Indian ex-governor on trial

Indian ex-governor on trial


Passamaquoddy successor testifies about misuse of funds
By Judy Harrison
BDN Staff
BANGOR DAILY NEWS PHOTO BY GABOR DEGRE
Robert Newell leaves U.S. District Court in Bangor on Monday. Buy Photo

BANGOR, Maine — The governor of the Indian Township Passamaquoddy Tribe testified against his predecessor in U.S. District Court on Monday as the jury trial of Robert L. Newell and the tribe’s ex-business manager began.

Gov. William Nicholas said that Newell’s spending had put the tribe more than $1.6 million over budget in May 2004, eight months into the tribe’s fiscal year. The head of the current tribal government said Newell kept the tribal council in the dark about how he had moved money from one account to another and about the extent of the tribe’s financial situation.

The governor of Indian Township was the first of 70 potential prosecution witnesses to testify against Newell, 64, of Princeton and James J. Parisi Jr. 45, of Portland, the tribe's former business manager. The two are charged with misusing more than $1.7 million in federal and tribal funds between Oct. 1, 2002, and Sept. 30, 2006 — Newell’s term as governor — and lying about it to investigators.

The jury trial, overseen by U.S. District Judge George Singal, is scheduled to last about three weeks. It is expected to include a lot of documents, both sides in their opening statements told the jury of four men and a dozen women, including four alternate jurors.

“This case is all about following the money,” Assistant U.S. Attorney James Chapman said. “The tribe received federal funds that all had certain conditions about how they had to be used. Governor Newell and Mr. Parisi violated the law when they didn’t comply with those contracts, and then they made false statements” to investigators.

Newell's court-appointed attorney, Matthew Erickson of Brewer, told the jury that it was not enough that the prosecution show that his client moved money from one account to another. It also has to prove that it was Newell’s intent to commit a crime, he said.

“It's not about whether he was robbing Peter to pay Paul,” Erickson said. “When you hear from my client, it will become clear that he is no Donald Trump or Lee Iacocca or Mitt Romney. ... It's not clear how Bobby Newell benefited from all this.”

George “Toby” Dilworth, Parisi’s Portland defense attorney, told the jury that his client met Newell through Parisi’s neighbor Craig Francis, who was the tribe’s attorney. Dilworth said Parisi’s background was in banking and that he had no experience in accounting or auditing or overseeing programs funded by the federal government, as is much of the tribe’s operation.

“Jim Parisi was always a little bit of an outsider,” Dilworth said. “He was not a member of the tribe and not related to members of the tribe. You will hear about some strong alliances and bitter feuds at Indian Township. Jim Parisi was caught in the crossfire. He was not Bobby Newell’s Siamese twin. Their roles and conduct were different.”

Nicholas, who served as chief warden and as a member of the tribal council during Newell’s tenure as governor, testified Monday that most of the over-spending appeared to have been in the general assistance account, which is nearly identical to general assistance programs run by municipalities.

Cash can be issued from the fund to meet emergency needs for food, fuel, clothing and housing. Information about how tribal members qualified for general assistance was not presented Monday.

“Traditionally,” Erickson said in his opening statement, “the chief is the person members of the tribe go to if they are hungry and have no food. That hasn’t changed.”

Cross-examination of Nicholas is scheduled to resume today. Ben Picotte of the Bureau of Indian Affairs also is scheduled to take the stand.

jharrison@bangordailynews.net

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Comments
34 comments on this item

Of course, Picotte will defend the Tribal Governor. At least someone was paying attention to the books. Mr. Newell certainly must have known about the movement of monies and jiggling the records as he did, which was illegal, and attempted to do this all with US Federal Funds. How stupid. If Newell did not know what he was doing, (which is a faulty alibi in itself) and he was not an "accountant", but in "banking", according to the report, ignorance is not going to exonerate Newell from the law. Even bankers themselves have common knowledge of accounting and the principals of money management. Too much is going on here, and I would suggest that a Federal overseer take over this Tribe's books and financing income and outlays in the future, after Newell spends a year or two in jail for federal fund embezzelment.

Yep - and Mainers denied the Passamaquoddys a casino because we're all racists...uh huh.

Yes MaryAnn - we ARE all racists. We are so racist we denied the white people of Washington County a casinio because the Passamaquoddies would also benefit. Not only does that make us racist, it makes us classist, too because most of the folks in Washington County are poor, marginalized people that the rest of Maine tries not to think about. peace and love.

The people in Washington County are in debt, and the last thing we needed was people on welfare going to the casino, gambling all their money away, and then crying oh poor me, and then getting their welfare increased! I'm all for having my taxes go to those that need it, but I am NOT okay with it going towards people that do not work, and gamble, including gambling senior citizens. They can do better things such as HEAT, FOOD, and necessary things rather than gamble it ALL away. I am not okay with it being abused either such as Mr. Newell has done. It's wrong, and even if Mr. Parissi has no background in accounting, he obviously has SOME, and he's still guilty for taking the job, and for not saying anything about the ignorance and illegal acctions of Mr. Newell, and what he has done to his tribe. Both should be punished.

anne_of_mdi, Thanks for warning us all about Phiilipine. This man has to be the most overbearing human on the planet! He must have permanent arm damage from patting himself on the back. If he actually does have all he claims to own, does he really think that anyone cares? If he is so damn fond of this area, why is he in the Phillipines? I think someone drove him as far away as they could leagally do! So why is he still sending all his drival to this paper? Or are we all being punished for some reason?

Don't express your frustration with johninphillipines publicly, cause that's what gets him off. Don't give him the power. If we all just ignore him, he will find another way to get off.

I recently watched a news interstitial about the psychology of indecisive voters. The doctor explained that our parietal lobe assists

with gathering evidence in order to make a fair conclusion..

It is just as important to filter through statistics which school on a biased history and generalized

falsehoods...

Please allow me to present you with the following advice:

Encourage leaders who act with selfless motivation,

Allow those who have broken law while granting with the good of their heart a chance at redemption.

(....and BANISH those who act to suppress a world of free thinking minds)

I don't think Mr. Newell was selfless......oh contraire! He was selfish. But, I do agree with your philospophy, however maidmolliann

The fact that the casino even came into this discussion is proof of the racism in Maine. You are saying that because Bobby Newell is a crook all Indians are? Too bad you didn't see the racism in your comment before you posted it. You are probably one of those people who say you won't vote for Obama because he is socialist rather then just flat out say it is because he is black. WHATEV already. As for the people of Washington County spending all their money at a casino.....they would have had to make it to Southern Maine first.

It seems like alot of these tribes have issues with poor money management . These tribes are so dependent on the tons of federal money coming in from the bureau of indian affairs.. Maybe it is time they disband the BIA ...

i think that if you want to post a comment on Governor Newell's case then you must know all the details of the case. the only thing governor newell is guilty of is having a big heart and last i knew thats not illegal. he did no wrong nor did jim parisi. the money paid bills as it was suppose to, and was disbursed throughout the people when asked for, as well as council. council approved the monies to be handed out as they also accepted the money, now governor newell is being charged for doing something wrong that he didnt even do, i know he is innocent and i hope everyone will be proved wrong. he has nothing coming nor does he deserve any more than an apology and a thank you for helping his own people, this was all asked of everyone. had u not asked for money it wouldnt of been spent but it was a quick fix now your all testifying against him, why so that you can get the federal government in control to run our finances or our government as a whole. thats not what we asked for but thats what happening. if we had a problem then it should have been handled within our own jurisdiction not outside in the federal government, how is that doing whats right. to governor newell you have my support and the support of many others so you go and show them you did no wrong while we stand behind you and we'll be waiting for you to win the next election!!!!

Of course I admit my racism, I am a privileged, white, straight man, although disabled, I admit my power status in this country. That is not to say that racism is right (or any of the isms) but it is to say that I have an obligation to work to eliminate racism and the first step is to inform my fellow whites that we are racist. I agree, fukitol (love the name, btw) that we should not judge an entire community or race because of the actions of a few, but sadly, that's exactly what many of us whites do, only because we benefit from racism, we benefit from keeping people marginalized. I only wish I could have more impact on my fellow whites in educating them about their racism. AND why the casino was brought in to this discussion is another example of racism. There is a BIG difference between MaryAnn and I - she doesn't even know she's racist, I do and I'm trying to make it right. peace and love.

I would like to know what all the hoop-la about JIP is. Who cares what he is posting under or what he says for that matter. Get a life.

The funds didn`t go where they were suppode to. simple where and was it legally spent. If so fine if it was misappropriated illegally restitution is in order back to the U. S. goverment. And it`s is time to for an independent (outside the tribe )annual audit. by the way nice addition on his house and truck all about that time????

should proof read my own posts after that spelling and grammar

As far as the casino. The people in the south didn`t vote for it and didn`t carry in washington county?

take it out on them and not your neighbors

It is amazing how SOME community members are in such denial about Mr. Newell and Mr. Parasite I mean Parasi abusing our funds and yes I am sure that those who continuously received money for their drugs, for not being able to get out of bed in the morning to support their families, for staying home and collecting a paycheck week after week and for doing absolutely nothing, hey I can see why you would support him and think nothing of him breaking the law. As far as I am concerned these people who took and took (his so-called supporters) you should be sitting right next to him in a jail cell. As far as the comment that the tribe should handle their own problems, well hello that's a little hard to do when the legal system is intimidated by the Governor! In the real world you break the law you pay the fiddler! It's time the other community members that went without during Mr. Newell's administration live the good life, only we will do it legally and actually work for our money!

I grew up with Jim Parisi, went to school with him, knew his family well. He doesn't have it in him to willfully do anything wrong..(perhaps make a mistake which is a human trait). He is a very good person and I can't imagine that he would have changed in any significant way from being a pleasant, kind, deeply caring guy....

p.s. people on welfare in general don't go to a casino. This is a myth. There still is racism in Maine. This is not myth.

Bobby Newell has depreved his people for years. And they have the nerve to say that they dont know what was done with the money. His wife running around in a mink in the dead of summer would be a hint. All the trips and cars.. go figure. He is not the only one that should be put on trial. Wake up people!!!

Im not one to usually feed into this BS, but lots of stories could be told on here and you would never get to the bottom of it all. Maybe some of you should take all the time you have and go listen to this case, you would find it VERY interesting to see who has jobs now at Indian Township....Who signs checks (then and now) and who gets what for assistance. You will also here the other side of the story......whos been on the stand?!....whos been lieing?! ect.....You mention cars and additions to homes........funny how native americans can get loans for these types of things and get blamed for buying them through Tribal Govt. With Robert Newell as governor....the people there SURVIVED....NOW the people there SUFFER!! This will be very interesting how this all comes out, so amybe you should go to the trial and see for yourself that everyone of these witnesses( Against Robert Newell and Jim Perisi) are guilty of MANY things!! 2 weeks left and then maybe BANGOR DAILY can tell the WHOLE story!!!!!!!

On 11/4/08 at 08:32 PM, maineopine wrote:

p.s. people on welfare in general don't go to a casino. This is a myth. There still is racism in Maine. This is not myth.

Oh you better take a trip down to Hollywood Slots come the first of the month. That's when all the low lifes that just got their check are there gambling away all of our tax dollars.

Those dern indians, always fighting each other. Ten Commandments says, thou shalt Not Steal!!!

Man you are one that has been brainwashed by the new system! Go to the trial.........you would of heard that the health center was 1.6 million in debt in 2001......a year before Newell got into office.........Tribal Govt. was 1 million in debt! But no, your one to run your mouth and dont know the FACTS! You would learn alot from this trial....I did.....go....I'd love to see your face when all these jealous people(tribal govt. current employees that are getting threatened by the current governor on what to say) are getting cross examined...............cause they are lieing on the stand and having to bring up lots of interesting details..........like whos leading dept.s now......whos signing those checks.........buying new coats for WHS girls last year...bonus checks to family members last x mas out of "bear account" money.........paying for hotel rooms and renting an appartment while a family member is in Boston............did ya know all this.......well me neither until it was all said in that court room this week and man theres 2 weeks to go and more to come out...........

put him in jail with big bubba!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Probably need a bailout. Must be sad to realize thay cannot make it in this greatest country on earth. why did we do this to them is what l would like to know?

The recent vote against a casino in Oxford county disproves the claim that the defeat of a gambling proposal for Washington county was based on a boldly racist outpouring. Playing the race card was a petty and bitter response and disingenuous to the cause of those who seek gambling in Maine.

I have voted against every gambling proposal presented weather it be in Bangor or Scarborough or Washington county or Oxford county. By the same logic I have discriminated against those in southern, central and western Maine as well. That argument is preposterous.

Where those who voted against widening the Maine Turnpike racist? How about those who voted to shut down Maine Yankee?

Those of us who are opposed to gambling are just that--opposed to gambling. Calling us names is just wrong.

Well, iminmiane, sadly, you are in the minority, you have conviction that transcends racial lines. You should be able to sleep well, you are righteous.

Hell with the two weeks...GUILTY! I agree, if you want to know the facts of this case...spend a day and have a seat...It's FREE, no admission charge! You'll hear first hand how ugly things went under a madman as the Governor...I'll save you the suspense...Can you say Saddam?! His own people became his prisoners...except for the sleazy women and druggies! The Passamaquoddy Nation needs time to heal from all this and, hopefully, can reach the plateau of happiness and success!

iminmaine if you want to use the recent vote against the casino as proof against racism you might want to explain to us all then why the the tribal casino was voted out two to one when this one was 54% to 46%? Then you can explain why Bangor had slots and then an expansion when the legislature voted to ok slots on Indian land but the Governor single handedly vetoed it, and don't give us some line about poverty stricken areas blowing all the money they don't have on gambling and getting addicted. It's getting quite old.

Well, underneath, I suggest you come out from whatever your "underneath" , remove the rose colored glasses and have a professional check the prescription. If you going to make comments about what is going on inside the court room, make sure that you tell the whole story. Indian Township did survive the wrath of Mr. Newell, but it will take years to recoup from all of this. You should make sure you understand completely before making such blatant comments. This trial is hard on everyone one.

Nice rant dude, too bad you didn't check your facts before trying to perpetuate the myth you and others so badly want to believe in. The facts are these my friend. The Oxford casino was defeated by a vote of 53.8% to 46.2%. The Washington county proposal lost by a vote of 52.3% opposed to 47.7% in favor. You can go here to see the truth for yourself: http://maine.gov/sos/cec/elec/2007/ref-nov-county.html

THE PERCENTAGE OF THOSE VOTING IN FAVOR OF THE TRIBES WASHINGTON CASINO WAS EVEN LARGER THAN THOSE IN FAVOR OF THE OXFORD CASINO! NOT THE 2 to 1 MARGIN AGAINST YOU FALSELY CLAIM.

Governor Baldacci announced his opposition to casino/racino gambling in his inaugural speech upon taking office in January of 2003. He has continued to opposed all such proposals including the one in Bangor approved by voters in November of 2003.

The bottom line remains the same: Those of us who are opposed to gambling are just that--opposed to gambling!

You know I am reading these scathing comments about Mr. Newell and I wonder, do any of you know this man?

Or are you arbitrailly condemning him on psuedo outrage?

Few of you , if any, have the least idea of the poverty on that reservation.

If someone came to me, who has children, or is elderly or disabled, and pleaded for money for food, heat, medicine...I would find it very difficult if not impossible to not help them.

The money was the tribes for their welfare and wellbeing. So Mr. Newell fuzzed the lines...too bad he did not have a degree in business administration but he does not.

He was elected because he was a good man, well respected and well thought of.

What about giving him the benefit of the doubt here?

I do not know the particulars anymore than any of you do.

But, let him who is without sin cast the first stone, or call the first name..how many of you have not stolen something at some time in your life?

The tribe looks to the chief, or the leader to help them in times of need. Perhaps in Mr. Newell/s mind that was more important to him than which name was on the account he used to supply those needs.

I dont know.

The thing that bothers me here is that I believe the constitution has been violated in his trial.

We, as Americans, are entitled to a trial with a JURY OF OUR PEERS.

He did not have that.

He had a jury of white people and eleven of them were women.

These are not his peers.

Furthermore,if a person has not lived on that reservation, or at least had several long visits there, they have no idea of the difference in culture between white Maine and Indian Maine.

It seems to me that there should have been twelve Indians on that jury.

It was, after all, their monies that were allegedly misused.

Shame on all of you .

You have no idea what life is like up there.

And yes, I do. My granddaughters are Passamaquoddy .

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