Tuesday, July 2, 2013

Nancy Ayala Faction LOSES in Court: CEASE Violating Indenture She is Told. Lewis to Oversee Chukchansi Expenditures.

New York Court Orders Nancy Ayala to Immediately Cease Violating Indenture and Authorizes Chairman Reggie Lewis to Oversee Expenditures at Chukchansi Gold Resort & Casino

Press Release:

 A New York Court today ordered former Tribal Council member Nancy Ayala to immediately cease violating the Chukchansi Tribe’s Indenture Agreement and begin depositing casino revenue in the Tribe’s Rabobank account. The court also ordered that an audit be performed by Ernst & Young, a big four national accounting firm, to track the cash and other disbursements that have occurred during the time of Ayala’s control.

Although the court explicitly did not take sides in the dispute, the court Order authorized Chairman Reggie Lewis to work with casino management to ensure that the Indenture is not further violated by Ayala. Chairman Lewis will have the opportunity to review the casino’s financial records each week and to approve all disbursements prior to their being made including payroll checks to casino employees and payables to casino vendors. Under the Order, casino management will report to both Chairman Reggie Lewis and Nancy Ayala, and must provide Chairman Lewis with a list each week of casino revenue and expenses to be paid.

“We have been urging the court to get involved to stop Nancy Ayala from violating the Tribe’s Indenture and this Order allows us to do that,” said Chairman Lewis. “We look forward to working with casino management to ensure that all casino employees are qualified for their positions and all casino expenses are paid in a timely manner. We will immediately follow the court Order and begin to oversee the activity at Chukchansi Gold Resort & Casino to protect the best interests of the Chukchansi Tribe.”

The court Order requires that the money deposited in the Rabobank account only be used for casino expenses, putting an end to Nancy Ayala’s practice of taking bags of cash from the casino
and issuing vouchers to her family and friends that could only be cashed at the casino cage.

Under the court Order, casino revenue may not be used to support Tribal government or Tribal
Gaming Commission operations or expenses by either Chairman Reggie Lewis or Nancy Ayala.

Chairman Lewis and the Tribal Council will be in constant communication with the Court to
insure that the provisions of the court’s Order are fully complied with by casino management
who have a fiduciary duty to perform their duties according to professional standards.
Chairman Lewis stated, “We are working as quickly as possible to fund government programs
for the benefit of all 900 plus tribal members now that the court has intervened to stop conduct
that has been so harmful to our Tribe.”
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