The Times’ Article on Wells Fargo Targeting Per Capita Payments

Link: ‘Lions Hunting Zebras’: Ex-Wells Fargo Bankers Describe Abuses by Stacy Cowley

Excerpt:

In the Phoenix area, managers gleefully looked forward to the days when the Salt River Pima-Maricopa Indian Community made its quarterly per capita distribution payments, said Mr. Hansen, the former branch manager in Scottsdale.

Members of the Native American community would head straight to the bank with their checks, and employees would encourage them to use the money to open new accounts. Sometimes it was on the up and up: Mr. Hansen said that he looked forward to being able to open several dozen new accounts in one day but that he always tried to match customers with products that fit their needs.

Others did not. Mr. Hansen learned that one enterprising branch manager had invented “per capita day packages,” jammed with five or more bank accounts. Customers would be told that they needed separate accounts for such purposes as traveling, grocery shopping and saving for an emergency.

“They would deposit their money and get hit with fees like crazy, because they got confused about what account they were using,” Mr. Hansen said. “They would use the wrong debit card and overdraw their travel account, and then when they came back three months later, they would lose hundreds of dollars from their next check paying off those fees.”

District Court Holds Miccosukee Member Liable for $278K in Taxes

Download materials in the matter of U.S. v. Jim et al, 14-cv-22441 (D. Fla. 8/24/16):

Doc. 185 – United States’ Proposed Findings of Fact and Conclusions of Law

Doc. 186 – Defendant Sally Jim and Intervenor-Defendant Miccosukee Tribe of Indians’ Proposed Findings of Fact and Conclusions of Law

Doc. 188 – Order Setting Forth Court’s Findings of Fact and Conclusions of Law

Link to previous posts about government’s tax dispute with Miccosukee Tribe here.

Gaming Per Cap Bankruptcy Proceeding

The case is In Re DeCora. It involves a Ho-Chunk member declaring bankruptcy and whether the Ho-Chunk Nation Bank’s interest in the member’s per cap proceeds were secured. The opinion is a little entertaining, beginning with a reference to Frank Zappa:

Musician and satirist Frank Zappa once quipped that “Communism doesn’t work because people like to own stuff.” Whether this is an accurate take on geopolitical realities or not, the concept of personal property rights is certainly deeply ingrained into American culture and jurisprudence. In America, people may own all the stuff they can afford, and they can sell or give their stuff to someone else. Even when life doesn’t take Visa (or some other unsecured form of credit), people find ways to use their stuff as collateral for loans so that they can run out and buy more stuff. The present case involves competing interests in an intangible bit of stuff that this Court has encountered before-namely, a debtor’s right to receive tribal per capita distributions from tribal gaming revenues. The debtor used his right to future distributions as collateral for a loan so that he could afford, among other things, a new car. The question is whether the creditor took sufficient steps to protect its security interest from challenge.

Slip op. at 1-2.

The court also cites to numerous Ho-Chunk tribal court opinions. For example:

Third, the tribal courts of the Ho-Chunk Nation have themselves indicated that tribal members have a right to per capita distributions, if and when they are made, as long as that member is on the rolls of the Ho-Chunk Nation. See Kedrowski, 284 B.R. at 448-49; Hendrickson v. HCN Enrollment, CV 99-10 (Ho-Chunk Nation Trial Court 1999).

Slip op. at 3.

Here are the materials:

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US v. Littlejohn — Garnishment of Tribal Per Cap

This is how the United States goes after the tribal per capita payments of convicted criminals. The Eastern Band of Cherokee Indians argued they were immune from the order of garnishment, but there is no sovereign immunity from suit by the United States.

Notice of Garnishment

Convict’s Response to Notice of Garnishment

Tribal Response to Notice of Garnishment

United States Response

District Court Garnishment Order and Opinion