Michael Thomas, the former chairman of the Mashantucket Pequot Tribal Nation of Connecticut, is being sued in state court for allegedly defaulting on a bank loan.

Thomas was offered an unsecured $1 million line of credit from Sovereign Bank. The loan was later extended to $5.2 million.

Thomas was reportedly using the money to pursue a real estate transaction that never came to fruition. His lawyer alleges that the bank extended the loan in hopes of influencing his actions as a tribal official.

"We are proposing this transaction in order to gain a foothold in the Foxwoods Casino relationship. We are currently trying to win Foxwoods' cash management business and other ancillary business from this casino," one bank memo reads, The New London Day reported.

Thomas, who was forced out of office last year amid concerns about the tribe's financial situation, was expected to testify today, the paper said.

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Bank officials justify Thomas loan as marketing maneuver (The New London Day 7/29)