A Cameron Park man has been sentenced to eight years and one month in federal prison for defrauding the United Auburn Indian Community.
Darrell Patrick Hinz, 51, was sentenced Thursday by U.S. District Judge Troy L. Nunley. In addition to the prison term, Hinz was ordered to pay $18,830,000 in restitution for defrauding the United Auburn Indian Community, conspiring to launder monetary instruments and filing false tax returns, according to a U.S. Attorney’s Office news release.
According to court documents, between October 2006 and December 2007, Hinz, along with Gregory Scott Baker of Newcastle and Bart Wayne Volen of San Diego, engaged in the fraud scheme. In October 2006, the United Auburn Indian Community hired Volen, a developer, to finish construction on a school, a community center and administrative offices on property the tribe owned on Indian Hill Road in Auburn. Baker was the tribal administrator whose duties included overseeing the Indian Hill office project. In this position, he was subordinate to only the tribal council.
Hinz was a contract employee hired by the tribe to manage construction at the Indian Hill office project site. Both Baker and Hinz were required to approve all invoices before the tribal council would sign checks to pay for completed work, authorities said.
In carrying out the scheme, Volen submitted false and inflated invoices to the United Auburn Indian Community, and Hinz and Baker worked to ensure that the tribal council would pay the pay those invoices. Volen later paid them for their participation in the scheme, authorities said.
The tax offense stemmed from Hinz’s failure to report the income he derived from the scheme. As a result, authorities said, the United States suffered a tax loss of $830,000.
Baker and Volen previously pleaded guilty to the similar charges in the case. Baker was sentenced May 26 to more than five years in prison and ordered to pay restitution. Volen is to be sentenced Aug. 4.
Chris W. Eatough, in June 2013, pleaded guilty to a felony related to the case and is to be sentenced July 28.