Peoria Tribe issues $2 million fine against casino managers

Thursday, June 13, 2019  

The Peoria Tribe is seeking more than $2 million from the former managers of its casino in Oklahoma after being hit with a federal enforcement action.

On May 10, the National Indian Gaming Commission issued a notice of violation to the tribe. It laid out 77 infractions, accusing the tribe of misusing gaming funds and operating the Buffalo Run Casino and Resort without an approved management agreement.

The tribe is appealing the notice but blames the former managers for the violations. The tribal gaming commission has since issued fines of $2,067,561 against David J. Qualls and Tony D. Holden in hopes of addressing the enforcement action.

“The Peoria Tribe takes these issues seriously and we will cooperate fully with the NIGC and other federal authorities to resolve its concerns related to these events,” Chief Craig Harper said on Thursday. “We hope to avoid or limit penalties we may be assessed for the wrongful conduct of those two men.”

The tribal gaming commission has since revoked the licenses of Qualls and Holden. Final orders were issued on May 14. following hearings that took place late last year and earlier this year, with both decisions citing concerns that had been raised by the NIGC as far back as 2007.

Despite the concerns, the NIGC's notice of violation said the tribe continued to operate Buffalo Run "under an unapproved amendment to its management agreement." It acknowledged, though, that the tribe had ended its relationship with Qualls and Holden by the time the notice was issued.

But former chairman Jonodev Chaudhuri, who signed the notice before stepping down from the NIGC, warned the tribe that it could face a fine of $52,596 per violation. If fines were assessed for all 77 violations, the total would come to more than $4 million.

"There is no way to correct past violations. The Chair, however, will consider the tribe's efforts to mitigate the damages, including recouping overpayments of management fees, when determining an appropriate civil fine amount," the notice reads.

NIGC Vice Chair Kathryn Isom-Clause has taken over day-to-day operations of the agency following Chaudhuri's departure. Commissioner E. Sequoyah Simermeyer also remains on board.

Under the Indian Gaming Regulatory Act, two commission members are sufficient to proceed and decide appeals.