Issue May 31, 1996 Native American Press/Ojibwe News
Wadena trial new chapter in 100-year theft of land, resources on White Earth
story by Gary Blair
For many White Earth enrollees, the trial has become the latest chapter in
the century-long theft of land and timber from reservation members. As
before, so-called Indian leaders had brokered the thefts. And, as before,
local merchants were quick to cash in on the ill-gotten gains.
Along with the fancy cars and pickup trucks, gang leaders also
purchased recreation vehicles. (snowmobiles and all-terrain vehicles) at
local sports dealerships with the allegedly stolen funds.
On Monday, federal prosecutors will start the election fraud
portion of the trial.
Excerpts of testimony/evidence presented at at federal fraud trial of
White Earth reservation's Darrell 'Chip' Wadena government
White Earth reservation has one of the highest poverty rates in the state,
and its youth suicide rate per-capita is said to be one of the highest in
the world.
--White Earth executive director Darwin 'Darb' McArthur: reservation has
had to borrow money to makes its payroll at least 6-7 times in the last
couple of years; the reservation has a credit line of $1.3 million;
questioned further admitted that some of the funds received by the Wadena
government were not easily traceable through the reservation's financial
records. Tribal officials gave themselves hefty raised during meetings
unpublicized or closed to other members. Officials appointed themselves to
non-existant gaming and fishing commissions to add tens of thousand of
dollars to their regular saleries.
--Bemidji CPA Henry Moller, whose accounting firm conducts audits for white
earth RBC:reservation generates about $55,000,000 in annual income ($33
million from the casino, the remainder from cottage businesses, and state
and federally funded programs
--IRS investigator Mike Nelson: in 12993 alone, gaming commision payments
to Wadena totalled $58,400.00; sec/treas, Jerry Rawley - $49,725.00;
councilman, Rick Clark - $55,000.00. Wadena's yearly salary at the time
reported to be $240,000. Rawly and Clark's annual salaries said to be
just over $200,000. Part of gaming commission money used to purchase new
$126,000 tax-free GMC from car dealer in Landcaster, PA. Wadena used
$10,000 of his 1993 commission check as down-payment for $29,831.72 auto
loan on a 1992 cadilac he bought for his wife. Wadenas then used the
$31,000 of gaming commission funds to pay federal income taxes.
Inidividual 'commission' members were actually on travel outside of the
reservation during the time that some of the gaming commision meetings were
supposed to have occurred. Travel records show Wadena was actually in
Hawai`i during the time of one of the commission meetings. Rawley's
signature was testified to be on all of the meeting minutes.
feather eaglerock, leech lake rez
english is a foreign language. reclaim the language of your people and
send it to the future as your gift to your grandchildren's grandchildren.
di-ka-ne'-tsv a'-qua-tse'-li ha-htv-gi, wa-do' do-da-da-go'-hv