Sunday, September 16, 2012

Judge Rules That Santa Ysabel Tribe Can't Claim Sovereignty At It's Convenience.

Santa Ysabel wanted to file bankruptcy, but as a sovereign government, they aren't allowed to.  They tried to say their business enterprise is a separate unit.   LOL.  Try to sue them for damages and see how quickly they'd claim sovereignty.

Here's the story:

The future of the Santa Ysabel Casino, its 120 employees, and the tribe that owns it, is as unpredictable as when a jackpot might hit on any of its slot machines.
The tribe owes nearly $54 million to creditors, and has virtually no money to pay them. It is embroiled in several legal battles and have lost several others. It owes the Yavapai Apache Nation of Arizona tens of millions of dollars in loans and San Diego County $3 million more for services the tribe has promised to pay for but never has.
The small tribe with big dreams has descended into a financial black hole.
The Iipay Nation of Santa Ysabel declared Chapter 11 bankruptcy earlier this summer, but a judge ruled Sept. 4 that the casino is not an unincorporated company, as the tribe argued, but instead that the casino and the tribe are one and the same. As a federally recognized tribe, it is ineligible for bankruptcy under the law because a tribe is a governmental unit. That means the tribe is on the hook for what it owes.
In Sacramento Superior Court, the Apaches are arguing they should receive money earmarked for the Santa Ysabel tribe under the “Revenue Sharing Trust Fund,” which the California Gambling Control Commission administers.
The tribe depends on that money for its basic day-to-day running of its government.
Trust funds are available to all tribes that do not have gaming enterprises or have small casinos with fewer than 350 slot machines. The Santa Ysabel Casino has 349 machines, which it leases from another creditor. The money comes from the bigger gaming tribes as shared revenue and amounts to $1.1 million annually
The commission is withholding the latest quarterly payment from the fund, and the Santa Ysabel tribe is suing the state in San Diego federal court to get the commission to release it.

Read the rest of the story HERE
Post a Comment