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MONDAY, JUNE 10, 2002

A federal appeals court on Friday paved the way for a South Dakota tribe to recover funds illegally paid to a casino company, vindicating a tribal member who once helped to uncover a federal fraud scheme.

The 8th Circuit Court of Appeals ruled that an agreement between the Sisseton-Wahpeton Tribe and Casino Magic should have been approved by federal gaming regulators. The three-judge panel overturned a decision which dismissed the lawsuit brought by Maynard Bernard.

Bernard, as a result of the "false claims" lawsuit, stands to gain up to half of an estimated $7 million the tribe paid to the company under a contract that was since terminated. The rest would go to the tribe.

Bernard was part of a 1994 investigation which resulted in five federal indictments. He and other tribal members uncovered documents which showed former chairman Russell Hawkins and others used the tribe's name to obtain surplus equipment that was sold on to others at a profit.

The tribe never saw any of the money made from the scheme.

Get the Story:
US EX REL. BERNARD v. CASINO MAGIC CORP. No. 01-2024 (8th Cir. June 07, 2002)