Jury Deadlocks in Trial of Men Accused of Stealing from Pechanga Tribe

A Riverside jury deadlocked today in the trial of two men accused of bilking the Pechanga Band of Luiseno Indians out of $4 million by pocketing funds reserved for the Temecula-based tribe's casino insurance.

RELATED:

On their second day of deliberations, jurors informed Riverside County Superior Court Judge Elisabeth Sichel that they were hopelessly deadlocked 8-4 in favor of finding James William Riley, 48, of Corona, and Ryan Jay Robinson, 41, of Temecula not guilty on most counts, prompting Sichel to declare a mistrial.

A defense request to dismiss the case will be heard Monday afternoon.

"The facts just aren't there regarding an intent to steal," Chris Jensen, Robinson's attorney, told City News Service. "The prosecution seems bothered by the profits that (Mr. Riley) made, and they're trying to equate profits to theft."

Jensen said that in speaking with jurors after proceedings, it was clear that they had trouble understanding the prosecution's allegations.

"The tribe might have been overcharged (on insurance premiums), but is that stealing?" the attorney said.

Riley and Robinson were indicted in February 2010 on multiple felony charges stemming from a scam that the District Attorney's Office alleges the pair perpetrated in 2005 and 2006.

Riley, a former insurance broker and partner at Riley, Garrison & Associates, faced 20 years in prison and six-figure fines if he had been convicted of three counts each of grand theft, commercial bribery and money laundering.

Robinson, the Pechanga tribe's former chief financial officer, faced up to seven years behind bars had he been convicted of grand theft and three counts of bribery.

On all but the bribery counts, the jury voted 8-4 for acquittal. On the bribery counts, the vote was 10-2 for guilt.

According to Deputy District Attorney Jeanne Roy, the defendants began their alleged illicit activity shortly after Hurricane Katrina struck in September 2005. Commercial insurance rates skyrocketed following the disaster, enabling the pair to justify exorbitant insurance costs from which they gained, Roy said.

She alleged that Riley artificially inflated the tribe's property and risk insurance premiums to pocket large sums disguised as fees, with Robinson's complicity.

The prosecution contended that Robinson received $190,000 under the table for his participation. Jensen characterized the payments as "loans" that his client needed to pay down divorce-related debts.

According to Riley's attorney, Souley Diallo, his client never committed a crime, and the prosecution's case boils down to a misunderstanding of complex financial arrangements.

"This is about making a profit. It's good to make a profit. At what point does profiting too much mean you're stealing?" Jensen told CNS. "Finding a way to make a profit and stay in business is what we do in America."

Riley is free on $1 million bail, and Robinson is free on a $120,000 bond.