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Special Master Recommends Court Seize Control of System Holding Hundreds of Millions for Individual Indian Trust Beneficiaries

WASHINGTON, D.C. - A federal judge today unsealed a scathing investigative report calling the lack of computer security for Individual Indian Monies (IIM) trust accounting data "deplorable and inexcusable" and recommending that the court seize control of the system.

The report, by court-appointed Special Master Alan Balaran, said Balaran hired a computer security firm in June and July of this year and – with the court’s secret permission – hacked into the Interior Department system and created a false account in his name without being detected by Bureau of Indian Affairs employees. [See Special Master’s Report at p. 137-8, on www.indiantrust.com]

"It is disgusting and shameful that Secretary Norton and her predecessors have allowed this situation to exist and have done nothing. They should be in jail", said Elouise Cobell, lead plaintiff in the Cobell v. Norton litigation to force Interior and Treasury to clean up the trust. "They’re treating money that belongs to individual Indians" some of the poorest people in this nation - like it’s a candy store. This trust belongs in the hands of an outside receiver who knows what he’s doing."

Despite a series of outside reports critical of the system since 1989, and although U.S. District Judge Royce C. Lamberth said in 1999 that he was "alarmed and disturbed” by the lack of a plan to fix the security breaches, "today, nothing has changed", Balaran said. "After 10 years of blistering reviews generated by federal agencies and private contractors, this deplorable condition is inexcusable."

"And perhaps most significantly", he said, “why was the court not informed - via the Quarterly Reports [from the Interior Secretary to the judge] - that Indian trust data was virtually unprotected?"

A contempt trial for Interior Secretary Gale Norton - including allegations that she signed false reports to the court - is scheduled to start Monday, December 10.

"Interior... has demonstrated a pattern of neglect that has threatened, and continues to threaten, the integrity of trust data upon which Indian beneficiaries depend", Balaran said. “Rather than take any remedial action, its senior management has resorted to the condescending refrain that has consistently insinuated itself into the federal government’s relationship with Native Americans, in general, and with IIM holders, in particular.

"And that is one that requests forbearance and trust on the grounds that reform continues to be the 'highest priority'. It is the view of the Special Master that, in this instance, such trust is not warranted, requests for forbearance should be denied and promises of future compliance should not be credited. The stakes are simply too high."

"It is the recommendation of the Special Master that the Court intervene and assume direct oversight of those systems housing Indian trust data. Without such direct oversight, the threat to records crucial to the welfare of hundreds of thousands of IIM beneficiaries will continue unchecked."

For media inquiries contact Philip Smith, by phone: 202-661-6350, or send e-mail to: psmith@policyimpact.com.