3-02-2022 6:58pm

3 Former Tribal Officials Convicted Of Embezzlement

Anita Johnson-Brown Editor

CALIFORNIA-John Crosby, 56, his mother Ines Crosby, 76, and her sister, Leslie Lohse, 67, officials of Rolling Hills Casino, have each been sentenced to over three years in prison, for embezzling almost $5 million from the tribe to fund lavish lifestyles, according to federal prosecutors.

The prosecutor's reports indicated that defendants misappropriated the funds for over five years, from the Paskenta Tribe of Nomlaki Indians.

John Crosby a former FBI agent in the state of Sacramento, was employed as the tribe’s Economic Development Director. Ines Crosby was the tribe’s Administrator, and Leslie Lohse was the Treasurer.

All three defendants pleaded guilty to conspiracy to embezzle money from a tribal organization. John Crosby and Lohse also pleaded guilty to filing a false tax return and Ines Crosby pleaded guilty for failing to file a tax return, In 2019.

Prosecutors said the defendants stole over $4.9 million of the tribe’s money and purchased homes, cars, and other extravagances, including a $243,000 swimming pool and spa at John Crosby’s home, Ines Crosby purchased an $84,000 koi pond and spent $150,000 to purchase precious gems and gold coins.

Additional funds were used for travel purposes, expensive vacations, jewelry, and more.

U.S. District Judge John A. Mendez sentenced John Crosby, of Redding, to four years and nine months in prison and a $10,000 fine; Ines Crosby, of Orland, was sentenced to four years and nine months years in prison, and Lohse, of Glenn, received a sentence to three years and five months in prison.

Further hearings for John Crosby and Ines Crosby, are set for April 19, 2022, Lohse paid $902,208 in restitution before the hearing on Friday.