was a Presbyterian minister at the reservation. To see more of his photographs, click here.























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Comments (79)
jammin johnny
Posted on July 30, 2011 at 6:33pmIf you want to see real poverty….go out to the Navajo reservation. But you wont hear anyone complain. Its just not in their DNA to complain. No riots, no crack houses, no demands for free cell phones and laptops. You will see an American flag displayed from a modest home. A small christian church here and there. You will meet people who proudly served this country…for generations. You might see three kids on a dirt bike ride by and wave to you, laughing and smiling. Yatehey!
Report Post »UBETHECHANGE
Posted on July 30, 2011 at 7:01pmThank you for sharing that!
Report Post »Teaparty-grammy
Posted on July 30, 2011 at 7:25pmKnowing how the government deals with and has dealt with the original Americans in the past, I can easily believe this lawsuit is a bogus attempt by the government to justify taking “discretionary control” of the money again. They have always doled out mony to tribes at their pace and for whatever purpose they saw fit–as though the tribes were ignorant children incapable of managing their own affairs. The Cherokees in Oklahoma not only manage their own affairs very well, they have “bailed out” the state on more than one occasion: Replacing a broken water system so a town could have water out of tribal funds, and other things. What the government has done to tribes in the Southwest, Pacific Northwest, etc. is little short of criminal, and probably a preview of how well they will deal with the REST of us, if they get their way and gain control of health care and everything else.
Report Post »Jenny Lind
Posted on July 30, 2011 at 9:58pmMay they keep their spirits free.
Report Post »pattybbb1
Posted on July 31, 2011 at 12:24amYatehey!
Report Post »CamoJan
Posted on August 1, 2011 at 10:11pmYa ta hey!
Report Post »Czar Casm
Posted on July 30, 2011 at 6:11pm“It has been said that all Government is an evil. It would be more proper to say that the necessity of any Government is a misfortune. This necessity however exists; and the problem to be solved is, not what form of Government is perfect, but which of the forms is least imperfect.” – James Madison, to an unidentified correspondent 1833
You consent to give your money to politicians through taxes and you will get screwed every time.
Report Post »oneshiner
Posted on July 30, 2011 at 7:43pmNavajos against Navajos. Unbelievable they would do this to their own in the Navajo Nation. Yes, I well remember the story of my ancestors the Cherokees & their forced march on the “Trail of Tears” when so many died. These American Indians were treated badly. At least, the Cherokee’s were able to claim Oil in Oklahoma and some became very wealthy…….but I wonder if the wealth was worth the loss of lives in that forced march?
Report Post »Czar Casm
Posted on July 31, 2011 at 1:17am@ Oneshiner, you said “Unbelievable they would do this to their own in the Navajo Nation.” That’s my point. Government is instituted for the common good; for the protection, safety, prosperity, and happiness of the people. But the people who seek those positions in a government almost certainly are only there for personal wealth and power no matter how small the government, like this council.
Report Post »I have little trust in any person seeking political office.
Fina Biscotti
Posted on July 30, 2011 at 5:56pmI am glad that it was finally brought to the surface – another SCANDAL.
Report Post »jdog777
Posted on July 30, 2011 at 5:34pmMaking the case… the Department of the Interior needs to go away. The Navajos will work it out on their own.
Report Post »elphi43
Posted on July 30, 2011 at 5:21pmSounds like a Navajo problem. The US government didn‘t it’s part by handing out the money. If it is still an “in-house” problem let them handle it.
Report Post »Marci
Posted on July 30, 2011 at 5:35pmIt ceases to be an in-house problem when every American is on the hook for it. The taxpayer picks up this bill, so to say it is their problem is naive and short-sighted. If their community is misappropriating funds, you can be sure we will have to pay more in the wake of poverty in these communities. As for the person sobbing over the comments—please take a valium. There are things in life you are going to hear that “pain” you. Grow up and deal with them. Granted, some financial assistance is due them regarding history, however, how many generations have we gone now and how many more will we go? Enslaving a population for generations to pay for the “reparations” of others is enslavement—-period. This is why reparations should NEVER be allowed on a grand scale regarding slavery. It’s the road to hell for everyone involved, even those that seem to be the beneficiaries. Why? Our leaders have to control it, and it’s a fact that if not already corrupt, many of them will be. The majority of our government is corrupt right now and they remain in power for decades. How is that?
Report Post »loriann12
Posted on July 30, 2011 at 5:51pmMore proof that one or a few people can’t handle being in control of what the masses get. More proof that socialism doens’t work.
Report Post »lobster
Posted on July 30, 2011 at 5:55pmSounds like the same thing our ignomious leader is doing in D.C. He’s taking us for all he can squeeze out to give to himself and his union thugs.
Report Post »roadmaster
Posted on July 31, 2011 at 9:35amIf you want to see just how destructive the welfare state can be, visit the Navajo Reservation. This once proud people are reduced to prisoners of the system. Many have found a way out and never go back. I’ve seen both sides; painful poverty, hopelessness, despair, drunkenness and death on the “Rez” and pride, determination, and success outside gubmint clutches.
My best friend is Navajo/Hopi and you couldn’t ask for a finer man. Good father and provider, hard worker, honest and reliable, but soft-hearted. He still helps his relatives on the Rez, whenever he can and they‘ll take advantage of his goodness and success if he let’s them.
Report Post »PghLady13
Posted on July 30, 2011 at 5:20pmIt saddens me to see people write vile comments about Native Americans. First we kill them. Them we move them away from the lands they know. Then we move them back and put them on the reservation. We stole the land. The Bureau of Indian Affairs lets this type of corruption to exisit.
Knowing those who taught on the reservations, there was a lot of corruption in the councils.
For example in the Southwest some tribes make money off casios. The tribal leaders who drive big cars or trucks and live very well collect the money in the evening. The hospitals, housing, drug & alcohol progams, education facilities on these reservations have terrible conditions. There has been bubonic plauge as well as other insidious disease. Most Native Americans who leave the reservations usually do not return, not because they are ashamed of their culture, but the culture does not change.
I am glad to see this happening. Even the Native Americans have turned a blind eye to the corruption in their councils. Are we reall much different?
Report Post »oneshiner
Posted on July 30, 2011 at 7:57pmActually this seems like what is happening right here in Washington D.C. Those who represent us and make our laws are skrewing the general public (unless you’re lucky enough to be on the dole)
Report Post »FuzzeeLogic
Posted on July 30, 2011 at 5:19pmAnother anecdote proving entitlement strategies always end in a quagmire of perpetuated misery and corruption. Sunset the Bureaus of Indian Afffairs; let the sunset deadline motivation work its power; let the tribes figure their own survival strategy with casino cash flow and without a government teat.
Report Post »meadowmouse5
Posted on July 30, 2011 at 5:07pmIf help is being provided at tax payer expense and may be needed provide some oversight. I suggest tea party not democrats who tend to do the same thing.
Report Post »Carol Ingian
Posted on July 30, 2011 at 4:57pmPretty cold, dude. The whole indian nation is not to blame for those who take advantage.
Report Post »cas13
Posted on July 30, 2011 at 4:30pmNo surprise here!
Report Post »thistihs
Posted on July 30, 2011 at 4:28pmCome on troll thats your best?
Report Post »vegtech
Posted on July 30, 2011 at 4:27pmAll current Indian nations need to end this payout program. We won you lost end of handouts!
Report Post »shane2813
Posted on July 30, 2011 at 4:22pmWhat do you expect from people who worship dirt.
Report Post »chazman
Posted on July 30, 2011 at 4:29pmNo! Say it ain’t so, Joe! Say it ain’t so!
Hi how are ya, hi how are ya, hi how are ya, hi how are ya, hi how are ya …
Report Post »thistihs
Posted on July 30, 2011 at 4:33pmIf that’s where I get my sustenance from, then yea I do.
Report Post »busdriverrock
Posted on July 31, 2011 at 11:53pmThey don’t worship dirt!! Get your facts straight
Report Post »thistihs
Posted on July 30, 2011 at 4:18pmThis is sooooooooo sad.first the white man screws them,now they screw themselves.I guess it’s human nature.
Report Post »Bonnieblue2A
Posted on July 30, 2011 at 4:57pmActually it is the tribal system where governance is more aligned with organized crime. Those without family members on the council are royally screwed while those in power keep everything for themselves and their cliques.
Report Post »NHwinter
Posted on July 30, 2011 at 4:11pmIf only people would do what is right and use our tax money for good all this d*** greed wouldn’t exist. Stop giving our money away till morality returns to America!!!! Or get decent every day people to start doing what the crooks have the power to do and maybe things would improve.
Report Post »woodyb
Posted on July 30, 2011 at 4:21pmThe official government response to ANY PROBLEM is to throw more money at it!!!!!!!!!!!
Report Post »sandy21957
Posted on July 30, 2011 at 4:02pmThe Dine (Navajo) have been ravaged by alcohol, drugs and self-destructive behavior for a long time. The rates of rape, domestic violence, child abuse both physical and sexual are significantly higher than the national average. The power hungry and abusive leadership of the tribe has always been of the lowest order on par with the political machines in Chicago or New York. Time for a house cleaning. Sweep them out.
Report Post »orkydorky
Posted on July 30, 2011 at 3:59pmIt looks like the government has found another way to screw the Indian nation by withholding funds and billing them for their own prosecutions. It seems as though the amounts of money stated in the article could be salaries paid to the counsel members. Of coarse, government employees and politicians are certainly not guilty of taking huge checks for their so called work, right???? Before passing judgment, take notice that nearly all the cases were dismissed, that tells me a lot. Then the prosecutor is billing them 1.1 million for his investigation, what the hell is that?? It sounds to me like a government agent didn‘t get his cut and he’s pissed! ME NO TRUST THE GOVERNMENT!
Report Post »montana-bill
Posted on July 30, 2011 at 3:55pmIf the debt ceiling is not raised and cogress needs a place to cut, here it is.
Report Post »Sam Brown
Posted on July 30, 2011 at 3:46pmThis just can’t be true. Everyone knows only the evil white men can cheat the Indians, just ask hollywood.
Report Post »Mtroom
Posted on July 30, 2011 at 3:37pmjust the Un-American greed factor again….and people wonder why other countries don’t like Americans…it’s because of people like this…the ones who steal their grandmother social security checks and don’t care that grandma is in dire straights
Report Post »Jediusetheforce
Posted on July 30, 2011 at 3:44pmScrew the other countries…Why because they are jealous. Stop listening to your liberal teachers!!
Report Post »Mtroom
Posted on July 30, 2011 at 4:56pmlol…don’t have any….was saying these kinda people are why we are in the debt crisis we are in…they will steal from anyone to make their selves rich
Report Post »pennswoods
Posted on August 1, 2011 at 7:29amWhat about the poor 3rd world basket case nations that rob the USA tax payers of billions each year in the name of “foreign aid” which then finds it’s way into the Swiss bank accounts or paays for swank villas or condos in Paris and London for their thug leaders????
Report Post »starboardlady
Posted on July 30, 2011 at 3:31pmPerfect example of fraud, waste and abuse.
Report Post »banjarmon
Posted on July 30, 2011 at 3:30pmNavajo Nation Council members are doing the same thing BO is doing to the rest of AMERICA!
Report Post »vtxphantom
Posted on July 30, 2011 at 3:52pmTake the veneer off of people and you get Same Ole, Same ole. Tradition and culture is trashed and the people become entitled because of an illusion of being a noble people or a disadvantaged class. It is time people carry their own weight and not wait for the special designation granted by an “elite” class of other special people.
Report Post »LadyIzShy
Posted on July 30, 2011 at 3:18pmdidnt John Stossel do a report on how the Indian tribes are SO poor because the government gives them so much. STOP giving them so much its time they stand on thier own..
Report Post »TheGreyPiper
Posted on July 30, 2011 at 3:13pmInjun speakum with forked tongue?
Report Post »13th Imam
Posted on July 30, 2011 at 3:05pmDEMOCRAT thieves come in all colors, races, genders.
Report Post »LOOKING_BOTH_WAYS
Posted on July 30, 2011 at 3:16pmdon’t you mean “Greed ”- comes in all human forms
Report Post »13th Imam
Posted on July 30, 2011 at 4:54pmAlright
Report Post »Greedy DEMOCRAT thieves come in all colors, genders.