Judge Rules Against Peoria Tribe's $2M Fine on Casino Management Firm
A judge in Oklahoma has ruled that the Peoria tribe's gaming commission does not have the authority to impose a $2 million fine on Direct Enterprise Development LLC (DED), a casino management company it accused of "unjust enrichment."
Judge John Canavan of Pottawatomie County determined that the commission "lacked jurisdiction" to fine DED, which ran Buffalo Run Casino & Resort in Miami, Oklahoma. The tribe had sued DED owners David Qualls and Tony Holden, claiming they had "improperly received management fees in excess of $2 million through an accounting process inconsistent with GAAP (generally accepted accounting principles)."
The lawsuit came after the tribe was reprimanded by the federal National Indian Gaming Commission (NIGC) for allegedly violating the Indian Gaming Regulation Act (IGRA) by operating under an unapproved amendment to its management agreement with DED. Under IGRA, net gaming revenue can only be used for tribal government, programs, economic development, general welfare of tribal members, and charitable organizations or local government. Thus, issues involving commercial management companies and tribal casinos are sensitive.
The NIGC found that the casino made payments to DED principals in a manner inconsistent with the terms of the management agreement. The tribe filed a civil suit against Qualls and Holden, accusing them of "embezzlement, unjust enrichment, and deceit." They claimed they were unaware of the violations until they received notice from NIGC in 2017.
However, the judge dismissed all eight claims against Qualls and Holden and ruled that the fine had not been authorized by tribal ordinance or by the commission's bylaws. Judge Canavan stated that "neither identified any amount of potential fine or method of calculation as required by federal, state, or tribal constitutions."
Therefore, the Peoria Tribe Gaming Commission lacked the jurisdiction to issue any fines against either defendant, and the unauthorized fines that the tribe aimed to collect are a violation of due process, according to Canavan.
Holden told Tulsa World that the litigation had ruptured his life. "I've lost everything I own – home, marriage, every dollar. And there's no recourse because they have sovereign immunity," he said.
Lawyer Mike McBride III, who represents the Peoria tribe, said the tribe considers the case to have been "wrongly decided" and intends to appeal.
Read also:
- Currently, You Can Score Discounted Apple AirPods
- Experience Classic Mac OS Versions Directly in Your Web Browser
- Utilizing a Credit Repair Service: Timing and Selection Guidance
- NCAA Sports Betting Rules Should be Relaxed, Says Iowa Football Coach Kirk Ferentz
Source: www.casino.org
