Man rejects responsibility for lost funds

[debbieredbear]

Man rejects responsibility for lost funds related to American Indian orphanage appeal.


PATRICK M. O'CONNELL
Tribune Staff Writer
 
http://www.southbendtribune.com/apps/pbcs.dll/article?AID=/20060420/News01/604200332/-1/NEWS01/CAT=News01


SOUTH BEND -- In a series of composed but defiant answers from the witness stand, Rodger D. Griggs testified on Wednesday that he was not responsible for the money that investors lost in a program aimed at helping American Indian orphans.

Griggs, who faces a sweeping federal indictment on conspiracy, tax evasion, wire fraud and money laundering charges, testified in his own defense in U.S. District Court in South Bend a day after the government rested its case.

"They didn't loan the money to me," said Griggs, providing testimony that other men were in charge of handling what he continually referred to as "loan funds" instead of investments.

"We did not do investing; we bought and sold property," Griggs said.

Griggs testified that as chief of the Southern Cherokee Nation, an American Indian tribe based in Alabama, he was setting up the program because he has the responsibility to care for tribal children who do not have families or homes.

"Everything we were doing was for the Indian Nation," said Griggs, who also uses the title "Chief Obobaway" and repeatedly answered questions in court by starting with the phrase, "As chief of this Nation."

During a cross-examination of Griggs lasting far longer than the initial defense, Assistant U.S. Attorney William T. Grimmer attempted to punch holes in the validity of Griggs' tribe and its humanitarian aspirations.

After Griggs said that part of his tribe's treaty was crafted by Thomas Jefferson in 1827, Grimmer asked Griggs if he was aware Jefferson died in 1826.

"I don't know when he died," Griggs responded.

Grimmer also questioned whether Griggs used tribal roles and terms -- chief, counselor, government -- to persuade investors to swiftly back the program that was intended to turn vast northern Indiana farms into orphanages for American Indian children.

Griggs faces 41 counts of wrongdoing, after the government dropped one charge.

Griggs' wife, Julie, who is charged with 19 counts of wire fraud and conspiracy, also took the stand.

Julie Griggs testified that she only signed financial documents when she was asked to, was not involved in business meetings and never believed the family was acting illegally.

Julie Griggs said she believed the family's increased money flow came from Rodger's real estate business and she always believed Rodger intended to find housing for orphaned American Indians.

[debbieredbear]

April 22. 2006

Guilty verdicts in fraud trial
Family convicted in orphanage investment scheme


PATRICK M. O'CONNELL
Tribune Staff Writer

SOUTH BEND -- A man who lured investors with fictional plans to turn northern Indiana estates into refuges for American Indian orphans was convicted Friday night on federal fraud charges.

Rodger D. Griggs, a former Elkhart, Osceola and LaPorte resident, was found guilty on 41 counts of wire fraud, money laundering, tax evasion and conspiracy after a three-week trial in U.S. District Court in South Bend.

A jury of eight women and four men found Griggs guilty of persuading investors to pour millions of dollars into the orphanage program, then steering the money into the accounts of family and friends.

Griggs and family members were convicted of using the investment money to buy and live at the lavish properties he falsely claimed were for the underprivileged children, including the LaPorte ranch that once belonged to Oakland Athletics owner Charlie O. Finley.

Griggs, who took the stand in his own defense, testified he never received loan money from anyone and insisted everything he did was for the benefit of the Southern Cherokee Nation, a tribe based in Alabama where he said he serves as chief.

Griggs' wife, Julie, also was convicted on 18 counts of wire fraud and conspiracy.

Shawn H. Shroyer, Griggs' son-in-law, was found guilty on seven counts of wire fraud and conspiracy. Griggs' brother, Donald, was convicted on one count of conspiracy.

As the verdicts were read by U.S. District Judge Allen Sharp, Shroyer buried his head in his hands. Rodger Griggs stared straight ahead.

Julie Griggs wept as she left the courthouse, and Rodger, who moves with the aid of a walker, consoled her by putting his right arm around her shoulders.

Attorneys for the government and defense were not allowed to comment pending a Tuesday hearing to determine if Rodger and Julie Griggs and Shroyer should forfeit funds based on the verdict.

The jury took about eight hours to convict the family on all counts following a trial that featured the testimony of dozens of investors who said they lost thousands of dollars in the bogus scheme.

Several witnesses testified they were drawn to the investment opportunity because it offered outstanding returns without risk to principal and simultaneously served a humanitarian purpose by forming living opportunities for American Indian orphans.

Griggs claimed he had access to secret government funds because of his role as a American Indian tribal chief, a contention the government argued was a fabrication.

Sentencing is scheduled for Oct. 20.

Staff writer Patrick M. O'Connell:
poconnell@sbtinfo.com
(574) 235-6357