Lawsuit Accuses California Tribe of Squandering Casino’s Millions

March 16, 2015

One faction of an Indian tribe has accused another in a lawsuit of squandering millions of dollars in profits from a Northern California casino to lead lavish lifestyles.

In the federal suit filed Tuesday, tribe members who lost control of the Rolling Hills Casino last year are accused of spending $17 million on private jet travel and millions more on tickets to professional sporting events, luxury homes, expensive vacations and custom sports cars, The Sacramento Bee reported.

The suit alleges the faction invested $93 million in gold, property and unproven, high-risk startup companies.

They also are accused of mounting an armed attack, which authorities described as a standoff between two rival factions on a road leading to the casino in an attempt to regain control.

That was followed by a cyber-attack to cover up their criminal activity, the lawsuit alleges.

Authorities were not immediately available Wednesday to provide further information to The Associated Press related to the allegations.

The AP also could not immediately determine if the people sued have retained lawyers.

The lawsuit marked the latest chapter in an ongoing fight over the casino located near Corning, about two hours north of Sacramento.

The casino makes $100 million a year and provides $54,000 annually to each of its 300 members.

The suit alleges the “looting spree” was enabled by “rigged” tribal elections.

The 171-page lawsuit includes claims under the federal Racketeer Influenced and Corrupt Organization Act. It names 19 members of the tribe, including four former leaders.