An attorney for the Twenty-Nine Palms Band of Mission Indians is among four people who have been indicted on federal bribery and money laundering charges for allegedly participating in scheme in which associates of the lawyer hired to provide assistance to the tribe paid kickbacks to the attorney.
The 48-count grand jury indictment returned yesterday afternoon names:
- Gary Edward Kovall, 66, of Ely, Minnesota, a licensed California attorney who acted as legal counsel for the tribe;
- David Alan Heslop, 74, of Templeton, who, on Kovall’s recommendation, was hired by the tribe to oversee some tribal business;
- Paul Phillip Bardos, 57, of Rancho Cucamonga, a general contractor; and
- Peggy Anne Shambaugh, 56, of Ely, Minnesota, who is Kovall’s wife.
All four defendants have agreed to appear for arraignments tomorrow in United States District Court in Los Angeles.
According to the indictment, Kovall advised the tribe to create a limited liability company to purchase real estate, and the attorney convinced the tribe to hire Heslop as the company’s manager. Kovall and Heslop then recommended that the tribe hire Bardos to act as the tribe’s “owner’s representative” in several construction projects at the Spotlight 29 Casino. When additional construction or construction oversight became necessary in relation to casino projects, Bardos submitted proposals to perform the work, and Kovall persuaded the tribe to give Bardos the contracts. After being paid by the tribe, Bardos paid kickbacks to Heslop who, in turn, paid kickbacks to Kovall though Shambaugh.
The indictment alleges that in 2007 Bardos paid Heslop more than $186,577, most of which was then funneled to Shambaugh.
“The United States Attorney’s Office is committed to the prosecution of corruption and fraud in all of their guises,” said United States Attorney André Birotte, Jr. ‘This case demonstrates that our commitment extends to vigorously pursuing cases against unscrupulous individuals who abuse their positions to take advantage of Native American tribes.”
Detailed news link: here