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Date: 08-19-2019
Case Style:
United States of America v. John A. Crosby, Ines S. Crosby and Leslie A. Lohse
Case Number: 2:17-cr-00006-MCE
Judge: Morrison C. England, Jr
Court: United States District Court for the Eastern District of California (Sacramento County)
Plaintiff's Attorney: Matthew M. Yelovich
Defendant's Attorney: Eliott Remsen Peters for John A. Crosby
Benedict Yung Hur and Erin E. Meyer for Ines S. Crosby
Jerome Price - FPD for Leslie Lohse
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Description:
Sacramento, CA - Shasta and Glenn County Residents Plead Guilty to Multimillion Dollar Embezzlement Scheme and Criminal Tax Offenses
Former Members of Tribal Leadership Admit to Lying to Federal Officials and Falsifying Document During Investigation
John A. Crosby, 56, of Redding; Ines S. Crosby, 76, of Orland; and Leslie A. Lohse, 64, of Glenn, pleaded guilty to conspiracy to embezzle or steal from a tribal organization, as well as tax fraud and tax evasion offenses.
“The defendants used the Tribe’s accounts as their personal piggy banks,” said Kareem Carter, Special Agent in Charge, IRS Criminal Investigation. “For at least five years the defendants took more than $4.9 million of the Tribe’s money and intentionally failed to declare it as income to the IRS. This resulted in a tax loss of over $1.6 million.”
“This case sends a clear message that no one is above the law and tribal accounts cannot be used for personal gain, regardless of their perceived influence on the success of tribal business. These individuals diverted millions from tribal accounts-funds intended to help tribal members-- for extravagant, unapproved travel and personal luxuries,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case is a result of successful collaboration with IRS Criminal Investigation. The FBI is committed to working with our state, local and federal partners to conduct thorough investigations to ensure all who violate the law are held accountable for their actions.”
According to court documents, from approximately January 2009 through May 2014, the defendants took millions of dollars from the Paskenta Tribe of Nomlaki Indians without tribal or legal authority, taking advantage of their positions on the Tribal Counsel and in prominent leadership positions in the tribe. The defendants used this money to buy homes, vehicles, luxury vacations (including trips to Africa, South America, and Hawaii, as well as private and chartered jet travel), high-value entertainment (such as a trip to the World Series), familial expenses, and precious metals. John Crosby and Leslie Lohse did not declare these amounts on their respective tax returns as income, while Ines Crosby failed to file tax returns every year since at least 2010. All three individuals then took a series of steps to attempt to conceal their actions: they created a written employment agreement in 2014 that appeared to be from 2001 and authorized their use of funds, and then told federal investigators that the document was from 2001, knowing at the time that that was not true.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.
All three defendants are scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Jan. 30, 2020. The defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy count. John Crosby and Leslie Lohse face a statutory maximum of three years in prison and $100,000 fine for their respective tax fraud counts, and Ines Crosby faces a statutory maximum of one year in prison and a $25,000 fine for her failure to file count. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges:
John A. Crosby:
CONSPIRACY TO EMBEZZLE OR STEAL FROM A TRIBAL ORGANIZATION
(1)
EMBEZZLEMENT AND THEFT FROM A TRIBAL ORGANIZATION
(2-22)
ALTERATION OR FALSIFICATION OF RECORDS IN FEDERAL INVESTIGATION
(50)
FALSE STATEMENT TO FEDERAL AGENT
(52)
MAKING AND SUBSCRIBING TO A FALSE TAX RETURN
(55-59)
Ines Crosby:
CONSPIRACY TO EMBEZZLE OR STEAL FROM A TRIBAL ORGANIZATION
(1)
EMBEZZLEMENT AND THEFT FROM A TRIBAL ORGANIZATION
(23-44)
ALTERATION OR FALSIFICATION OF RECORDS IN FEDERAL INVESTIGATION
(50)
FALSE STATEMENT TO FEDERAL AGENT
(54)
FAILURE TO FILE TAX RETURN
(65-69)
Leslie Lohse:
CONSPIRACY TO EMBEZZLE OR STEAL FROM A TRIBAL ORGANIZATION
(1)
EMBEZZLEMENT AND THEFT FROM A TRIBAL ORGANIZATION
(45-49)
ALTERATION OR FALSIFICATION OF RECORDS IN FEDERAL INVESTIGATION
(50)
FALSE STATEMENT TO FEDERAL AGENT
(51)
FALSE STATEMENT TO FEDERAL AGENT
(53)
MAKING AND SUBSCRIBING TO A FALSE TAX RETURN
(60-64)
Outcome: 08/15/2019 83 MINUTES (Text Only) for proceedings before District Judge Morrison C. England, Jr.: CHANGE of PLEA HEARING as to John A. Crosby held on 8/15/2019. The plea agreement was submitted to the Court and filed. The defendant was sworn on his entry of plea and entered a guilty plea to Count 1 of the Indictment. The Court accepted the guilty plea, adjudged the defendant guilty, and set sentencing on January 30, 2020 at 10:00 a.m. in courtroom 7. The defendant was ordered to appear for sentencing. A pre-sentence report was ordered to aid in sentencing. Government Counsel: Matthew Yelovich, present. Defense Counsel: Elliot Peters, Retained, present. Custody Status: Present and out of custody. Court Reporter: Kimberly Bennett. (Deutsch, S) (Entered: 08/16/2019)
08/15/2019 84 MINUTES (Text Only) for proceedings before District Judge Morrison C. England, Jr.: CHANGE of PLEA HEARING as to Ines S. Crosby held on 8/15/2019. The plea agreement was submitted to the Court and filed. The defendant was sworn on her entry of plea and entered a guilty plea to Count 1 of the Indictment. The Court accepted the guilty plea, adjudged the defendant guilty, and set sentencing on January 30, 2020 at 10:00 a.m. in courtroom 7. The defendant was ordered to appear for sentencing. A pre-sentence report was ordered to aid in sentencing. Government Counsel: Matthew Yelovich, present. Defense Counsel: Benedict Hur, Retained, present. Custody Status: Present and out of custody. Court Reporter: Kimberly Bennett. (Deutsch, S) (Entered: 08/16/2019)
08/15/2019 85 MINUTES (Text Only) for proceedings before District Judge Morrison C. England, Jr.: CHANGE of PLEA HEARING as to Leslie A. Lohse held on 8/15/2019. The plea agreement was submitted to the Court and filed. The defendant was sworn on her entry of plea and entered a guilty plea to Count 1 of the Indictment. The Court accepted the guilty plea, adjudged the defendant guilty, and set sentencing on January 30, 2020 at 10:00 a.m. in courtroom 7. The defendant was ordered to appear for sentencing. A pre-sentence report was ordered to aid in sentencing. Government Counsel: Matthew Yelovich, present. Defense Counsel: Jerome Price, AFD, present. Custody Status: Present and out of custody. Court Reporter: Kimberly Bennett. (Deutsch, S) (Entered: 08/16/2019)
08/15/2019 86 MINUTE ORDER (Text Only) issued by the courtroom deputy for District Judge, Morrison C. England, Jr.: If any party wishes to file a sentencing memorandum or motion in advance of imposition of judgment and sentencing of JOHN CROSBY, INES CROSBY and LESLIE LOHSE, said memorandum or motion shall be filed on or before 5:00 p.m., seven (7) calendar days in advance of the date set for judgment and sentencing. Any response thereto shall be filed on or before 3:00 p.m., (3) calendar days in advance of the date set for judgment and sentencing. The parties are cautioned that if any sentencing memoranda are filed late, the judgment and sentencing date may be vacated, and the matter continued. The personal appearance of the assigned probation officer is required at the sentencing hearing. Counsel are directed to coordinate with the probation officer to ensure he or she is present at the hearing and/or available for any continued hearing dates. If the probation officer becomes unavailable, he or she must advise the Court via an email to the Courtroom Deputy that either another probation officer is prepared to attend the hearing on his or her behalf or that a continuance is being requested. (Deutsch, S) (Entered: 08/16/2019)
08/15/2019 87 SCHEDULE of DISCLOSURE for PSR as to John A. Crosby. Plea Date: *8/15/2019* Sentencing Date: *1/30/2019* Reply Date: *1/23/2020*** Correction Date: *1/16/2020* Report Date: *1/9/2020* Objection Date: *1/2/2020* Proposed Date: *12/19/2019* Copies: *AUSA - Defense Counsel - USPO* (Deutsch, S) (Entered: 08/16/2019)
08/15/2019 88 SCHEDULE of DISCLOSURE for PSR as to Ines S. Crosby. Plea Date: *8/15/2019* Sentencing Date: *1/30/2020* Reply Date: *1/23/2020*** Correction Date: *1/16/2020* Report Date: *1/9/2020* Objection Date: *1/2/2020* Proposed Date: *12/19/2019* Copies: *AUSA - Defense Counsel - USPO* (Deutsch, S) (Entered: 08/16/2019)
08/15/2019 89 SCHEDULE of DISCLOSURE for PSR as to Leslie A. Lohse. Plea Date: *8/15/2019* Sentencing Date: *1/30/2020* Reply Date: *1/23/2020*** Correction Date: *1/16/2020* Report Date: *1/9/2020* Objection Date: *1/2/2020* Proposed Date: *12/19/2019* Copies: *AUSA - Defense Counsel - USPO* (Deutsch, S) (Entered: 08/16/2019)
Plaintiff's Experts:
Defendant's Experts:
Comments: