Contempt case stems from American Indian trust fund scandal
by Christine Dorsey Donrey
Washington Bureau
Las Vegas Review-Journal
WASHINGTON — A federal judge on Wednesday ordered Interior Secretary Gale
Norton and Bureau of Indian Affairs Director Neal McCaleb to stand trial on
contempt allegations stemming from a class action lawsuit on behalf of
500,000 American Indians.
Norton and McCaleb are defendants in a 5-year-old lawsuit about the federal
government’s mishandling of billions of dollars in Indian trust fund
accounts dating back to 1887.
A hearing was scheduled for Friday to discuss possible witnesses in the
contempt trial, which is set to begin Monday. Norton and McCaleb are not
required to be present during proceedings. Efforts to reach Norton and
McCaleb for comment after the order was made public late Wednesday were unsuccessful.
Eloise Cobell, a member of the Blackfeet tribe of Montana who is the lead
plaintiff in the class action case, filed a motion in August asking U.S.
District Judge Royce Lamberth to find Norton and McCaleb in contempt for
failing to initiate a court-ordered historical accounting of the missing
funds, and for concealing information from the court about their actions.
Nevada tribes with land holdings and trust assets held by the government are
watching the Cobell case closely, as the final outcome could end in a
financial settlement.
In an order Wednesday, Lamberth said Norton must prove in court why she
should not be held in contempt, since she failed to meet deadlines for
challenging a court monitor’s reports that the Interior Department has not
made progress fixing the troubled trust accounting system.
Norton also must prove that she did not commit “a fraud on the court” by
filing false or misleading reports about the status of the accounting and
the department’s system of tracking the Indian royalties.
Steve Tullberg, an attorney with the Indian Law Resource Center, said a
contempt of court finding would be a serious blemish on an attorney’s
record, and could lead to a penalty by the American Bar Association.
Interior spokesman Eric Ruff said strides have been taken to improve the
management of the trust fund and comply with court orders since Norton took
office.
The Associated Press contributed to this report.
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