Thursday, March 21, 2013

Chukchansi: Who's Minding the Mint? Who is Defrauding Whom?

Do BONDHOLDERS HAVE RIGHTS? WHO is watching the money. Carmen George has the story in the SIERRA STAR NEWS

Two Chukchansi leaders, each claiming to be the rightful chairperson of the Picayune Rancheria of Chukchansi Indians, remain at odds this week, with each raising concerns about how the tribe's money is being handled.

Reggie Lewis' tribal council maintains control of the tribe's bank accounts, and Nancy Ayala's tribal council has maintained control of security and management at Chukchansi Gold Resort & Casino, along with many members of the tribal gaming commission -- although Lewis' council said many of these individuals, including Ayala, were suspended by a quorum of the tribal council last month, and should not be conducting business on behalf of the tribe

Lewis' group has alleged that casino cash is being mismanaged under the direction of Ayala.

The alleged mismanagement includes: hoarding casino cash in casino cages instead of depositing it into the financial institution that maintains the tribe's deposit control accounts -- mandated by agreements the tribe has with its casino bondholders; opening a new account with a small Fresno area bank to deposit cash, which is not authorized by tribal agreements in place; and suing the tribe's depository bank in a "kangaroo tribal court created overnight," stated a recent letter from Lewis to tribal members.

"Thank goodness they don't have the authority to bring such a lawsuit because they would have created a bad act under our indenture (with the casino's bondholders) and the tribe would lose all of its government funding as a result ($1 million a month from casino profits)," said Rob Rosette of Rosette Attorneys at Law, the firm representing the council led by Lewis.

A $17,000 check to Ayala's attorney was also illegally cashed at the casino because the banks that hold the tribe's accounts do not allow Ayala to access the tribal funds, said Richard Verri, lawyer with Rosette Attorneys at Law.

Read the rest of the story at the link above...


nickey said...

This is a perfect example of "the pot calling the kettle black. Reggie Lewis and his thugs have stolen just as much money as Nancy Ayala .Some of the info Reggie reported was just LIES. He always uses scare tactics to get what he wants and what he wants is general membership to be so afraid of Nancy Ayala that they will support Reggie in his fight against Nancy. I hate to say this but the membership is weak in knowledge and will fall for these scare tactic. There will be no peace in this tribe until membership gets their head screwed on right take a long hard look at all these criminals and see them for what they are. The Chukchansi tribe is on the edge of a cliff and we will not survive the fall.

Anonymous said...

Seems to me the white man has screwed over the Indians again. Throw the Indians a bone and while they fight over scraps they charge them outrages interest only payments, a big balloon payment thats due in 5 yrs that they won't be able to pay, so they can re-structure an even more lucrative deal for themselves in 2020. Bondholders aren't in the business of gambling, they let the uneducated do that.