Government calls payout proposal ‘absurd'
U.S. government rejects a $58B Indian payout

By Chris Casteel Comments 10
Published: April 11, 2008

WASHINGTON — The U.S. government doesn't owe money to American Indians suing over management of their trust accounts, and their claim for $58 billion is "absurd,” the government says.

The Indians originally sued the government in 1994 seeking a full accounting of the funds held by hundreds of thousands of individual Indians, and the lawsuit should be dismissed if they no longer want that accounting, the government says in a brief filed Wednesday in U.S. District Court here.

Moreover, the U.S. judge presiding over the case doesn't have the authority to award any money to the Indians and should cancel the trial scheduled for June on the matter, the government says.

The government's brief came in response to one filed by the plaintiffs three weeks ago seeking $58 billion to compensate for money they say was collected by the government for individual Indian trust account holders but not paid to the accounts.

According to the Indians, about $3 billion was collected in the past 120 years for the accounts but never paid. Holding on to that money has allowed the government to borrow less money to finance its spending, the plaintiffs say.

And, they say, based on Treasury bill rates going back over the time period, the government's reduced borrowing costs have meant a total benefit of $58 billion.

Equitable relief sought

Aware that U.S. District Judge James Robertson cannot require the U.S. government to pay damages, the Indians say the money owed isn't damages but "equitable” relief that any financial trust would have to provide if it improperly benefited from the use of trust funds.

The Indians also are asking the judge to return to the trust all the land that has been sold since the trust's inception in the late 19th century. An estimated 40 to 54 million acres were allotted, but only about 10 million acres remain.

The land is the source of most of the money in the individual Indian trust accounts. Robertson recently ruled that it would be "impossible” for the government to perform an historical accounting reaching back more than a century and provide accurate account balances to about 300,000 account holders. In its brief this week, the government rejected every argument the Indians made about why the trust is owed money and how much is owed.

Toolsview all

Related Topics: U.S. Government, Judiciary, U.S. Courts, Civil Trials, Trials

Sponsored Results

Refinance Now at 4.25% Fixed
No hidden fees-4.4% APR! No obligation. Get 4 free quotes. No SSN req.
MortgageRefinance.LendGo.com

Need Affordable Health Care?
Get Affordable Health Insurance Quotes Online - Plans from $30 / Month
USInsuranceOnline.com

Something to say about this topic? Submit a Letter to the Editor online

Thank you for joining our conversations on newsok. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.

Log in below or sign up (it's free).

The Presidential candidates were who reference was made,sorry.

john, Poplar - Apr 20, 2008 at 7:14 pm

Report as inappropriate or

If you have a IIM account within the Bureau of Indian Affairs, then you would be eligible for pay out. The pay out would be one time only. It will be interesting if the government comes through. Maybe these candidates should be put on the spot about this concern.

john, Poplar - Apr 20, 2008 at 7:13 pm

Report as inappropriate or

If the government pays the Native Americans then who gets the money that the accounts accumulate from now on. Do the accounts still get divided among all the Native people? The money the government takes in should be going up because of the price of oil today.

Candace, Lakeland - Apr 19, 2008 at 1:24 pm

Report as inappropriate or

When someone confiscates someones property and uses for his own benefit, it is called "Collusion" and it is illegal and a crime. When someone commits this crime in a financial scheme as a fiduciary trustee then they can be charged three times the amount of money owed. So the government owes 3 times 58 Billion to the Native Americans.

Candace, Lakeland - Apr 19, 2008 at 1:18 pm

Report as inappropriate or

It seems there has been too much delay, what is owed should be paid. In increments or lump sum,the sooner the better. If the government can do for the Japanese way back when, then surely for the first nations people it should come through.

john, Poplar - Apr 13, 2008 at 11:13 pm

Report as inappropriate or

sorry CHINA

nocona, santa fe - Apr 11, 2008 at 2:52 pm

Report as inappropriate or

forked tongues speek again!!! it will never change. It's funny how the world is protesting Chian when the good old USA is the exact same thing. Occupied lands!!!

nocona, santa fe - Apr 11, 2008 at 2:52 pm

Report as inappropriate or

My father just received information on debit cards issued by prominant banks to use for IIM account holders, of course they have fees for everything!! Another way for "them" to manipulate tribal land owners out of more money! It's just disgusting how greedy big business and the government can be, just give the land back and don't worry about the money!

S, Tecumseh - Apr 11, 2008 at 11:48 am

Report as inappropriate or

"U.S. government rejects a $58B Indian payout"
Probably because it's to close to what they really owe. I'm sure they were hoping to get out of this for a couple hundred million. Stealing is stealing, now fess up and settle this dang stupid lawsuit. Man it's a drop in the bucket compared to what we're paying out in the war in pork to the contractors. Just move one small item number in the defense budget and pay it.

news, Shawnee - Apr 11, 2008 at 9:02 am

Report as inappropriate or

The suit which began in 1994 dragged on. All the plaintiffs wanted were documents, showing how much money had been paid to trust funds over the years, and documents indicating how much (according to Senate-verified treaties) should have been paid. At first, the government indicated it was just having trouble finding the required documents. But there was so much delay three Secretaries of the Interior were held in contempt of court, over the years. Finally the government claimed all the documents had been misplaced or destroyed. Now, fourteen years later, the government changes its tune -- it claims it never owed the Indians anything to begin with, and even it it did it has paid everything it owed. (This is the lawnmower defense -- a man loans someone a lawnmower, and it is returned damaged, and the owner sues .... the defendant says 1. I never borrowed that lawnmower 2. even if I did, it was already broken 3. the owner is a well known liar.) Maybe the government has changed its mind because it is out of money -- spending nearly a trillion dollars on a mismanaged war in Iraq has brought it the edge of bankruptcy, and the Chinese won't loan it any more money. The irony is that is no one is more patriotic than American Indians.

earl, oklahoma city - Apr 11, 2008 at 7:05 am

Report as inappropriate or