{"id":104922,"date":"2019-05-14T13:47:04","date_gmt":"2019-05-14T20:47:04","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=104922"},"modified":"2019-05-14T13:47:04","modified_gmt":"2019-05-14T20:47:04","slug":"wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis\/","title":{"rendered":"Wisconsin\u2019s St. Croix Chippewa Tribe Asked to Pay $5.5M in Fines Even Though Purportedly in \u2018Financial Crisis\u2019"},"content":{"rendered":"

The St. Croix Chippewa Indians of Wisconsin are now facing $5.5 million in fines after a detailed review by the National Indian Gaming Commission (NIGC) into alleged improper spending of casino revenue.<\/p>\n

\"\"
Outgoing National Indian Gaming Commission Chairman Jonodev O. Chaudhuri has let the St. Croix Chippewa Indians of Wisconsin know they are facing $5.5 million in fines. It comes after an inquiry into spending of casino funds. (Image: Indianz.Com)<\/figcaption><\/figure>\n

The proposed penalties from the national tribal regulator were announced in a letter<\/a> last Thursday along with a stern rebuke by the NIGC that tribal leaders and others took $1.5 million \u201cto line their own pockets.\u201d<\/p>\n

The tribe runs three casinos: in Turtle Lake, Danbury and Hertel. Recent gross gaming amounts from the venues were not immediately available.<\/p>\n

St. Croix Chippewa Finances<\/h2>\n

Outgoing NIGC Chairman Jonodev O. Chaudhuri noted the penalties come as the tribe claims to be \u201cfacing a financial crisis.\u201d Tribal officials recently told the commission it is \u201cimpossible to overstate the precariousness of the tribe\u2019s current financial situation” and that there are “limited resources in reserve.\u201d<\/p>\n

The tribe has some 1,000 members, with \u201cmany\u201d living in poverty, according to the Milwaukee Journal Sentinel<\/em>. Members get some $400 a month as a dividend per capita from tribal gaming venues.<\/p>\n

Tribal officials have yet to respond to the media about the allegations. Letters were sent to the tribe by the NIGC this year including the one from last week.<\/p>\n

“Money that could and should have been used to fund governmental and tribal programs was diverted away from the tribe to fill the pockets of a few individuals,\u201d Chaudhuri chastised tribal leaders in Thursday\u2019s correspondence.<\/p>\n

I will take the tribe at its word that its current financial situation is indeed precarious,\u201d Chaudhuri wrote. \u201cBut I also recognize that this may not be the case but for the misappropriations of net gaming revenue\u2026.\u201d<\/p><\/blockquote>\n

Nor has there been \u201cserious efforts\u201d by tribal leaders to address the root of the problem, he said. The misappropriations \u201cwould have gone undetected\u201d without the NIGC inquiry, Chaudhuri said.<\/p>\n

He explained the federal Indian Gaming Rights Act (IGRA) was set up to ensure the entire tribe \u201crather than a few individuals in positions of power, are the primary beneficiaries of gaming.\u201d\u00a0The wrongdoing also impacts the \u201creputation\u201d of tribal gaming nationally, Chaudhuri said.<\/p>\n

The controversy reduces trust levels among the gaming public. Also, it \u201cdoes immeasurable damage to the industry,\u201d Chaudhuri added.<\/p>\n

Additionally, the events send a message that tribal regulators cannot be trusted — \u201cthat Indian gaming is not regulated,\u201d the chairman warned.<\/p>\n

Details on Fines<\/h2>\n

The NIGC\u2019s fine is broken down based on the alleged wrongdoing by individuals named in a Notice of Violation (NOV). It was sent to the tribe last month.<\/p>\n

Specifically, $1.5 million was assessed for $345,632 in payments made to tribal council member Elmer \u201cJay\u201d Emery and his company, Rez Connections.<\/p>\n

A $1 million fine was assessed for payments to Jeff Taylor and Kate Wolfe Taylor of the Tribal Gaming Commission. Another $1 million fine was assessed for payments to tribal Chairman Lewis Taylor, Tribal Council Member Crystal Peterson, and former tribal council members Carmen Bugg and Stuart Bearhart.<\/p>\n

There was also a fine of $1.5 million related to payments to \u201cconsultant\u201d Lawrence Larsen.<\/a> Another $500,000 in fines was for additional alleged misuse of revenue and failure to audit contracts.<\/p>\n

\n

The proposed total penalties could have been higher than $27 million. Altogether, the NIGC listed 527 violations<\/a> of tribal and federal regulations in the NOV.<\/strong><\/p>\n<\/div>\n

The fine is at this point a recommendation. It still could be appealed to the entire NIGC.<\/p>\n

Beyond the fine, the tribe could face further investigation by federal law enforcement or tax authorities, Rory Dilweg<\/a>, an attorney at Colorado-based Berg Hill Greenleaf Ruscitti, said last month.\u00a0It was also revealed this week that in 2010, Charles Pellino, an attorney for the tribe, had warned of possible misuse of millions of dollars in funds by the tribe in a letter sent to an unnamed tribal official, according to the Milwaukee Journal Sentinel<\/em>.<\/p>\n

The NIGC inquiry was a key achievement for Chaudhuri during his tenure as chairman.\u00a0He is leaving the post this month after several years, first as acting chair in 2013 and permanent chair starting in 2015.<\/p>\n

Later this month, he will head the Indian Law and Policy Group at the Quarles & Brady law firm, according to Indian Country Today<\/em>. He was also recently named Muscogee (Creek) Nation Ambassador.<\/p>\n","protected":false},"excerpt":{"rendered":"

The St. Croix Chippewa Indians of Wisconsin are now facing $5.5 million in fines after a detailed review by the National Indian Gaming Commission (NIGC) into alleged improper spending of casino revenue. The proposed penalties from the national tribal regulator were announced in a letter last Thursday along with a stern rebuke by the NIGC […]<\/p>\n","protected":false},"author":44,"featured_media":104946,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,18456],"tags":[],"acf":[],"yoast_head":"\nWisconsin\u2019s St. Croix Chippewa Tribe Asked to Pay $5.5M in Fines Even Though Purportedly in \u2018Financial Crisis\u2019 - Casino.org Wisconsin\u2019s St. Croix Chippewa Tribe Asked to Pay $5.5M in Fines<\/title>\n<meta name=\"description\" content=\"The St. Croix Chippewa Indians of Wisconsin are now facing $5.5 million in fines after a detailed review by the National Indian Gaming Commission (NIGC) The St. Croix Chippewa Indians of Wisconsin are now facing $5.5 million in fines after a detailed review by the National Indian Gaming Commission (NIGC) into allegations of improper spending of casino revenue. 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The tribe claims to be in financial crisis.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-14T20:47:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/05\/jonodevchaudhuri012315.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"937\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ed Silverstein\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgedsilv\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ed Silverstein\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis\/\",\"url\":\"https:\/\/www.casino.org\/news\/wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis\/\",\"name\":\"Wisconsin\u2019s St. Croix Chippewa Tribe Asked to Pay $5.5M in Fines Even Though Purportedly in \u2018Financial Crisis\u2019 - Casino.org Wisconsin\u2019s St. Croix Chippewa Tribe Asked to Pay $5.5M in Fines\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/wisconsins-st-croix-chippewa-tribe-asked-to-pay-5-5m-in-fines-even-though-purportedly-in-financial-crisis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/05\/jonodevchaudhuri012315.jpg\",\"datePublished\":\"2019-05-14T20:47:04+00:00\",\"dateModified\":\"2019-05-14T20:47:04+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/b3771b02527bcbda9af984b9b1ff098e\"},\"description\":\"The St. Croix Chippewa Indians of Wisconsin are now facing $5.5 million in fines after a detailed review by the National Indian Gaming Commission (NIGC) The St. Croix Chippewa Indians of Wisconsin are now facing $5.5 million in fines after a detailed review by the National Indian Gaming Commission (NIGC) into allegations of improper spending of casino revenue. 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