Cheyenne and Arapaho Tribes oust casino executives due to fraud

Tuesday, May 2, 2017  

The Cheyenne and Arapaho Tribes fired two top gaming executives after an investigation revealed wrongdoing.

The tribe had agreed to pay $25,000 a month, plus 1 percent of revenues from the Lucky Star Casino, to lease land adjacent to the facility in Clinton, Oklahoma. The parcel was used as a parking lot.

The arrangement violated the Indian Gaming Regulatory Act because it consisted a misuse of gaming revenue and a violation of the sole proprietary interest in the gaming operations, according to a settlement the tribe reached with the National Indian Gaming Commission, a federal agency.

Unbeknownst to the tribe, its chief executive officer and director of gaming operations was in on the deal, according to the investigation. Brian Foster, who had put his own money into the land used for the parking lot, has since been terminated. The general manager of the casino also was fired.

"As we move forward, we will look to hold those people accountable who have squandered away our tribal resources for their own personal gain," Governor Gov. Eddie Hamilton told The Oklahoman.

Over the course of 18 months, the tribe paid $1.2 million for the parking lot, the paper reported. That was more than 10 times the appraised value of the land, according to the NIGC.

“The tribes were instrumental in identifying the misuse of the gaming revenue that is a clear violation of IGRA. They have provided full cooperation to the NIGC throughout the investigation of this matter,” Jonodev O. Chaudhuri, the chairman of the agency, said in a press release.

The settlement between the tribe and the NIGC was finalized last month.

Read More on the Story:
Investigation uncovers scheme to skim gaming revenue from Oklahoma tribes (The Oklahoman 4/29)