Of the 18 member council, 14 were present. Nine council representatives voted in favor of the motion to stop the election: Sonia Little Hawk-Weston (Wakpamni District), Marilyn Charging Crow (Eagle Nest District), Collins “CJ” Clifford (Wounded Knee District), Floyd Brings Plenty (Oglala District), Ellen Fills The Pipe (Oglala District), Jackie Siers (Wakpamni District), Blaine Little Thunder (Eagle Nest District), David Pourier (Porcupine District) and James Cross (Pass Creek District).
Four council representatives voted against the motion to stop the election: Ella John Carlow (Pine Ride District), Chauncy Wilson (Medicine Root District), Donn Fire Thunder (LaCreek District), and Craig Dillion (LaCreek District). Patrick Ross (Porcupine District) voted to abstain.
“We, as legislators, spend a majority of our time dealing with social problems, most due to alcohol abuse. I have to be a voice for the children and the generations to come. Legalizing alcohol is not the answer. It’s like encouraging the use of alcohol to make money off our own people who are already fighting this disease,” stated Council Representative Jackie Siers [Natalie Hand, “Oglala Lakota Stop Vote on Alcohol,” Native Sun News, 2016.05.18].
The “primary objective is to get us a source of discretionary liquidity. Sick of begging,” Jason wrote of the bond scheme, in an e-mail quoted by prosecutors.
To carry out their plan, the group created a complex network of companies that secretly paid them hundreds of thousands of dollars to place the bonds with investors, according to the government. They then issued a total of $63 million in four installments.
In a Ponzi-style scheme, they recycled some of the proceeds from the first $27 million issue to buy the later ones, prosecutors said. They also sold millions of dollars of the tribal bonds to unsuspecting pension funds and endowments that were clients of two asset management firms controlled by Jason, according to the U.S.
“This is pure genius alla mikey Milken!!” Bevon Cooney, Jason’s “best friend of 23 years,” wrote in an e-mail contained in the government’s complaint. “The Native American Bonds!!!…Great work here Greek,” he added, using Jason’s nickname [Neil Weinberg and Patricia Hurtado, “Stock Swindler’s Catalog of Charges Grows on Sioux Bond Deal,” Bloomberg, 2016.05.12].
The Securities and Exchange Commission today charged six men, including a father and three sons, with defrauding investors in Gerova Financial Group Ltd., whose shares once traded on the New York Stock Exchange.
The SEC’s complaint, filed in U.S. District Court in Manhattan, charges John Galanis, his sons Jason Galanis, Derek Galanis, and Jared Galanis, along with Gerova president and chairman Gary T. Hirst and investment adviser Gavin Hamels. John Galanis has been a defendant in numerous SEC enforcement actions dating back to the early 1970s and his son Jason Galanis was charged by the SEC in 2007.
According to the SEC’s complaint, in early 2010, Jason Galanis and Hirst orchestrated a scheme to secretly issue $72 million of unrestricted Gerova shares to a Galanis family friend in Kosovo. Jason Galanis, his father, and his brothers allegedly directed sales of the shares from the Kosovo friend’s brokerage accounts and had the proceeds wired to them and their associates who collectively realized approximately $20 million in illicit profits [Securities and Exchange Commission, press release, 2015.09.24].