IRS Says Kick-Back Scheme Defrauded Auburn Indian Tribe
SACRAMENTO, Calif. (AP) — The Internal Revenue Service is moving to seize 23 properties, including vacation homes in Lake Tahoe and Maui, as part of an investigation into fraudulent billing practices against a casino-operating Indian tribe in Northern California.
Complaints filed in federal court in Sacramento say a developer, the administrator of the United Auburn Indian Community and a tribal quality-control contractor conspired to bilk the tribe out of more than $18 million by inflating bills.
The bills were related to a construction project that included new headquarters for the tribe, which operates Thunder Valley casino in Lincoln. Prosecutors say the contractor would kick back part of his inflated payments to the tribal employees.
The IRS says it is targeting properties purchased with payments for the inflated bills.
The complaints were made public Wednesday.
Copyright 2012 The Associated Press.
