Wampum

The plaintiffs (Indians) pulled out their big guns yesterday Tuesday, and the testimony was stunning. Indianz.com (the only media resource I know of which is truly covering this landmark trial), has the story. First up was DoI field solicitor Robert McCarthy:

An Interior Department attorney who has been locked out of his office at the Bureau of Indian Affairs accused the agency on Tuesday of failing to account for millions of dollars in trust funds.

After a stint in Oklahoma, field solicitor Robert McCarthy went to work for the BIA in Palm Springs, California, over three years ago. He said he quickly learned that the agency didn't have a way to track more than $30 million in annual lease payments owed to members of the Agua Caliente Band of Cahuilla Indians.

"The agency had a very poor system of record-keeping and was grossly mismanaging the leases ... and was generally not enforcing the leases," testified McCarthy, one of the witnesses for the plaintiffs in the Cobell trust fund lawsuit.

Enforcement was so lax that it was impossible to tell whether Agua Caliente landowners received the right amount of money for the use of their land and whether they received it on time, McCarthy said. The BIA essentially relied on the word of developers, private parties and outsiders.

"I saw files that were years in default," McCarthy said of leases that weren't enforced.

Even when a payment was made, the BIA didn't always pass it on to the beneficiary, McCarthy testified. In one case, the BIA kept a trust payment of $130,000 in a "special deposit account" for over 25 years because the agency didn't know whose money it was.

...

Despite the apparent mismanagement, the BIA made money off of Agua Caliente landowners. "In virtually every case for virtually every type of administrative action," the agency charged a fee for its services, McCarthy said.

For example, a fee of 1 percent was applied to every single land sale, McCarthy said. In Palm Springs -- where real estate is big business -- this amounted to payments to the BIA that were as high as $60,000, according to one document entered into evidence.

But federal regulations limit fees for land sales to $22.50, McCarthy said. The regulations also cap fees for leases at $500, though that apparently wasn't followed in Palm Springs.

"Those fees are charged in Palm Springs on every lease," McCarthy told the court.

...

The situation prompted McCarthy to warn his superiors in the Solicitor's Office, the Inspector General and eventually Jim Cason -- the associate deputy secretary at DOI who was in charge of the BIA at the time -- about the problems in Palm Springs. "I was kicked out of my office after I made my disclosures," McCarthy told Judge James Robertson, who wondered why the solicitor was working from home -- with pay -- rather than at the BIA office.

"Everyone stopped talking to me," McCarthy added. "I was shunned."

And when McCarthy informed his superiors that he was going to testify in the Cobell trial, he was told he was going to be fired for allegedly disclosing confidential trust data to the media. The Public Employees for Environmental Responsibility group is defending McCarthy, who has filed appeals over his employment status.

...

After his direct testimony, McCarthy was treated in a hostile manner by Robert Kirschman, a DOJ attorney. Kirschman attempted to show that McCarthy tried to take sole credit for identifying the proper owner of the $130,000 trust payment, mischaracterized the way in which Agua Caliente leases are tracked and gave inaccurate information in the memo to Cason.

McCarthy appeared to withstand the scrutiny and Kirschman cut off his cross-examination after seeming to stumble on a question about fees. Kirschman also tried to make an issue out of a memo that he said McCarthy failed to provide to the court.

Next up for the Cobell plaintiffs was Albuquerque Bureau of Indian Affairs employee Mona Infield, whose responsibilities cover data recovery efforts:

Infield, a member of the Citizen Potawataomi Nation of Oklahoma, gave succinct but detailed testimony about trust accounting practices dating back to the 1980s. She spoke of outdated systems, missing computer records and a lack of enforcement.

"They were relying on an honor system to pay the royalties," she said of government agencies.

Infield concluded her testimony yesterday afternoon after DOJ attorneys declined to ask questions.

Up today is Kevin Gambrell, the former director of the Federal Indian Minerals Office in Farmington, New Mexico from 1996 to 2003. Gambrell testified before Congress regarding mismanagement of trust accounts, and was fired from his job for purportedly "destroying records." Gambrell maintains the documents were merely copies of originals properly recorded and stored by MMS.

PBS' Now recorded an interview with Gambrell in 2006. For a preview of what Gambrell might have to say today, read the transcript.

Correction: Gannett has also been following the story. In fact, Solicitor McCarthy faces dismissal for disclosing the extent of the mismanagement to Gannett earlier this year.

Update: I misread the original article in Indianz, and thus was a day off in my reporting. McCarthy and Infield testified on Tuesday, and Gambrell yesterday. I'm currently reading through the transcript.

In addition, Indianz.com is reporting both parties have rested their cases and have until Dec. 30th for closing arguments.