February 16, 2011

http://post-journal.com/page/content.detail/id/579767/Former-Seneca-Councilor-Indicted-For-Bribery--Theft--Money-Laundering.html?nav=5004

A 13-count indictment has been handed up against former Seneca Nation of Indians Tribal Councilor Bergal L. Mitchell III, 37, Gowanda.

U.S. Attorney William J. Hochul Jr. said a federal grand jury in Buffalo returned the indictment, which charges Mitchell with one count each of bribery, theft by an officer or employee of a gaming establishment on Indian land, wire fraud, conspiracy and eight counts of money laundering.

The theft and wire fraud charges each carry a maximum penalty of 20 years in prison, a $1,000,000 fine or both. The bribery and money laundering charges each carry a maximum penalty of 10 years in prison, and the conspiracy charge carries a maximum sentence of five years in prison.

The indictment charges Mitchell, former vice chairman of the Seneca Gaming Corporation board of directors and former nation tribal councilor, unlawfully siphoned $338,000 of $2.1 million the nation and its subsidiaries paid for 251 acres of farmland in Lewiston that now serves as the Seneca Hickory Stick Golf Course. The indictment alleges Mitchell, together with former Lewiston attorney Timothy J. Toohey, allegedly developed a scheme to get a portion of the proceeds of money paid by the nation and its subsidiaries for the golf course. It alleges he promoted the land acquisition to the nation and played a key role in negotiating the sales contract, alleging he did not disclose to the nation's governing bodies that he and Toohey allegedly inflated the cost of the land in order to get a portion of the money paid for its purchase.

The U.S. attorney's office reports Toohey pleaded guilty to unlawfully receiving an additional $202,000 of the proceeds and is awaiting sentencing.

"Today's indictment reaffirms the commitment of my office and the Department of Justice to renewing our nation's enduring promise to American Indians to respect their sovereignty and the legitimacy of their tribal governments," reports Hochul.

Seneca President Robert Odawi Porter said the nation fully cooperated with the federal investigation and expressed gratitude for bringing the investigation nearer to a close.

"The Seneca people have long awaited the findings announced today and are gratified that the search for justice is one step closer to conclusion," he said.

"We must also recognize the inherent travesty that has been committed by one of our own against the Seneca Nation," said Porter. "Theft from the gaming corporation is theft from the nation. It is never acceptable. A theft of this magnitude perpetrated by a Seneca Nation member is especially tragic and painful," he said.