Sue Masten is sworn in as vice chair of the Yurok Tribe in California in 2012. Photo: Sue Masten

California | Openings & Closings

Vice chair of Yurok Tribe also lost money in casino scam case

Thursday, August 13, 2015

The Yurok Tribe of California was swindled out of $250,000 by a convicted felon who also took $5,500 from Vice Chairwoman Sue Masten.

Masten, a former president of the National Congress of American Indians, was securing a personal loan from an investment company when Charles “Duke” Sheehan entered the picture. He promised $8 million to help the tribe open the Redwood Hotel and Casino at a time when funds were scarce.

"He sounded really good," council member Mindy Natt told The North Coast Journal of Sheehan, who apparently conversed with tribal leaders by phone and e-mail but never visited the reservation.

The Redwood Hotel Casino in Klamath, California. Photo: Redwood Hotel Casino

The deal turned out to be too good to be true. After the tribe deposited $250,000 into an escrow account, Sheehan allegedly took the money, along with $5,500 sent by Masten for her own loan.

As part of another scam that occurred around the same time, Sheehan, 70, was indicted on securities fraud charges, pleaded guilty and was sentenced to 36 months in federal prison. A prosecutor in Del Norte County is looking into the tribe's allegations of theft but was not aware of Masten's situation, the Journal reported.

The Journal was the first to report on a letter that Chairman Thomas O'Rourke sent to tribal members last month about the theft of $250,000. Masten also posted about it on her Facebook page.

"It breaks my heart to have to report that the Tribe has been defrauded of $250,000.00 from a non profit foundation that purposed to make a commercial loan to us for the hotel casino operations," Masten wrote on July 11, the day the letter was mailed. "To make it worse I introduced the individual who introduced the Council to the foundation. I met this person thru a personal business loan l applied for and also was defrauded and lost the loan fee of $5,500.00 that I paid."

Masten announced on July 25 that she is seeking re-election.

Get the Story:
The Casino Con (The North Coast Journal 8/13)