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Showing posts with label Montana. Show all posts
Showing posts with label Montana. Show all posts

Sunday, August 14, 2016

Laurel woman sentences in Wells Fargo embezzlement case




Laurel woman sentences in Wells Fargo embezzlement case


BILLINGS, Mont. (AP) — A former employee of Wells Fargo Bank in Billings who admitted to embezzling more than $36,000 from the bank has been sentenced to five years of supervised release.
The Billings Gazette reports (http://bit.ly/2aNMXLv ) that 38-year-old Sara Marie Clark, of Laurel, was sentenced in federal court Wednesday after pleading guilty to bank embezzlement.
Prosecutors say Clark stole for several months before bank officials discovered the thefts in September 2015 and fired her.
Clark has admitted to stealing the money and says she did it to fuel a gambling addiction.
In court Wednesday, she apologized for letting her co-workers down and told the judge that she’s seeking treatment for her gambling addiction and counseling.
___

Friday, April 29, 2016

2016’s Most Gambling-Addicted States, Montana 4th gambling-addicted state, study says





Montana 4th gambling-addicted state, study says


Phil Drake

April 27, 2016

Montana ranked fourth in terms of being the most gambling-addicted state, according to a study released Tuesday by a consumer advocacy website.

The Treasure State was third when it came to gambling friendliness and 38th when it came to gambling problems and treatment rank, WalletHub’s study found.

“I wouldn’t be surprised, given how gambling is on every street corner,” said Charles Sygowski, director of office administration with Delaware Council on Problem Gambling, which handles calls for the Montana Council on Problem Gambling. “Any kind of package store can have a separate room that has 10-20 machines in it.”

Neil Peterson, executive director of the Gaming Industry Association of Montana, said he read the report and had questions.

“I see their methodology, but I can’t get any information for how they came up with the points,” he said, adding he was surprised Montana ranked above New Jersey, where there is more betting, and Oklahoma, where there is open-ended gambling.

“It’s confusing to me,” he said.

http://www.greatfallstribune.com/story/news/local/2016/04/26/montana-th-gambling-addicted-state-study-says/83566384/


CLICK ON LINK TO VIEW WALLETHUB'S REPORT:



2016’s Most Gambling-Addicted States



Gambling exists in every state — even Hawaii and Utah, where gambling is prohibited by law — but not everyone gambles the same. First, there are “recreational” or “social” gamblers who might, for instance, buy the occasional scratcher, take the rare casino trip or bet small stakes in fantasy sports. But they also possess the mental capacity to quit at any point and prevent catastrophic financial loss. Then there are “professional” gamblers — the likes of math genius Edward Thorp and high-stakes sports bettor Bill Krackomberger — who gamble well enough to make a living out of it while separating work from personal life.
But when the business or pleasure gets out of control, gambling becomes a real medical condition. Gambling disorder, as the affliction is known, affects slightly more than 2 percent of all U.S. adults. According to the Mayo Clinic, “Gambling can stimulate the brain's reward system much like drugs such as alcohol can, leading to addiction.”
That addiction can lead to serious economic consequences. On a societal level, compulsive gambling costs an estimated $6 billion per year, according to a study by the National Council on Problem Gambling. Individually, a male gambling addict accumulates an average debt between $55,000 and $90,000 whereas a female averages $15,000, by one estimate. Most do not have adequate resources to pay back what they owe. As a result, gambling addicts develop a high tendency to amass even more debt, suffer from other health issues, lose their jobs, strain their relationships or even commit crimes.
The gambling problem, however, is much bigger in some states than in others. With the upcoming Kentucky Derby reminding Americans to have fun while keeping their gambling habits in check, WalletHub’s analysts compared the 50 states to determine where the problem of excessive gambling is most prevalent. Our data set of 13 key metrics ranges from “presence of illegal gambling operations” to “lottery sales per capita” to “percentage of people with gambling disorders.” Continue reading below for our findings, additional expert commentary and a full description of our methodology.


https://wallethub.com/edu/states-most-addicted-to-gambling/20846/


Tuesday, January 12, 2016

Man sentenced for Palagio’s Grand Casino robbery



Man sentenced for casino robbery....



Brad Michael Zoanni, 23, was sentenced Monday to 20 years with the Department of Corrections, with 13 years of probation, for his involvement in two robberies.
He was sentenced by Judge Russell Fagg on Monday, along with felons in three violent unrelated cases.
Zoanni's accomplice, Robert Allen Boyden, used a gun to hold up the Stadium Club, 1041 Main St., at about 7:30 p.m. on Sept. 30, 2014. About five hours later, early on Oct. 1, 2014, the same gun-wielding man robbed the Palagio’s Grand Casino, 1720 Grand Ave., according to charging documents.
Zoanni was charged with two counts of robbery by accountability and his sentencing was part of a large plea agreement that included pleas in three other felony cases. 





Saturday, March 1, 2014

Woman pleads guilty to embezzling from Blackfeet



Woman pleads guilty to embezzling from Blackfeet

GREAT FALLS, Mont. (AP) — The former director of a federally funded aid program on the Blackfeet Indian Reservation has pleaded guilty to embezzling almost $300,000 from the program to support her gambling addiction.
 
Sandra Marie Sanderville of Browning pleaded guilty Thursday to embezzlement and fraud charges during a hearing before U.S. District Judge Keith Strong in Great Falls. A sentencing date has not been set, the U.S. Attorney's Office said.
 
Sanderville, 58, was director of the tribe's Temporary Assistance to Needy Families program from 2006 to 2010, during which the program received $12 million in federal funding.
 
Sanderville admitted she used various schemes to make overpayments to families, who then provided her with a cash kickback. Her scheme involved 16 to 20 program beneficiaries, including some who were ineligible for payments, court records said.
 
Prosecutors said Sanderville overpaid some recipients by adding children or grandchildren to the payment calculations, some real and others fabricated. She also failed to remove people from accounts when she knew they no longer lived in the household, court records said.
 
When the tribe began investigating the missing money, Sanderville tried to delete or destroy the files related to the fraudulent scheme. A backup computer file allowed investigators to re-create those transactions.
 
Sanderville told investigators she was gambling hundreds of dollars a week.
 
 
 
 
 
 

Wednesday, January 8, 2014

“Click your mouse and lose your house.”



Wealthy casino owner takes on Internet gambling

Posted: Tuesday, January 7, 2014 4:10 pm
Internet gambling is illegal in Montana, but a 2011 legal opinion by the U.S. Department of Justice and the approval of Internet gambling by state governments in Nevada, Delaware and New Jersey could be a harbinger of things to come.
 
An 80-year-old casino magnate worth $36.1 billion, however, is taking a stance against the spread of Internet gambling. Sheldon Adelson, the CEO of Las Vegas Sands Corp, ranked 11th wealthiest person in the world on the Forbes 400 list, has said he will spend “whatever it takes” to stop Internet gambling.

 
Adelson’s Coalition Against Internet Gambling is supported by Washington, D.C. lobbyists and public relations experts, along with some notable former elected officials. The group’s Web site is http://stopinternetgambling.com. Their slogan is “Click your mouse and lose your house.”

Adelson outlined his opposition to Internet gambling in a June 2013 op-ed in Forbes.

“When gambling is available in every bedroom, every dorm and every office space, there will be no way to fully determine that each wager has been placed in a rational and consensual manner,” he said.

“For example, the possibility of underage children finding ways to place online wagers and the possibility of people betting under the influence of drugs or being coerced are all scenarios that can happen when the person is only monitored by their own computer screen.”

Supporters of Internet gambling are quick to point out that Adelson’s stand seems self-serving — online gambling conflicts with his own gambling interests, which derive about 85 percent of their revenue from casinos in Macau and Singapore.

Among his opponents are Caesar’s, Resorts International, Boyd Gaming Corp. and Station Casinos.

Several major hedge fund managers have chosen to invest in Internet gambling, including George Soros, John Paulson and Leon Cooperman.

The U.S. Department of Justice helped unleash Internet gambling with a December 2011 legal opinion. The department concluded that the Interstate Wire Act only prohibits Internet gambling on sporting events. That cleared the way for states to allow casino-type gambling online.

As currently operating, software programs called “geo-locators” are used to make sure gamblers are working at a computer in a state where Internet gambling is allowed. The software is said to be 100 percent accurate. Pay-outs can be made to an account set up at a casino or mailed to the gambler by check.

Internet gambling is strictly prohibited in Montana, and interest groups in Montana have stated their opposition to Internet gambling, including the Montana Tavern Association, the Gaming Industry Association and the Montana Coin-Machine Operators Association.

A January op-ed in the Tavern Times, which is endorsed by the Montana Tavern Association, notes that some operators in Montana’s gaming industry believe legalized Internet gambling is inevitable, and “a fight against it is fruitless.” On the other hand, Montana’s gambling culture is special, the Tavern Times said.

“Internet gambling could have devastating effects on brick-and-mortar gaming businesses here in Montana,” the op-ed said. “Our state’s gaming setup is unique — a system based on small operators owning or vending their own machines, under fairly strict state regulation.”

One Montana casino owner told the Tavern Times the casino was still feeling the impacts of the 2009 smoking ban and the economic recession that followed. Internet gambling would make those impacts seem minor, the owner said.


http://www.flatheadnewsgroup.com/hungryhorsenews/article_eaaf926c-77f0-11e3-a9a7-001a4bcf887a.html

Thursday, December 19, 2013

Man arrested for Helena casino robbery charged now with sex, drug crimes



Man arrested for Helena casino robbery charged now with sex, drug crimes


HELENA — A man jailed in Helena after a casino robbery faces charges in Deer Lodge County that allege he was selling methamphetamine and smoking it with a girl with whom he was having sex.

Joshua James Kline has been in jail since Nov. 25 after an employee at the Copper Club casino chased away two would-be robbers, injuring Kline so badly that he was hospitalized.

Kline and his cousin, George Kelly Kline, are charged in the casino robbery.

The Dec. 11 warrant from Deer Lodge County says Joshua Kline faces charges of criminal distribution of dangerous drugs, endangering the welfare of children and a sexual assault charge.


http://missoulian.com/news/state-and-regional/man-arrested-for-helena-casino-robbery-charged-now-with-sex/article_c8ef4df8-666f-11e3-92ce-0019bb2963f4.html

Monday, October 21, 2013

Police arrest woman in connection with 4 casino robbery attempts in 24 hours



Police arrest woman in connection with 4 casino robbery attempts in 24 hours

Laurel and Billings police are searching for a woman, wearing a hat in this screen shot taken from surveillance video, who is wanted in connection to four casino robberies or attempted casino robberies in a 24-hour period.



Police arrest woman in connection with 4 casino robbery attempts in 24 hours
By EDDIE GREGG and SUSAN OLP
The Billings Gazette
October 19, 2013 10:11 pm



Read more: http://billingsgazette.com/news/local/crime-and-courts/police-arrest-woman-in-connection-with-casino-robbery-attempts-in/article_4c6073ee-bdee-539d-9a89-e4bf4621e53f.html#ixzz2iMGcvLvV

Friday, July 26, 2013

Lawsuit over GFalls casinos' smoking shelters



Lawsuit over GFalls casinos' smoking shelters


The Associated Press


The Cascade County health department and the owners of several casinos in Great Falls are in a battle over a workaround the casino owners believe allows their customers to gamble while smoking.

Brothers Doug and K.C. Palagi and their attorney and business partner Gregory Smith filed a lawsuit against the Cascade City-County Board of Health after they were threatened with a misdemeanor citation alleging their smoking shelters violated Montana's Clean Indoor Air Act, the Great Falls Tribune (http://gftrib.com/17yI16o ) reported Sunday.

The act prohibits smoking in enclosed public places, but allows for smoking shelters that "are partially open to the outside air."

The Palagis say their five shelters, built at a cost of $50,000 each, have open slots where the walls meet the roof. Employees don't deliver drinks to the shelters, which are closed off from the rest of the casino.

The state Gambling Control Division requires video gambling machines to be in enclosed public spaces, where the clean air act says smoking is not allowed.

Competitors also argue that the Palagis aren't playing by the same rules they have to, while the Palagis argue they're businessmen who have found a competitive advantage within the law.

Bars and casinos saw trade decline when the Montana Clean Indoor Air Act went into effect for such businesses in October 2009.

The Gambling Control Division said between 2009 and 2010, the division saw its first decline in tax revenue from video gambling machines. Part of the decline was due to the recession.

The Palagis' first smoking shelter opened in August 2011.

"When we decided to build the first two (smoke shelters), it wasn't like we decided we discovered this great loophole," Smith said. "We were thinking: 'Hey, this is a win-win.'"

He said when customers walk into casinos they have to walk past people who are outside smoking.

"We were thinking we'll get these people out of the way so nonsmokers don't have to walk through the smoke. They're happy, and we are," Smith said.

Court records say the Palagis submitted proposed floor plans for the roofed smoking structures to the Liquor Licensing Division and the Gambling Control Division and that they were approved by the County Board of Health.

In April, District Judge Greg Pinski denied the health department's request for an order closing the shelters until the issue is decided at trial.

"The board failed to show it will suffer any irreparable harm," Pinski wrote. He said the health board failed to present evidence that an injunction was in the public interest while the Palagis presented evidence that the public is better served by the smoking structures.

Following Pinski's decision, a group of residents including those in the health profession and business owners sought to intervene in the lawsuit. They created a nonprofit group called Montanans Who Support the Montana Clean Indoor Air Act.

Former lobbyist Jim Ahrens was appointed president of the nonprofit. He says a couple of bar owners also joined the group because they don't want patrons smoking indoors and see the Palagis smoking shelters as an illegal competitive advantage.

"It's a public health issue," Ahrens said. "I've been around Montana with all that smoking stuff, and I'm more than happy now to not have to go into any public buildings with smoke," he said.
A trial is expected this fall.

The county attorney's office declined to comment on the pending litigation.


http://www.miamiherald.com/2013/07/22/3514508/lawsuit-over-gfalls-casinos-smoking.html

Tuesday, May 21, 2013

Casino Robberies




Suspects sought in casino robberies


Friday, September 28, 2012

Indian tribes, with more clout and money, find ally in Obama




Published: Wednesday, September 26, 2012

Indian tribes, with more clout and money, find ally in Obama

Thursday, September 6, 2012

Suspect arrested for string of casino robberies




Suspect arrested for string of casino robberies
 


http://helenair.com/news/local/crime-and-courts/suspect-arrested-for-string-of-casino-robberies/article_27df706a-f7ed-11e1-88eb-001a4bcf887a.html

Saturday, April 14, 2012

Kalispell casino robber given two-year sentence

Kalispell casino robber given two-year sentence
Friday, April 13, 2012
The Daily Inter Lake

The 20-year-old Kalispell man who robbed a casino runner at gunpoint was sentenced Thursday in Flathead District Court to two years in jail plus eight years suspended.

Jesus Din pleaded guilty to felony robbery Feb. 23 for the crime at the West Idaho Street Lucky Lil’s Casino last Dec. 1.

Din’s plea agreement stipulated a sentence of five years in jail and five years suspended, but District Judge Katherine Curtis chose to issue the lighter sentence.

“It was just a decision of hanging out with friends, the idea [of the robbery] came up and everybody thought it was a good idea,” Din said at his sentencing.

Din explained that he originally was not the person who was going to commit the robbery, but the other person got scared and he decided to do it.

Kyser Nelson, 19, Kalispell, recently was given a three-year deferred sentence on a felony charge of accountability to robbery for driving Din to and from the casino and providing him with the gun he used in the crime.

The robbery sentence marks the latest chapter in Din’s criminal history.

Din was convicted of a narcotics-related felony the day before his 18th birthday and was on probation for one year.

He then was convicted of one offense of driving under the influence, a hit-and-run accident in which he struck another vehicle and being a minor in possession of alcohol.

All those offenses occurred while he was living in San Diego.

During his testimony before the sentence was handed down Thursday, Din admitted he is currently on court-ordered probation until 2016 and still has $800 in fees to pay on those prior crimes.

He moved to Kalispell around Oct. 1, 2011, and committed the robbery roughly 60 days later.

Sunday, April 1, 2012

Simpson remembered for battling the expansion of gambling

Horse Sense: Simpson remembered for battling the expansion of gambling
By CHARLES S. JOHNSON Gazette State Bureau The Billings Gazette

HELENA -- People remembered Ellen Engstedt Simpson at a memorial service Friday for her many good qualities and deeds.

Simpson, 65, died March 23 after a long battle with cancer after surviving an earlier bout.


"With Ms. Ellen, you never had to wonder where she was coming from," said Todd Everts, the Legislature's chief lawyer and a longtime friend. For her, "honesty is the best form of sugarcoating," he said.

Many also will remember Simpson for her efforts at the Legislature fighting against the expansion of legalized gambling and insisting on the proper accounting of electronic video gambling receipts so gambling taxes could be calculated accurately.

As her obituary said, "she was known statewide as the 'Anti-Gambling Lady.'"

"Ellen almost single-handedly forced the gambling industry to accept some accountability," said an ally, David Ewer, a former legislator and budget director.

Simpson helped found "Don't Gamble with the Future" and lobbied for the group. That meant frequent battles with powerful lobbying groups that represent taverns and casinos.

The history of gambling in Montana has been one of creeping expansionism.

The Legislature passed laws in the 1970s to legalize live bingo and card games. Some attorney general and Supreme Court opinions in the 1980s expanded these laws to legalize video poker and keno machines. The 2011 Legislature added a new video game known as "line games," or slot machines by another name.

Two decades ago, the big push was to legalize blackjack. By then, Simpson had had enough. She ran tiny ads in newspapers around the state to form a group to fight expanded gambling.

"I don't think she hated gambling, per se," said Sue Rolfing of Columbia Falls, a leader of the group who became a close friend. "She hated what it was doing to Montana and our future. I think her main thing was to nip it in the bud."

They were adamant about fighting the legalization so-called "house banking games" like blackjack.


Without her rallying the troops, I think we would have 21 and that cat out of the bag," Rolfing said.

Rolfing and other women from the Flathead often would drive down in the winter to testify at a legislative hearing the next day. They would stay in Simpson's basement.

"Our reward is that we got to be with Ellen," she said. "She wasn't the church lady. She was a ton of fun."

As soon as the group helped defeat one attempt at expanding gambling, another would surface.

One was Destination Montana, a pie-in-the-sky proposal for 10 wide-open, Vegas-type casinos in Butte. The promoters tried to sweeten the deal with promises of a theme park, a stadium, three pro golf courses, 30 musical theaters and sports training camps.

Working with the Butte people opposed to the idea, Don't Gamble with the Future helped defeat the bill in 2003.

Simpson's last stand against gambling came in the 2011 session when she organized testimony to help kill a bill to legalize live blackjack games and use the permitting fees "for the care of unfortunate and disabled persons."

Those fees would have raised only $98,838 and attracted $150,000 in federal funds to help disabled, mental ill, abused, elderly, developmentally disabled, domestic violence victims, suicidal Montanans and those needing long-term or foster child care.

Simpson called it reprehensible to link gambling activities to funding "for the least able among us." Treatment professionals and law enforcement officials can document cases of child abuse and neglect and family violence cased by addiction to gambling, she said.

"So it's an especially cruel twist to use these particular needs as a ruse to pass a major gambling expansion bill," Simpson told a Senate committee.

Don't Gamble with the Future will carry on despite Simpson's death.

"But we won't have our ear to the ground in Helena," Rolfing said. "But her spirit I hope will infuse us with the same dedication and passion that she had."



Read more: http://billingsgazette.com/news/state-and-regional/montana/horse-sense-simpson-battled-gambling-expansion/article_d7371444-531a-5077-890b-fc194379d61b.html#ixzz1qnaUbYpS

Thursday, February 9, 2012

Missoula woman sentenced for embezzling almost $40K

Missoula woman sentenced for embezzling $40K

The Missoulian ( http://bit.ly/w8R4Jh) reports Kathy Linde Bordner told police she took the money to feed a gambling addiction. She pleaded guilty in November.

Missoula woman sentenced for embezzling almost $40K from employer
By JAMIE KELLY of the Missoulian


A woman who embezzled nearly $40,000 from her employer was sentenced to 12 years in prison, all deferred, in front of Missoula District Court Judge Karen Townsend on Tuesday morning.

Kathy Linde Bordner must also serve 30 days in the Missoula County Detention facility and repay her former employer more than $37,000.

A former employee of The UPS Store in downtown Missoula, Bordner wrote checks on her children's bank accounts to cover daily cash withdrawals, altered the business' bank deposits and pocketed cash payments from customers to feed her gambling addiction.

Bordner pleaded not guilty to the charge in January 2011, but changed her plea last November. She has never been jailed on the charge.

The store's owner, Laura Vercruyssen, began investigating Bordner's activities after a customer complained of receiving failure-to-pay notices from the business. That customer repeatedly asked to see Bordner, believing her to be the owner.

In May 2010, Vercruyssen met several times with Missoula police officers, who recommended she try to document the thefts. Within two days, Vercruyssen found evidence of around $6,000 having been stolen. Officers then advised her to hire a forensic accountant for a thorough vetting of her books. The accountant, Heidi Foley, not only determined how much had been stolen - $38,861 - but also how it disappeared from The UPS Store till.

Among Bordner's schemes:

• She used checks from her family's accounts, including her children's, to cover cash taken from bank deposits, or used customer checks she had been holding. That accounted for $8,977.

• Bordner wrote a high number of "cash paid outs" from the store till. Normally used for lunches or small office supplies, those payouts amounted to $2,868.

• Bordner falsified numerous returns and discounts paid to customers for merchandise and shipping services, when in fact the inventory was dwindling and the packages were shipped. That amounted to $14,729. When interviewed by police, Bordner admitted to numerous incidences of theft, and claimed she had a severe gambling problem she was trying to hide from her husband.



Read more: http://missoulian.com/news/local/missoula-woman-sentenced-for-embezzling-almost-k-from-employer/article_2313ab06-5210-11e1-bed7-001871e3ce6c.html#ixzz1lt9Wmje9

Thursday, January 5, 2012

Man charged with robbing Bowser's Casino

Man charged with robbing Bowser's Casino, four other felonies
By ANGELA BRANDT Independent Record

Police have located and charged a Helena man believed to be the armed robber who made off with more than $9,000 from a Helena casino last month.

Prosecutors filed paperwork in Justice Court on Wednesday charging David Gary Burton with robbery along with four other felony counts, including burglary, theft and deceptive practices.

Burton, 35, is accused of pointing a handgun at an employee and demanding money during a robbery at Bowser’s Lucky Dog Casino at 3140 Dredge Drive on Dec. 17. The robber was clad in a dark ski mask at the time of the robbery.

Burton is being held in Lewis and Clark County Detention Center in lieu of $100,000 bond.

Court documents allege Burton told a friend he had stolen a minivan at King Lewy’s Auto on North Last Chance Gulch earlier that same night and used it as the getaway vehicle for the robbery. Burton allegedly had bragged to the friend about the money he had stolen from the casino. Investigators found this lead credible as the amount was similar to the cash taken from the establishment and that number had not been publicized, the documents note.

Another charge of felony theft has been filed for stealing the cash.

During a pool game with another acquaintance just before the casino robbery, Burton allegedly informed the man that he intended to commit a robbery. Court documents say the stolen van was seen on surveillance footage near the Helena bar where the pool game took place and later parked near Bowser’s.

Burton also faces two charges of felony burglary for allegedly stealing the minivan after breaking into the lot’s office and stealing the keys, and also burglarizing a home on Green Meadow Drive two days before the robbery.

Court documents allege Burton shattered a window at the home to gain access and then stole a laptop computer and a credit card from the homeowner.

Burton, who is on probation for a burglary conviction in Jefferson County, also is charged with deceptive practices for allegedly using the stolen credit card to purchase fast food and fuel.

Helena police investigated these crimes along with state probation and parole officers and the Lewis and Clark County Sheriff’s Office.

Thursday, December 29, 2011

Native American Loan-Sharking

Tribe's high-interest online lending venture booms
As states rein in risky lending, Indian tribes use sovereignty, Internet to make loans
By Matt Volz, Associated Press AP

HELENA, Mont. (AP) -- An Indian reservation in the heart of Montana's farm country may seem an unlikely place to borrow a quick $600, but the Chippewa Cree tribe says it has already given out more than 121,000 loans this year at interest rates that can reach a whopping 360 percent.

As more states pass laws to rein in lenders who deal in high-interest, short-term loans, Indian tribes like the Chippewa Cree and their new online lending venture, Plain Green Loans, are stepping in to fill the void. The Internet lets them reach beyond the isolated Rocky Boy's Indian Reservation to borrowers across the nation, while tribal immunity has allowed them to avoid bans and interest-rate caps several states have set.

To Neal Rosette, Plain Green Loans CEO and the Chippewa Cree's former executive administrative officer, it's a win-win. The online lending venture is a resource for people who can't or won't borrow from banks, while it gives the tribe a steady revenue stream and jobs with unemployment on the reservation at nearly 40 percent.

Rosette said this model could be the successor to gambling for tribes looking for an economic boost. Some tribes have owned online lending businesses for several years, and Rosette said the Chippewa Cree and three other tribes have started the Native American Lenders Alliance to encourage more.

"I believe this is the new outlook for Indian Country, not just Rocky Boy," Rosette said. "We are sovereign nations and we have the ability to create our own laws that regulate our businesses such as this."

That's a problem for consumer groups and the states that have tried to bring such lending under control. The issue with these loans, consumer advocates say, is that their high interest rates make it too easy for a borrower to become trapped in a cycle of debt as they have to borrow more to repay their original loans.

Forty-two states and the District of Columbia have taken different regulatory approaches, from outright bans to interest-rate caps. Montana voters last year passed a ballot initiative that capped such loans at a 36 percent annualized interest rate, which has led to a nearly 83 percent drop in so-called deferred deposit lenders, according to Montana banking and financial institutions director Melanie Griggs.

But as the cap drives lenders out of the state, more people are turning to the Internet, which adds the danger of passing along personal bank account information that can be distributed to other lenders and brokers and can lead to overdrafts.

"When they were getting it from brick-and-mortar businesses it was easy to monitor how many people were getting payday loans. Now that it's all on the Internet, it's harder to monitor," Griggs said.

The Chippewa Cree tribe says its loans are not payday loans, those two-week loans with annualized interest rates of more than 600 percent or more. Instead, the tribe says, its highest annualized interest rate is 360 percent. Payments are made over a period of months, usually in monthly or biweekly installments.

By any account, those rates are still very high. By the company's own example, a first-time borrower who takes out a $600 loan would end up paying $1,261.32 over 12 bi-weekly payments.

Less than a year old, Plain Green Loans already has an F rating by the Better Business Bureau after the agency received 20 complaints mainly dealing with billing and collection issues. Eleven of the complaints were resolved, but the company didn't respond or failed to resolve the other nine, according to the BBB.

Rosette said those complaints are relatively few when compared to the thousands of loans the company has administered.

"We've got a process in place that we believe is very quick at handling any type of complaint that we get. That's part of this industry, complaints, regardless of who you are," Rosette said.

As long as it doesn't make any loans to Montana residents, state prosecutors plan to let Plain Green Loans and the Chippewa Cree tribe be.

"We haven't looked specifically at the tribe," said assistant attorney general Jim Molloy. "We've not pursued it based on the understanding with the tribe that they're not lending to Montanans."

Rosette confirmed that the tribe is not lending to Montana residents, but he bristled at the idea that the state could enforce its rate cap even if the tribe were lending in the state.

"If we wanted to defend our position in Montana, we could. But why? It's a small market. It wasn't worth the fight if there was one," Rosette said.

Other states have entered legal battles with lending businesses owned by tribes. A closely watched case is playing out now in Colorado, where the state is attempting to sue Western Sky Financial, an online lender owned by North Dakota's Cheyenne River Sioux Tribe.

Colorado is trying to prevent Western Sky from making loans within its borders, while the tribe counters that the state is attempting "to reach into the reservation and regulate commercial activity."

Other legal battles are being fought or have been fought in California, West Virginia, Missouri, New Mexico and Maryland, creating an unsettled regulatory environment, said Jean Anne Fox, director of financial services at Consumer Federation of America, a consumer advocacy group in Washington, D.C.

"It's a real threat to the ability of state regulators to enforce the loan market to police caps and other consumer protection measures," Fox said.

Some non-tribal businesses have seen tribal immunity as a shield that they can use to make high-interest loans outside of the regulatory spotlight and a way to avoid state law enforcement, Fox said. So they affiliate themselves with the tribe and conduct business under that shield, she said.

It can be difficult to obtain records that define the relationship between a tribe and non-tribal entity. That's the case with Plain Green Loan's relationship to a Fort Worth, Texas-based company called Think Finance Inc.

Think Finance says on its website that Plain Green Loans is one of its "products," along with online lenders owned by two other tribes.

"Our latest product, Plain Green, launched in April. Customers in need of emergency cash can apply online in minutes, get an answer in seconds, and get cash as soon as the next day," a Think Finance press release from September reads.

Neither the tribe nor Think Finance returned calls and emails for comment on the relationship between the companies. Better Business Bureau spokeswoman Chelsea Dannen said her agency also tried to contact Think Finance to clarify the relationship but received no response.

Rosette said Plain Green Loans is wholly owned by the tribe, though he acknowledged that his staff of 25 isn't equipped to handle the volume. It employs a Las Vegas call center and uses brokers to provide it with databases of potential borrowers. It borrows just enough money each day to cover its loans.

There are a lot of things the tribe won't disclose. Rosette says the default rate is on Plain Green loans is proprietary information. He won't name the companies the tribe is involved with or say where company borrows its money or at what rate.

If it turns out that Plain Green Loans is not a bona fide tribal lender, that could change state prosecutors' laissez-faire approach to the company, Molloy said.

But just the obscurity and the uncertain relationship between the tribe and the Texas company exemplify the underlying problem with tribal online lending businesses, Fox said.

"We're not sure who's doing what here," Fox said.



Sunday, June 19, 2011

Former Lucky Diamond casino manager accused of embezzling nearly $400K

Former Lucky Diamond casino manager accused of embezzling nearly $400K
By MARK BOATMAN for the Missoulian


A former manager of Lucky Diamond casinos in Missoula and Billings has been accused of embezzling more than $383,000.

Scott Peterson allegedly used casino funds to repay personal financial obligations and attempted to cover his tracks by altering accounting records, according to court records filed in Missoula County Justice Court.

Peterson is charged with three counts of felony theft by embezzlement, one count of felony deceptive practices and one count of felony evidence tampering.

Peterson, who court records claim confessed to the embezzlement, is scheduled to make an initial appearance in Justice Court on June 28.

Each count carries a maximum sentence of 10 years in prison and a $50,000 fine.

Peterson allegedly committed the crimes between January 2006 and July 2010, and most occurred in Missoula County.

According to an affidavit filed by prosecutors in Justice Court, here's how the case unfolded:

Peterson was hired in 2006 to manage Lucky Diamond casinos in Missoula, Billings and Billings Heights. As manager, he wrote checks, made bank deposits, paid bills and made data entries in the accounting system.

Casino owners noticed discrepancies in their financial records sometime during late 2009 or early 2010. A fraud examiner conducted a financial audit and concluded Peterson used business checks and credit cards to pay for personal expenses. Peterson also allegedly took cash from casino vaults and issued IOUs that were never repaid.

A review of the financial audit by Montana Gambling Investigation Bureau agent Tim Theisen indicated Peterson also altered entries on the casino's accounting system sometime during July 2010.

The loss was finally totaled at more than $383,000.

Peterson was eventually confronted by casino management and admitted to embezzling from the business.

In an interview in April with Theisen, Peterson admitted to embezzling money from the casino and falsifying accounting records to conceal his criminal activity.

Peterson has made partial repayment of $64,000, but he also apparently bounced a check intended to repay some of the IOUs he'd previously written.

Saturday, May 7, 2011

Billings man sentenced to 21 months in federal prison for mail fraud

Billings man sentenced to almost 2 years in federal prison for mail fraud
By the Associated Press

BILLINGS - A 37-year-old former claims adjuster who acknowledged stealing more than $150,000 from his employer to feed a gambling addiction has been sentenced to almost two years in federal prison.

Ryan Paul Shipman appeared in court in Billings on Thursday, and U.S. District Judge Richard Cebull sentenced him to 21 months in prison and ordered him to pay $155,015 in restitution.

Shipman, of Billings, pleaded guilty in February to one count of mail fraud for stealing that amount from Mountain West Farm Bureau Mutual Insurance Co., headquartered in Laramie, Wyo.

Prosecutors say the scheme ran from October 2008 until last September, and Shipman submitted false claims and invoices to the company and split the money with an unindicted co-conspirator.

The Billings Gazette reports the investigation into the scheme is continuing.

Sunday, March 6, 2011

Pathological gamblers often guilty of cooking books

Pathological gamblers often guilty of cooking books

Trust busters: Embezzlers betray unsuspecting employers
CLAIR JOHNSON Of The Gazette Staff‌

The Billings Gazette

Bill Underriner was stunned when he learned that his bookkeeper of 20 years had embezzled more than $200,000 from his dealership, Underriner Motors.

“That’s got to be wrong,” Underriner said he remembered thinking. “It can’t be her.”

But Ronda Marie Walter admitted federal wire fraud charges for skimming $205,000 from the company over about three years. She did it by fixing the books to hide cash she was stealing.

A federal judge sentenced Walter to two days in jail, house arrest and community service. The sentence was designed so Walter could continue caring for son, who had a heart transplant. She also paid $205,865 in restitution by selling her house and borrowing money from relatives.

The company, which Underriner described as “one big family” of 65 employees, had been generous with Walter because of her son. Underriner had leased a van to Walter at a reduced rate and let her work shorter hours to care for her son.

The restitution didn’t cover all of Underriner’s investigative expenses, and he doesn’t know where all of the money went. Walter had a lot of toys, like motorcycles, for her children, he said.

“Since the sentencing, I’m over it,” Underriner said. “I have advised my employees I have moved on and they should too. I trust every one of my employees until they prove me wrong.”

Beyond the financial havoc, employee embezzlements break a bond inherent in any business or organization — trust. The betrayal can be devastating for the victims.

“It’s a crisis. The trust is just completely broken,” said Margaret Gallagher, a deputy Yellowstone County attorney who prosecutes embezzlements.

Employee thefts have been growing in recent years and may be a reflection of a tough economy and gambling addictions, law enforcement officials said. Gallagher said she’s seen an increase in cases in the last six years. About 20 percent of her caseload, roughly 25 cases a year, are employee thefts, with about 75 percent of them involving embezzlements, she said.

Assistant U.S. Attorney Ryan Archer, who prosecutes financial crimes, said a flush economy tends to mask embezzlements. But when times are tough, businesses pay closer attention to the bottom line and catch anomalies.

For Jim Markel, it was a gut feeling that something was wrong at his company, Red Oxx Manufacturing, a Billings firm that makes high-end luggage. When another employee filled in for vacationing bookkeeper, Crystal Deloris Bryant, the company learned that Bryant had been embezzling to pay her credit card bills.

“It was a serious blow,” Markel said. Bryant was “a criminal mastermind,” he said.

As is common in most small businesses, Markel was focused on growth and trusted his employees.

“I empower people. I give them a lot of responsibilities. At some point you have to trust somebody,” he said. Bryant’s thefts, he said, were “a total betrayal of the relationship.”

An 18-month investigation by Red Oxx and the Billings Police Department found that Bryant had stolen about $81,000 by making 92 payments from the company’s bank account to her credit card accounts.

Deputy Yellowstone County Attorney David Carter said Bryant had no addiction or expenses like medical bills.

“She just wanted a personal bank account. She was someone who liked to buy stuff — the knickknacks of life,” he said.

Embezzlements, Carter said, seem to hit the opposite ends of the spectrum — very big businesses and the small operators and organizations. Small operations get taken because they have limited resources and perhaps can’t afford an audit, he said. Big businesses get taken because an employee can maintain a low profile, he said.

Greed and gambling combined with opportunity are the most common motives for embezzlers, investigators said.

“People seem to want the brass ring. They want the new car. They want the better house. They want a better life. They want travel, vacations,” Archer said. “They can’t restrain themselves.”

Embezzlers also have a sense of entitlement about their jobs and rationalize stealing by thinking, “I should be getting more,” or “I’m so smart. I can beat the system,” Gallagher said.

Gambling and greed were behind one of Montana’s biggest embezzlements in recent years. Hardin resident Vickie Diane Becker, a 30-year employee of First Interstate Bank in Hardin, admitted stealing $1.6 million in a five-year loan scheme she devised while serving as the bank’s vice president.

At Becker’s sentencing, Lyle Knight, First Interstate’s president and chief executive, called Becker’s thefts “diabolical.” The bank’s top auditor worked a full year to sort out the scheme.

“We saw new jewelry often. We saw her drive a brand-new truck. Our money was used in Deadwood,” a South Dakota town where Becker and her husband gambled, Knight said.

Becker, 51, apologized at sentencing, saying her husband’s gambling problem and family debt put them in a bind. She stole to help her family, not to be greedy, she claimed.

Embezzlement is “a very common behavior with pathological gamblers,” said Mona Sumner, chief operations officer and clinical director at Rimrock Foundation, which offers addiction treatment programs. A significant number of gambling addicts resort to crimes, like embezzlement, when they get desperate and run out of family and friends to bail them out, she said.

Bigger businesses may be able to weather the financial hits, and insurance can cover losses and expenses, but embezzlements can be devastating, especially for small firms or nonprofits that may not have the resources to find and investigate problems.

Former Bearcreek resident Carl Peterson, a self-employed contractor, and his girlfriend, Kristi Wagner, had to rely on relatives for loans to pay their bills after Peterson’s bookkeeper embezzled from him through a credit card scheme.

The bookkeeper, Vicki Lynn Heater of Red Lodge, spent the money on prescription drugs through an online supplier, paid bills and bought other items.

Peterson had hired Heater to manage his business and personal accounts.

“We thought this was a way to free up our time and stay on top of things,” Wagner said. “You want to trust people, because honestly, people hate to do their books.”

At sentencing, Peterson said he lost his hair and had sleepless nights from the stress of trying to restore his finances and remove fraudulent credit charges.

Heater, who opened credit cards in Peterson’s name and used his current accounts, had ruined his credit and burned through his home equity loan, Peterson said.

“Now I’ve got to work another 20 to 30 years,” he said.

Six months after sentencing, Peterson, 51, suffered a stroke that left him unable to work, Wagner said. The couple has since moved to Whitefish to be closer to Wagner’s parents. Peterson is having to learn again how to walk and has difficulty speaking.

“We can’t get that money back. We never will,” Wagner said.

Embezzlements hurt not only the business or organization but also can affect vendors and customers, said Gallagher. “Every embezzlement is a minor explosion in the business world,” she said.

Plus, it’s embarrassing.

Markel knew the Red Oxx embezzlement would become public and said it was humbling to face employees and customers.

“I had to explain to my employees why they didn’t get Christmas bonuses,” he said. “I let this happen on my watch.”

Red Oxx had to delay an expansion, use its line of credit, which it has since repaid, and work twice as hard to recover, Markel said. He worried about customers’ reaction, but customers rallied behind the business, he said. The company is growing again and just posted its best year ever, he said.

The Northern Plains Resource Council also recovered from embezzlement by a bookkeeper who stole $375,000 to support a gambling addiction, and the subject is still sensitive almost eight years later.

“I have a stomachache just thinking about it,” said Teresa Erickson, staff director of the Billings-based nonprofit environmental organization. “It was such an emotional thing because you’ve been betrayed. It’s embarrassing. It’s humiliating. I don’t think people realize what a horrible experience it is for people.”

The loss amounted to about half of NPRC’s annual budget. “It was all of our reserve fund,” Erickson said.

NPRC had financial reviews but not full-blown audits, because they are expensive, Erickson said. She thought she was being frugal.

“We do an audit every single year now,” Erickson said. “We were way too trusting.”

NPRC’s leadership and staff were supportive in helping to develop a recovery plan, implement internal controls and rebuild confidence, she said. Without that support, NPRC might not have survived, she said. Only one foundation withdrew support because of the embezzlement.

NPRC also received calls from other nonprofits from around the country asking about its experience. Erickson wrote an article about how NPRC survived embezzlement for the spring 2005 issue of the Grassroots Fundraising Journal and continues to field inquiries about the article.

Investigations often begin when victims contact law enforcement with suspicions or evidence. Depending on the circumstances, the case can be investigated by federal agencies, like the FBI, Secret Service and IRS, by local law enforcement or by a partnership of both.

The Secret Service, for example, worked with local agencies on two Carbon County cases, including the Peterson embezzlement. Bryan O’Neil, the Secret Service’s resident agent in Billings, said the agency’s goal is to have an impact in the community. While the Peterson’s case did not involve a large amount of money by agency standards, “it’s everything” to the victims, he said.

Building cases can take months as investigators analyze financial records, interview witnesses and review internal probes.

“I’m just following the money,” said Billings Police Detective Brett Lapham, who works financial crimes. Most of his investigations are straightforward but time-consuming, he said.

Some schemes are more complex and are limited only by a person’s creativity, investigators said.

FBI Special Agent John Teeling, who investigated Becker’s Hardin bank embezzlement, said Becker, having worked there for so long, “knew everything about the bank from soup to nuts.” Becker changed balances and hid money in accounts to avoid detection by auditors, he said.

When Teeling confronts a suspect, he lays out the evidence.

“I graciously ask them to give me their side of the story, and they often do,” he said. “They are often a mess trying to maintain a stable cover. Most of these people are very nice people.

“They’re able to do it because people like them.”

Embezzlers tend to be women working in accounting or bookkeeping jobs, investigators and prosecutors say, at least in part because those occupations have been dominated by women. Bookkeepers who handle the money, Lapham said, “can cook the books any way they want to.”

More often than not, prosecutions result in guilty pleas.

“I’ve yet to go to trial on anybody,” Lapham said. “Once we find them, the numbers don’t lie. It’s hard to argue against that.”

Restitution to victims is rare because the money usually is gone, having been spent on trips, entertainment or gambling, officials said.

“It’s amazing how quickly the money goes in these cases,” Archer said. Leftover assets, like a boat, depreciate so fast it doesn’t make sense to seize them, he said.

Markel laughed when asked whether he’d get restitution.

“I don’t think so. We’ll see,” he said. “I’m not going to sit there and lose sleep over it. Not anymore. I tend to always look forward. This will be a chapter in the history of this company, and thankfully, it wasn’t a death blow.”