A sign to Indian Township, one of the reservations of the Passamaquoddy Tribe in Maine. Photo from Maine Encyclopedia
The Portland Press Herald continues its Unsettled series with Chapter 23 about the corruption indictment of Bobby Newell, a former leader of the Passamaquoddy Tribe at Indian Township:
The federal government dragged Newell out of his hole, indicting him on March 20, 2008, on 30 charges relating to the alleged diversion of $1.7 million in federal funds. Prosecutors alleged Newell had attempted to hide irregularities by firing employees who protested what was happening, including the five terminated after the 2005 protest against his governorship. Ironically, the firing and the lawsuit that followed – and ultimately was settled out of court – is what apparently first drew the attention of federal investigators. At trial, investigators showed how Newell had used his nearly unchecked power to dole out hundreds of thousands of dollars in “general assistance” payments to friends, family, political supporters and other tribal members. During the last two fiscal years he was governor, the general assistance budget – which Newell allegedly used to grease the wheels of politics on the reservation of 600 – was overspent by a total of $2 million. He paid out apparently arbitrary “honoraria” to himself, Lt. Gov. Joseph Socobasin and tribal councilors. He directed checks to be issued to himself, his son, and other family members for trips that investigators said had never occurred. “On other occasions, Newell dipped into Housing Authority funds for wedding donations, unspecified small loans, travel reimbursement for his son, Eric, and ‘general assistance’ for two other tribe members,” a federal court opinion would state. He spent Bureau of Indian Affairs housing funds “on his friends, family, tribal council members and their families, including William Nicholas, the tribe’s current governor.” To cover these costs, Newell ordered subordinates to “loan” the tribal government federal funds granted to support programs at the health, environment and police departments. In the fall of 2005, federal officials started asking where the missing money was but were rebuffed by the governor. By spring 2006 the situation was so dire that Newell was able to meet payroll only by raiding his employees’ 401(k) accounts and not paying federal and state withholding or rent payments (for employees living in federal housing). “When Newell left office in September (2006), after losing the election to William Nicholas, the tribe only had enough money to pay for one person’s salary – Newell’s,” an appeals court judge would write.Get the Story:
Chapter 23: Feds move in, Indian Township governor feels the heat (The Portland Press Herald 7/21) Over the Weekend:
Chapter 21: As reservation’s rule of law erodes, abuses thrive (The Portland Press Herald 7/19)
Chapter 22: The perils of placing trust ‘in the hands of the few’ (The Portland Press Herald 7/20) Related Stories:
Unsettled Ch. 20: Passamaquoddy Tribe still lacks constitution (7/18)
Unsettled Ch. 19: Passamaquoddy Tribe restricts right to vote (7/17)
Report faults Maine over dealings with Passamaquoddy Tribe (7/16)
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