Jurors told Pechanga Resort and Casino bilked out of $4 million [The Press-Enterprise, Riverside, Calif.] - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 16, 2012 Newswires
Share
Share
Post
Email

Jurors told Pechanga Resort and Casino bilked out of $4 million [The Press-Enterprise, Riverside, Calif.]

Richard K. De Atley, The Press-Enterprise, Riverside, Calif.
By Richard K. De Atley, The Press-Enterprise, Riverside, Calif.
McClatchy-Tribune Information Services

July 12--An insurance broker worked hand-in-hand with Pechanga Resort and Casino's former chief financial officer to bilk more than $4 million out of the tribe in hidden overcharges, a prosecutor told jurors Wednesday, July 11.

The complicit executive received $130,000 in kickbacks that he used to pay gambling debts, Supervising Deputy District Attorney Jeanne Roy said in her opening statement.

The two men, former broker James William Riley, of Murrieta, and ex-financial officer Ryan Jay Robinson, of Temecula, are accused of grand theft and commercial bribery. Riley also is charged with money-laundering. A grand jury indicted them in February 2010.

During her talk with jurors, Roy outlined a pattern in 2006 and 2007 of overcharged insurance invoices signed by Robinson that put the alleged illicit money in Riley's pocket -- with subsequent cashier check payments back to Robinson.

Roy said when the two men were questioned, they said insurance prices were much higher as a result of insurance companies' losses due to 2005 Hurricane Katrina destruction along the Gulf Coast.

The alleged scheme began to unravel in late summer 2006 after an employee noticed irregularities with one invoice, triggering an investigation by casino financial executives, Roy said.

Robinson was continuing to sign inflated insurance invoices even after he left the resort and went to work for the Pechanga Government Center, a separate entity that has nothing to do with resort and casino operation, Roy explained.

Riley's defense attorney stood by the explanation his client and Robinson gave during initial inquiries.

"He did his job, saving his client, his largest client, Pechanga Resort and Casino, millions of dollars," defense attorney Souley Diallo said. "And he was well-compensated for it. That's the reason we are here."

Riley, of the firm Riley, Garrison & Associates in Murrieta, served as the broker for the majority of the tribe's insurance until ties with him were severed in early 2007.

Roy told jurors that in one instance, the invoice finagling amounted to $2.8 million in money stolen from the resort and casino operation, and in another instance, $1.4 million.

Roy told jurors that the $1.4 million reduction in insurance fees from an earlier 2006 invoice was not reflected in a subsequent invoice.

"Instead of (the money) going back to Pechanga, or showing the decrease, that reduction becomes the agency fee," she said.

The $2.8 million, she said, was masked in an invoice that was challenged by Interim Chief Financial Officer Jerry Konchar, who approved it anyway because he faced losing an important insurance contract in the tough post-Katrina market.

Diallo said he would show jurors how one of the theft charges simply involved the discrepancy between a listed down payment and a subsequent invoice. "We will explain what the difference is, and why that difference does not constitute a theft."

He also said the $2.8 million to Riley came after he took a chance on a competitive $11.6 million policy that could have resulted in little or no commission for him. "It turns out he was able to get that policy for less, about $2 million less, and, yes, he made a lot of money off that deal, but took a substantial risk."

Roy said forensic accounting traced the alleged bribe money that went from Riley's personal account to cashier's checks made out to Robinson, who signed them over to a man named Thomas Lavalle.

"Tom Lavelle was a person that carried money," Roy said. "He's a money man, or a bag man, whatever you want to call it, for a bookie. Mr. Robinson was gambling, and the amount that Mr. Robinson was paying was increasing."

Diallo said he did not dispute that Riley gave Robinson what he called substantial amounts of money. He said it was to help Robinson through a divorce in 2005 and then, in 2006, as a gift to help him buy a business. He said there would be testimony that Riley had no knowledge of Robinson's purported gambling problems.

He also said Robinson did not unilaterally sign off on the invoices; they also required board member approval.

Robinson's attorney, Chris Jensen, said there would be no evidence that his client knew anything about the inner workings of Ryan's insurance agency.

Like Diallo, he told jurors Robinson "did not have a checkbook in hand, he did not have unfettered discretion" in paying the insurance invoices, but needed board approval. He also acknowledged there were payments from Riley to Robinson, but there was no documentation about what those payments were for.

The trial is expected to last until the end of the month. Both men are free on bond.

___

(c)2012 The Press-Enterprise (Riverside, Calif.)

Visit The Press-Enterprise (Riverside, Calif.) at www.PE.com

Distributed by MCT Information Services

Wordcount:  784

Newer

Farm Bureau also dropping home insurance customers; 3,000 in South Carolina are getting non-renewal letters [The Post and Courier, Charleston, S.C.]

Advisor News

  • Millennials are ready to bring their advisor to the family table
  • How healthcare inflation can eat up a client’s retirement income
  • Global economy ‘resilient’ in the wake of massive disruption
  • Cryptocurrency legislation takes one step forward with bipartisan support
  • IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS
More Advisor News

Annuity News

  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
  • Matthew Michelini named Athene president, with an eye on annuity growth
  • Lincoln Financial Announces Executive Leadership Transitions
  • MetLife Expands Guaranteed Retirement Income Offering with Innovative Flexible Annuity Option
  • How annuities can help protect retirees from financial scams
More Annuity News

Health/Employee Benefits News

  • Getting disability benefits got harder after the Social Security Administration’s staff was slashed and program rules were changed by Trump
  • State suit accuses insurer of fraud
  • Hecklers disrupt Hinson rally in Cedar Rapids
  • Hecklers disrupt Cedar Rapids campaign rally as Ashley Hinson touts stock trading ban
  • Reed: Can these assets be saved?
More Health/Employee Benefits News

Life Insurance News

  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
  • Lincoln Financial Announces Executive Leadership Transitions
  • Setting the record straight on premium-financed IUL
  • AM Best Affirms Credit Ratings of Halyk-Life, JSC
  • AM Best Affirms Credit Ratings of Symetra Financial Corporation and Its Subsidiaries
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Press Releases

  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet