Indictments unsealed against insurance broker and Pechanga ex-financial exec who is accused of taking bribes
Thursday, February 4th, 2010. Issue 05, Volume 14. My Valley News
TEMECULA - Indictments were unsealed today against an insurance broker who allegedly overcharged the Pechanga Band of Luiseno Indians by $4 million for premiums and an ex-financial executive for the tribe, who is accused of taking bribes to look the other way.
James William Riley and Ryan Jay Robinson, the former chief financial officer of the Pechanga Resort & Casino and the Tribal Government Center, are both charged with grand theft.
Riley, 46, also faces commercial bribery and money laundering charges, and Robinson, 39, is charged with commercial bribery.
The men allegedly committed the crimes in 2006 and 2007, according to Ryan Hightower of the Riverside County District Attorney's Office.
The tribe initiated the investigation that resulted in the indictments, according to Mark Macarro, Pechanga tribal chairman.
"We uncovered evidence of fraud and theft against the Pechanga Tribe and immediately launched a detailed internal investigation,'' Macarro said in a written statement.
The indictment alleges that after Hurricane Katrina, Riley overcharged the Pechanga Development Center by more than $4 million for insurance premiums.
Robinson allegedly accepted more than $100,000 in kickbacks from Riley in exchange for overlooking the theft.
Robinson's money was allegedly laundered through multiple accounts before being withdrawn in the form of cashier's checks.
"People may assume that as large amounts of money change hands illegally, the corporations involved and law enforcement might not notice.
They're wrong,'' said Riverside County District Attorney Rod Pacheco. Macarro said the alleged crimes are upsetting to the tribe.
"At best, these individuals violated the tribe's trust and broke their fiduciary duty to our people,'' Macarro wrote. "At worst, they committed crimes against our tribe.''