Opinion ID: 154056
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 3 The Cheyenne-Arapaho Tribes of Oklahoma (Tribes) is a combination of two native American tribes that function together as an Indian tribal organization. The Tribes' constitution mandates a governing business committee and several tribal officers, including treasurer and business manager. Viola Hatch served the Tribes as treasurer in 1988 and 1989. Although she was not officially treasurer in 1990 and 1991, the Tribes continued to use her signature as treasurer on its checks during that time. The tribal constitution provides that the treasurer is the custodian of all tribal monies and that any transactions on tribal accounts must be signed by the treasurer and one other officer or member of the business committee. Michael Combs worked as business manager for the Tribes from April 1989 to December 1990. The business manager's precise duties were the subject of some dispute at trial, however, it is undisputed that the business manager shared responsibility for authorizing travel and travel-related payments for persons on tribal business. 4 To govern travel policy and procedures, the Tribes have used the General Services Administration's Federal Travel Regulations (travel regulations) 1 since 1986. The Tribes have also used a Manual of Personnel Policies (manual) since 1989, which allows reimbursement for employees' travel expenses and other reasonable expenses in accordance with the travel regulations. During the period covered by the indictment, March 1990 through September 1991, the Tribes' formal policy required people traveling on tribal business to satisfy several requirements before they could receive tribal funds. Prior to any travel, a program director and the business manager (defendant Combs) were required to approve the trip. If an employee traveled out of state, the full business committee also had to authorize the travel by resolution. 5 Once travel was authorized, employees and business committee members were required to submit a check request form in order to receive tribal funds for their travel expenses. The check request form required the authorizing signatures of the business manager and the comptroller. Attached to the check request form, employees also had to submit a travel authorization form, which stated the location, time and reason for the travel. The travel authorization form required the signatures of the business committee chairman and the business manager (defendant Combs). Once approved, the travel checks were issued by the finance department, and bore the signatures of the chairman and the treasurer (defendant Hatch). 6 Audits by the Office of Inspector General and an independent firm revealed irregularities in the Tribes' application of the travel regulations. In practice, the administrative assistant to the business manager and the executive secretary to the business committee completed most travel expense documents at the request of the person traveling. They had no training in how to apply the travel regulations and did not possess a copy of the full regulations, so errors often occurred. For example, the travel regulations mandated different per diem rates depending on the duration of travel. Contrary to the regulations, the Tribes' practice was to use the maximum per diem rate for all travel and to give a full four quarters of per diem for each day regardless of when the travel actually began and ended. More important, while the appropriate officials regularly approved travel authorization and check request forms, the Tribes processed hundreds of travel forms for many employees with no internal system to cross reference the expense requests. This lack of procedural safeguards made it possible for employees to receive more than one travel advance or reimbursement for travel on the same day. 7 Following the audits that revealed the travel problems, several tribal leaders were investigated. In 1995, Combs, Hatch and two others were charged in a thirty-two count indictment, alleging numerous acts of embezzlement, conversion and conspiracy to embezzle and convert tribal funds. Pursuant to Fed.R.Crim.P. 29, the district court granted Mr. Combs' motion for acquittal on the conspiracy count, one of the conversion counts, and all embezzlement charges. However, the district court denied Mr. Combs' motion for acquittal on the remaining five conversion counts, and the jury convicted. The district court also granted Ms. Hatch's motion for acquittal on the conspiracy count, the embezzlement charges, and one of the conversion counts, but the court denied her motion for acquittal on the remaining six conversion counts. The jury acquitted Ms. Hatch on two counts and convicted her on four counts of conversion.