Mississippi Choctaw’s Audit Firm Quits After FBI Raid
After more than a decade of serving as an outside auditor for casinos owned and operated by the Mississippi Band of Choctaw Indians, Price Waterhouse Coopers has stepped down, reported the Clarion-Ledger.
A spokesperson for the auditing firm would not comment on why, although the company’s decision coincides with the time FBI agents subpoenaed records from the tribal chief.
On July 12, some 40 FBI agents raided the Mississippi Choctaw’s Pearl River Resort, which includes two gaming facilities: Golden Moon and Silver Star casinos in Choctaw near Philadelphia, Mississippi, and seized hard drives and documents.
The raid came during a turbulent period for tribal leadership. Phyliss J. Anderson would have taken office July 12 in the chief’s $466,000 salary position except for a council vote that negated that election and called for a new one September 6. In the July 5 runoff election, Phyliss J. Anderson was expected to be declared the new Tribal Chief with 1,971 votes to former Chief Beasley Denson’s 1,618 votes. While Denson conceded that day, two days later, the Choctaw Tribal Council cited voting irregularities and negated the results of the June 14 regular election and, thus, the runoff as well.
Another newspaper, The Neshoba Democrat, quoted “multiple sources” as saying the FBI investigation could have been about alleged election fraud.
According to WLBT in Jackson, Mississippi, the raid was “likely” related to Denson and Mercury Gaming of Atlanta, Georgia. Its affiliated marketing arm, The Titan Agency, manages the tribe’s Pearl River Resort. A website report by the station’s Cheryl Lassiter says that sources told her Denson had been paying Mercury Gaming chief executive Doug Pattison $60,000 per month, a amount that increased to $250,000 in February, and tribal council was unaware of these payouts.
Two days following the July 12 raid, Moody’s Investors Service downgraded money borrowed by the Choctaw Resort Development Enterprise, $200 million in securities, to junk bond status, reported the Clarion-Ledger.
The FBI’s investigation may “indicate potential internal control weaknesses and could affect Choctaw’s casino operations in the future,” Moody’s report stated, reported the Clarion-Ledger.
When Anderson and Denson face off again September 6, they will compete against a new candidate who qualified to race, Shirley Berg. “There is a need for a leader who is trustworthy and has integrity to lead the tribe into the future,” Berg told the Clarion-Ledger. “… My vision is to empower the tribe’s legacy of self-determination, bringing the voice of the people back into tribal government.”
Anderson says when she takes office, she will cancel tribe contracts with Mercury Gaming. Recent events “have been difficult for our tribal people,” Anderson said in a statement. “With an overturned election, FBI raid and downgrade of the tribe’s bonds, we have some serious challenges to overcome, no doubt.”
Recently, Chief Beasley Denson has been touring Choctaw communities on his re-election campaign.
The tribe also operates the Hattiesburg, Mississippi-based Bok Homa Casino.
Showing posts with label Mercury Gaming. Show all posts
Showing posts with label Mercury Gaming. Show all posts
Monday, August 15, 2011
Sunday, July 24, 2011
Choctaw tribe's deals focus of FBI, chief says
Choctaw tribe's deals focus of FBI, chief says
PHILADELPHIA, Miss. (AP) — Mississippi Choctaw Indians Chief Beasley Denson says media reports earlier this month that an FBI search of tribal records includes those related to the Choctaws' relationship to an Atlanta management company are true.
Denson told The Clarion-Ledger on Tuesday that the search warrant presented the tribe by FBI agents on July 12 mentioned Atlanta-based Mercury Gaming Group and its marketing arm, the Titan Agency. Denson said he has no idea what the investigation is examining.
Denson has not returned calls to The Associated Press seeking comment.
Mercury manages the Choctaws' Pearl River Resort in Philadelphia and Bok Homa casino in Jones County. The tribe pays Mercury CEO Doug Pattison more than $2.4 million a year and has inked multimillion-dollar marketing deals with the firm.
On Mercury's website, Pattison takes credit for growing revenues as CEO of the Silver Star Casino to more than $250 million.
Several news organizations — quoting sources — have reported that the FBI was investigating the tribe's contract with Mercury Gaming. The FBI has declined to comment.
Denson said former Mississippi Gaming Commission executive director Paul Harvey Jr. is the current CEO. Harvey and Pattison have not returned calls to The Associated Press for comment.
"It's untimely," Denson said of the FBI's action. "A business has to go through difficult situations. We're no different than any other business. We maintain a good operation."
Denson said he hired Harvey because of his integrity.
And, Denson said he intends to continue to use Mercury and Titan "until we find something better. They know the wisdom of how to connect with old customers and new customers."
A new election for chief is scheduled for Sept. 6. The Tribal Council threw out the results of a July 5 runoff, which Denson lost to challenger Phyliss J. Anderson because of alleged voting irregularities.
During the campaign, Anderson publicly called for an audit on the casinos and transparency in the tribe's spending. Anderson also didn't return calls to the AP.
Denson said the Choctaws continue to pay more than $1.3 million a year for a multi-year contract signed in 2008 to be a sponsor for the Atlanta Braves. He said the deal is for four or five years at $1.3 million to $1.5 million a year. In return, "The Lexus Level" at Turner Field was renamed "The Golden Moon Casino Level."
He said Titan officials had advised the tribe to make the sponsorship deal with the Braves. He also said he allows Mercury and Titan officials to use the Choctaws' skybox at Turner Field.
Advertising in Atlanta — almost six hours from Philadelphia — rather than in closer cites such as Birmingham and Tuscaloosa is an attempt to "keep up with the Joneses," Denson said.
Pattison's pay went from $60,000 a month until February to more than $200,000 a month. Denson said the hike was because Mercury is now also consulting on the Bok Homa casino.
Denson acknowledged he has run up enough gambling debts in the past to have markers at casinos, including those in Las Vegas.
A marker is a short-term loan the casino extends to a player. Denson said he doesn't have any markers now.
Denson, who prefers playing blackjack, said he knows some high-stakes gamblers but doesn't include himself in their company.
PHILADELPHIA, Miss. (AP) — Mississippi Choctaw Indians Chief Beasley Denson says media reports earlier this month that an FBI search of tribal records includes those related to the Choctaws' relationship to an Atlanta management company are true.
Denson told The Clarion-Ledger on Tuesday that the search warrant presented the tribe by FBI agents on July 12 mentioned Atlanta-based Mercury Gaming Group and its marketing arm, the Titan Agency. Denson said he has no idea what the investigation is examining.
Denson has not returned calls to The Associated Press seeking comment.
Mercury manages the Choctaws' Pearl River Resort in Philadelphia and Bok Homa casino in Jones County. The tribe pays Mercury CEO Doug Pattison more than $2.4 million a year and has inked multimillion-dollar marketing deals with the firm.
On Mercury's website, Pattison takes credit for growing revenues as CEO of the Silver Star Casino to more than $250 million.
Several news organizations — quoting sources — have reported that the FBI was investigating the tribe's contract with Mercury Gaming. The FBI has declined to comment.
Denson said former Mississippi Gaming Commission executive director Paul Harvey Jr. is the current CEO. Harvey and Pattison have not returned calls to The Associated Press for comment.
"It's untimely," Denson said of the FBI's action. "A business has to go through difficult situations. We're no different than any other business. We maintain a good operation."
Denson said he hired Harvey because of his integrity.
And, Denson said he intends to continue to use Mercury and Titan "until we find something better. They know the wisdom of how to connect with old customers and new customers."
A new election for chief is scheduled for Sept. 6. The Tribal Council threw out the results of a July 5 runoff, which Denson lost to challenger Phyliss J. Anderson because of alleged voting irregularities.
During the campaign, Anderson publicly called for an audit on the casinos and transparency in the tribe's spending. Anderson also didn't return calls to the AP.
Denson said the Choctaws continue to pay more than $1.3 million a year for a multi-year contract signed in 2008 to be a sponsor for the Atlanta Braves. He said the deal is for four or five years at $1.3 million to $1.5 million a year. In return, "The Lexus Level" at Turner Field was renamed "The Golden Moon Casino Level."
He said Titan officials had advised the tribe to make the sponsorship deal with the Braves. He also said he allows Mercury and Titan officials to use the Choctaws' skybox at Turner Field.
Advertising in Atlanta — almost six hours from Philadelphia — rather than in closer cites such as Birmingham and Tuscaloosa is an attempt to "keep up with the Joneses," Denson said.
Pattison's pay went from $60,000 a month until February to more than $200,000 a month. Denson said the hike was because Mercury is now also consulting on the Bok Homa casino.
Denson acknowledged he has run up enough gambling debts in the past to have markers at casinos, including those in Las Vegas.
A marker is a short-term loan the casino extends to a player. Denson said he doesn't have any markers now.
Denson, who prefers playing blackjack, said he knows some high-stakes gamblers but doesn't include himself in their company.
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