Ex-tribal lending leaders make plea deal in corruption case

HELENA, Mont. (AP) – Two former leaders of an online lending company have made plea deals with federal prosecutors investigating corruption at Plain Green, the high-interest lender that has made millions of dollars for the Chippewa Cree Tribe.

Neal Rosette and Billi Anne Morsette agreed to plead guilty to charges in two indictments that they embezzled money, took bribes and didn't pay federal income taxes, according to recent court filings.

The deals set the total amount to be paid back to the tribe at about $1.3 million. Rosette also would owe the IRS more than $232,000, and Morsette more than $165,000.

U.S. District Judge Brian Morris must accept the plea agreements. He set a change-of-plea hearing for Dec. 1.

Rosette and Morsette used to run Plain Green, which makes short-term Internet loans at high interest rates. They also ran the tribe's first lending company, the now-defunct First American Capital Resources.

The first indictment accused Rosette and Morsette of funneling more than $55,000 from First American to themselves and ex-Chippewa Cree tribal councilman John “Chance” Houle, who was previously convicted of corruption. Morsette and Rosette plan to plead guilty in that case to conspiracy to embezzle tribal funds, a charge that carries a maximum penalty of five years in prison and a $250,000 fine.

The second indictment accused the pair of taking more than $1.2 million from Plain Green by diverting the cash to a Nevada company called Encore Services, which would then send it back to a consulting company owned by Morsette, Rosette and another tribal official, James Eastlick, Jr.

Morsette and Rosette plan to plead guilty to accepting bribes, a charge that carries a maximum 10 years in prison and a $250,000 fine. Rosette also agreed to plead guilty to tax evasion and Morsette will plead guilty to willful failure to file a tax return.

Encore Services was a partner in the First American operation, and it had a deal with Rosette and Houle that allowed it to receive a percentage of revenues from Plain Green, according to the indictment.

The tribe is suing Encore Services for the rest of the money paid under what the tribe called a fraudulent contract. That lawsuit estimates Plain Green made at least $25 million for the tribe between 2011 and 2014.

Houle and Eastlick made plea agreements in separate corruption cases that prevent them from being prosecuted in online lending case.