A federal judge has upheld a jury verdict for the Cayuga Nation in a racketeering lawsuit involving contraband cigarette sales on its reservation and ordered two defendants to pay more than $261,000 in legal fees, costs and sanctions.
Chief U.S. District Judge Brenda Sannes rejected efforts by Dustin Parker and Nora Weber to overturn the December verdict, according to a statement from the Cayuga Nation.
Following a four-day trial, jurors found Parker and Weber violated the federal Racketeer Influenced and Corrupt Organizations Act by selling contraband cigarettes and harming the Nation’s businesses.
The court found there was sufficient evidence for jurors to conclude the defendants used proceeds from cigarette sales to open and stock the Montezuma Pipekeepers store, according to the Nation’s summary of the 48-page decision.
The judge also rejected an argument that the conduct was not directly connected to losses suffered by the Nation’s businesses. The damages awarded by the jury must be tripled under the federal RICO law, the court determined.
Sannes ordered Parker and Weber to pay more than $240,000 in attorneys’ fees and costs. The court also imposed $20,000 in sanctions related to the destruction or loss of evidence during the litigation.
The total award is $261,495.06 and may be collected in full from either defendant, the Nation said.
Clint Halftown, the Nation’s federal representative, said the decision affirmed the Cayuga Nation’s rights and its ability to protect its businesses and sovereignty through the courts.
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