Mashantucket Roulette

In case you missed the current implosion of Foxwoods --

Rick Green's comments need no further elaboration about the failure of Foxwoods --

The most fascinatinating story in Connecticut politics right now isn't the despiriting leadership in Hartford or Mayor Perez's latest arrest. It's the spectacular crash and burn now unfolding on the Mashantucket Pequot reservation, where the world's richest Indian tribe -- which not so long ago was an impoverished nonexistent tribe -- can no longer pay its bills. This, at a casino complex in southeastern Connecticut where gamblers were still pumping close to $1 million per hour into slot machines during the month of June, on average.

It is as remarkable as the idea of paying Mashantuckets six-figure salaries merely because they were tribal members.

The New London Day reports today that tribal chairman Michael Thomas has been locked out and is being ousted from leadership of the roughly 800-member tribe. The Day has lead all media in reporting the tribe's financial difficulties, including the possibility that it will be unable to pay $2.3 billion in loans unless they are restructured. Indianz.com is also a good source.

From David Collins , writing in TheDay, these comments are striking --

Thomas, who recklessly ran his own financial ship aground, borrowing $5 million from Sovereign Bank and then refusing to pay it back, has also been busy during his tenure as chairman putting the tribe in financial peril.

One of his answers to the continuing collection lawsuit against him brought by Sovereign Bank was the incredible assertion that the money they lent him was a bribe, because they wanted tribal business, and therefore he doesn't have to pay it back.

Now apparently he is prepared to tell the tribe's lenders that he's not going to pay them back all the money they're owed either, presumably because it is more important, in this election year, that he promise you that your incentive checks won't be cut.

Thomas is a reformed drug dealer who in recent years has been associating in his private deals with some of Connecticut's biggest marquee criminals, people who have served substantial jail time in elaborate white collar crimes. Now he seems to be practicing thug business management.


From Indianz --

Informing fellow Pequots of the “dire” financial troubles in a recent letter, Mr. Thomas said while “earnings are down considerably and there are no signs of immediate improvement,” there will be no cutbacks in tribal government or reductions in “incentives,” the monthly payments Pequots receive, averaging $90,000 to $120,000 annually.

”What's the point of having these businesses if all that money goes to Wall Street and the Pequots can't pay their mortgages or buy medicine or food?” he asked.

Whatever the outcome of the debt restructuring effort, “Tribal Government and the Incentive will now be paid FIRST with any cuts or changes to our operation taking place after our members are paid,” Mr. Thomas said.