Alturas Indian Rancheria Leaders Accused of ‘Diverting’ More than $25 Million in Federal/State Tribal Funds

The Alturas Indian Rancheria, a small federally recognized tribe in Northern California, has been controlled for over a decade by a disputed “interim” Business Committee in what tribal members and their attorney describe as a clear criminal enterprise enabled by the Bureau of Indian Affairs.

The tribe is located in Modoc County, in the far northeastern corner of California. The county population was 8,700 as of the 2020 census.

Brought to our attention by former California Rep. Doug LaMalfa’s congressional staff, who had to dig into the matter, the Alturas Indian Rancheria is a very small tribe with only 5 members and 20 acres of land. It has a General Council as the primary governing body. Membership and leadership have been disputed for years, often tied to enrollment of individuals (including non-blood or adopted members), voting rights, and control of assets like potential gaming or other businesses.

But there are problems in paradise with the tiny tribe in its remote corner of California, including accusations of fraud, embezzlement, forgery, perjury in governance, mail disputes, improper enrollment/adoption of members to shift voting control, issues with illegal marijuana cultivation on tribal lands, illegal cigarette manufacturing… etc…

According to Alturas tribe member Wendy Del Rosa, no tribal elections have been held since at least 2008, yet significant tribe funds have disappeared. According to Del Rosa’s attorney, BIA appointed tribe leaders Philip Del Rosa (Wendy’s estranged brother) and Darren Rose “are embezzling all of the Tribe’s funds, including the Tribe’s 638 Contract Funds.”

Del Rosa’s attorney explains in a November 2025 letter (embedded below) to the Bureau of Indian Affairs:

In support of my position, I have attached a copy of a recent decision of the 9th Circuit Court of Appeals for your review that clearly demonstrates that Mr. Del Rosa and Rose are using tribal funds to engage in illegal activities. They can do this because the Bureau of Indian Affairs (“BIA”) appointed them as the interim government of the Tribe. It is long overdue for the BIA to withdraw the recognition of this interim government as the so-called interim recognition, a decision that has lasted over 10 years, has completely failed in the purpose for which it was originally issued.

Phillip Del Rosa and Darren Rose, have embezzled all the federal and Tribal funds intended to provide “essential governmental services” to the Tribal membership and divided it between themselves. Since no “essential governmental services” have ever been provided, what is the purpose of the governmental body the BIA appointed? The answer is simple; it serves no purpose other than to enrich two individuals empowered by the BIA to embezzle these funds.

Wendy Del Rosa provided background and broke down the issues and illegal activities for the Globe.

During the Obama Administration the BIA chose to recognize the 2012 Business Committee — consisting of Phillip Del Rosa (Chairman), Darren Rose (Vice Chairman), and Wendy Del Rosa (Secretary/Treasurer) — on an “interim” basis to supposedly maintain government-to-government relations and provide essential services. This “temporary” recognition has now lasted more than Fourteen years with no end in sight.

Phillip Del Rosa, the current Chairman, had previously been unanimously removed from his position by the Tribal membership for serious corruption — including embezzlement of tribal funds and theft of tribal property totaling millions of dollars. Despite this, the Obama-era BIA reinstated him and his faction, effectively overriding the tribe’s own actions.

Massive Fund Misappropriation

According to Wendy Del Rosa, since the BIA’s intervention, the committee (controlled by Phillip Del Rosa and Darren Rose) has allegedly diverted more than $25 million in federal and state tribal funds intended for members:

• $12.375 million from California’s Revenue Sharing Trust Fund (Funding for Non-Gaming Tribes and Local Governments)
• $8.622 million in federal ISDEA/P.L. 638 contract funds (contract with tribes to assume planning and administering certain federal services and programs with federal funding)
• $4.25 million in COVID-19 CARES/ARPA and PPP relief funds (Small Business Paycheck Protection Program The Paycheck Protection Program established by the CARES Act, is implemented by the Small Business Administration)
• $2.8 million+ from the Desert Rose Casino, Indian gaming casino owned by the Alturas Rancheria.

She says that none of these funds have gone to other tribal members or essential governmental services. The funds have instead been divided between Phillip Del Rosa and Darren Rose for personal enrichment, including Del Rosa’s purchase of a vacation home in Hawaii using approximately $4 million of these proceeds.

Additional millions have flowed through tribal enterprises including a cigarette manufacturing/distribution via Darren Rose’s Azuma Corporation, a gas station, and a trucking company, funded with tribal resources but operated solely for the benefit of Del Rosa and Rose.

The tribe was busted in 2015 by the DEA and Bureau of Indian Affairs for an enormous illegal marijuana-processing operation. 12,000 marijuana plants were uprooted from the Alturas Indian Rancheria and the Pit River XL Ranch tribal land in Modoc County after Wendy Del Rosa, the sister of the “purported” tribal chairman, complained her brother had converted a tribal hall into a marijuana processing plant, Courthouse News reported.

CBS covered the federal marijuana bust as well.

Illegal Activities

• Cigarette Trafficking: Darren Rose’s Azuma Corporation has been embroiled in ongoing litigation with the State of California for violating cigarette tax laws and the federal Prevent All Cigarette Trafficking (PACT) Act. In 2024, Rose was held in contempt of court for violating a federal injunction. In November 2025, the 9th Circuit Court of Appeals upheld key claims against the tribal officials, rejecting sovereign immunity defenses for injunctive relief and personal liability. Azuma also sells cigarettes directly to consumers, including non-Indian consumers, through its own retail smokeshops.
• Earlier attempts to launch online gambling (Desert Rose Bingo) and large-scale marijuana grows have also drawn regulatory scrutiny and raids.

Wendy Del Rosa says she has tried to get the Bureau of Indian Affairs to revisit their decision, but has never even received a reply. And she has had to legally distance herself from Phillip Del Rosa’s and Darren Rose’s illegal activities.

Wendy Del Rosa also told the Globe that she had a personal retirement account set up with John Hancock, and her retirement account was even stolen by Phillip Del Rosa and Darren Rose. “In October of 2017, Phillip and Darren appointed themselves as trustees for the Tribes 401k plan. Something that never existed prior. They managed to convince John Hancock to send all of my retirement funds to them.” She provided the Globe with a statement which shows the adjustment and that Darren Rose of the Alturas Indian Rancheria requested it on the statement.

Her attorney has pleaded with the BIA for action to stop the embezzlement:

The BIA must stop assisting this criminal enterprise and assist the Tribal members by withdrawing the power from which Messrs. Del Rosa and Rose utilize to embezzle these funds – the BIA recognition of the two of them as the current interim government.

Furthermore, I demand that you report this misuse of federal funds, including the COVID/CARES funds, to the US Attorney for the Central District of California for investigation and prosecution. AG Bondi has made this a priority for the Administration and the BIA, as a member of the Administration with specific knowledge of the misuse of federal funds, almost identical to the recent indictment of the Congresswoman, must compel reporting this to the U.S. Attorney. It is even more essential that you assist in stopping such criminal behavior since the reason Messrs. Del Rosa and Rose can embezzle federal funds is because the BIA continues to empower them to do so. It is also truly shameful and a dereliction of public trust not to do so.

You have a legal and moral obligation to bring this to an end. Please be advised if you do not withdraw recognition immediately, I will appeal your decision or in action to the Interior Board of Indian Appeals, contact the US Attorney myself, and take this issue to the press as an example of the Trump administration aiding and abetting the embezzlement of federal funds.

Next: Where did the taxpayer funds go? Illegal cigarette manufacturing, illegal marijuana grow, the casino, trucking company, the gas station at the Alturas Indian Rancheria, a home in Maui?