Meetings & Information




*****************************
****************************************************
MUST READ:
GET THE FACTS!






Showing posts with label Washington. Show all posts
Showing posts with label Washington. Show all posts

Saturday, December 10, 2016

False notion of sovereignty: "Wampum: How Indian Tribes, the Mafia, and an Inattentive Congress Invented Indian Gaming and Created a $28-Billion Gambling Empire"







Letter: False notion of sovereignty

Re: County warns of potential land annexation by Swinomish" (A1, Dec. 3)
The cliche "give 'em an inch and they'll take a mile" applies to Skagit County leadership in their dealings with the Swinomish tribe. The commissioners' decision not to challenge the tribe in 2014 when 941 Shelter Bay properties were stricken from county tax rolls after a dubious "tax advisory" was issued by the Washington Department of Revenue has emboldened the tribe to pursue further self-serving objectives at the expense of all Skagit County residents.
County leadership must resist this tribal action vigorously and at whatever cost. In his recent book, "Wampum: How Indian Tribes, the Mafia, and an Inattentive Congress Invented Indian Gaming and Created a $28-Billion Gambling Empire," attorney and Indian affairs expert Donald Mitchell recounts how the concept of "inherent tribal sovereignty" was more or less created "out of thin air" by Felix Cohen, a young New York attorney employed by the Department of Interior, and never validated by act of Congress that held statutory power over tribal authority. Mitchell states "....the doctrine of inherent tribal sovereignty is a sophistry" and goes on to state "Today, tribal leaders are adamant that their tribes and the United States government are, and have always been, co-equal sovereigns. But that is mythology, masquerading as history."
This false notion of tribal sovereignty, once accepted without challenge by the politicians and courts, opened the door to the development of what has become a massive Indian gambling enterprise, first through the expansion of tax-free cigarette trade, then bingo parlors and eventually full-fledged Las Vegas style casinos and the wide-spread corruption that follows.
As the mantra states, one only has to "follow the money" and take note how it is spent.
Bruce Elliot



Saturday, July 12, 2014

Gambling Addict Gambles Away Dead Girlfriend's Benefits!



Centralia Man Accused of Gambling Away Deceased Girlfriend's Labor and Industries Benefits

7/12/2014

By Stephanie Schendel, The Chronicle, Centralia, Wash.
McClatchy-Tribune Information Services


July 12--A Centralia man accused of gambling away his deceased girlfriend's Labor and Industries payments in the months following her death was charged with identity theft earlier this month.

Daniel R. Vaeth appeared in Lewis County Superior Court on July 3. Prosecutors charged the 58-year-old with first-degree identity theft.

The Department of Labor and Industries began investigating Vaeth, who is a convicted sex offender, in 2011 after learning that his live-in girlfriend, Bonnie Scott, had died the previous year and had since received thousands of dollars in benefits, court documents state.

Scott had legally been receiving her husband's L&I pension benefits after he died in 2007, court documents state. Scott was entitled to her former husband's L&I benefits under the Industrial Insurance Act.

But when Scott died in September 2010, a year passed before L&I found out about her death and stopped the payments, court documents state. Due to the delayed notification about her death, L&I calculated it overpaid by $15,181.

An investigator from L&I discovered that after her death, someone had withdrawn more than $8,000 from the woman's bank account at various ATMs throughout Centralia and at the Lucky Eagle Casino in Rochester, court documents state.

The investigator found that 11 out of the 15 times that money was withdrawn from Scott's accounts after her death from the ATM at Lucky Eagle Casino, Vaeth had used his player card at the casino during the same time.

When the L&I investigator and a Centralia police detective met with Vaeth, he allegedly admitted to taking the money from the account, court documents state.

First-degree identity theft is a class B felony and carries a maximum penalty of 10 years in prison.


http://m.insurancenewsnet.com/oarticle/2014/07/12/centralia-man-accused-of-gambling-away-deceased-girlfriends-labor-and-industrie-a-529405.html



Friday, April 11, 2014

Washington Casino Files for Bankruptcy, Blaming Competition



Washington Casino Files for Bankruptcy, Cites Smoking Ban
DBR Small Cap ,
Joseph Checkler,
April 09, 2014,
(c) 2014 Dow Jones & Company, Inc.
                       
The owner of a Washington state casino filed for Chapter 11 on Tuesday, tracing its decline to a 2005 state smoking ban that drew gambling smokers to local Indian casinos where smoking is still allowed.
 
In a petition filed with U.S. Bankruptcy Court in Seattle, casino owner GSG Corp. listed less than $50,000 in assets and between $1 million and $10 million in liabilities. The company operates Freddie's Club casino and Diamond Lil's card room, located around the corner from each other in Renton, Wash., a town about 12 miles southeast of Seattle....
 
http://bankruptcynews.dowjones.com/Article?an=DJFDBS0020140409ea49k1hqi&cid=32135018&ctype=ts&ReturnUrl=http%3a%2f%2fbankruptcynews.dowjones.com%2fArticle%3fan%3dDJFDBS0020140409ea49k1hqi%26cid%3d32135018%26ctype%3dts
 
 

Sunday, March 9, 2014

Prosecutors: Woman faked cancer to feed gambling addiction



March 6, 2014

Prosecutors: Woman faked cancer to feed gambling addiction


Julie Ann Dahlquist photo
Julie Ann Dahlquist
 
AUBURN, Wash. —

A 52-year old Auburn woman was sentenced to prison Thursday for a fraud scheme in which she claimed to be a cancer patient to get money from a senior citizen.

Julie Ann Dahlquist was sentenced to two years in prison and three years of supervised release.

According to the U.S. Attorney’s Office, between May 2009 and Sept. 2012, Dahlquist convinced an Auburn man to financially support her by claiming the money he gave her would pay for her cancer treatment.

Authorities said Dahlquist did not have cancer and used more than $400,000 to support her gambling addiction.

On Nov. 15, she pleaded guilty to Social Security fraud.

During her sentencing, U.S. District Judge Ricardo S. Martinez ordered her to pay $417,382 in restitution and said the crime was “no less than elder abuse – taking advantage of the victim’s good nature to steal his money.”

According to records filed in the case, Dahlquist told the victim that she had been diagnosed with cancer and had no medical insurance or any money for treatment.

The concerned victim wrote checks for as much as $9,000 about three times a month to pay for Dahlquist’s treatment. In all, the victim wrote 190 checks to Dahlquist for more than $400,000.
Prosecutors said Dahlquist used the money for gambling and other expenses and also defrauded the Social Security Administration disability program by concealing the $400,000 in proceeds from her fraud scheme so that she could collect $8,000 in Supplemental Security Income (SSI) benefits. She also fraudulently collected more than $8,000 in food and medical benefits from the State of Washington.

Writing to the court, prosecutors said, “This is a truly outrageous fraud that involved exploiting an elderly retiree’s trust and generous intentions. Julie Dahlquist recognized that (the victim) was a trusting and generous person, and because of those qualities she chose to prey on him. Furthermore, defendant invoked the serious disease of cancer as part of her fraud. The psychological harm to the victim is acute: his family reports that he is ‘devastated to think that someone he was trying to help would take such extreme advantage of him’.”


http://www.kirotv.com/news/news/prosecutors-woman-faked-cancer-feed-gambling-addic/nd7CH/

Friday, September 27, 2013

Gambling Addict Embezzles

How come the casinos get to keep the stolen funds?

Charges: State Dem. leader used campaign funds for gambling, booze

Tuesday, March 19, 2013

Young Gambling Addict Pours Water in 5 Slot Machines



After losing money to slot machines in Fife, man accused of dumping water on them
Post by Stacia Glenn / The News Tribune on March 15, 2013

The machines ate his money, so he took revenge.

Pierce County prosecutors say a 20-year-old man dumped water into five slot machines at a bingo hall in Fife after losing all his money in December.

The owner didn’t realize what had happened until much later, when the damaged machines were discovered and he reviewed surveillance tapes. It cost about $5,000 to fix the slot machines.

When the man recently returned to the bingo hall, employees recognized him and called police. An officer told him someone had dumped water on the machines.

“The defendant initially looked shocked and then he appeared relieved,” according to charging papers. “The defendant said that he had been playing slots and lost all of his money which made him made.”

It’s unknown how much money the man lost to the machines.
 Pierce County prosecutors have charged him with first-degree malicious mischief. He has not yet entered a plea to the charge. http://blog.thenewstribune.com/crime/2013/03/15/after-losing-money-to-slot-machines-in-fife-man-accused-of-dumping-water-on-them/  

Read more here: http://blog.thenewstribune.com/crime/2013/03/15/after-losing-money-to-slot-machines-in-fife-man-accused-of-dumping-water-on-them/#storylink=cpy

Friday, February 8, 2013

Sole Applicant Hired By Gambling Commission for $180,000




Massachusetts Gaming Commission hires Richard Day as executive director

Dan Ring, The Republican By Dan Ring, The Republican
on February 07, 2013
 
day.jpgN. Richard Day fields questions from the Massachusetts Gaming
Commission and then was hired as the panel's new executive director.
 
 
The Massachusetts Gaming Commission Thursday hired a casino regulator in Washington state to be its new executive director.

The commission tapped N. Richard "Rick" Day as its $180,000-a-year executive director. Since 2001, Day, 59, has worked as director of the Washington State Gambling Commission, leading 150 employees.

Stephen P. Crosby, chairman of the commission, said the hiring of Day will make a huge difference for the commission.

Day is expected to start work in Massachusetts in about a month. He will be in charge of the commission's staff. He also will oversee the licensing of employees and contractors, freeing commission members to focus on the criteria for evaluating applications for casino licenses, Crosby said.

"He has 11 years of experience running a facility similar in size to the one we will be," Crosby said. 

OH???

"He knows this business cold. He has a great law enforcement background. It's very exciting."

Commission members interviewed Day during their meeting before agreeing unanimously on a voice vote to hire him. Commissioner Bruce Stebbins, who was in charge of the search for the executive director, recommended Day to the commission.

Day said the casinos in the state of Washington are different from those expected in Massachusetts.

Washington has 28 casinos operated by Indian tribes, sixty "mini-casinos," including card games, and 3,500 organizations, including nonprofits, with some form of gambling.

Massachusetts is moving to license three casino resorts around the state, including one in Western Massachusetts, and one slots facility. One casino resort is currently reserved in the southeast part of the state for the Wampanoag Tribe of Mashpee.

Day said he is looking forward to the opportunity to do "something really remarkable" by helping create a new state agency in Massachusetts.

The commission began operating about 10 months ago, after approval of the state's casino law in November 2011. The commission has 23 employees and is expected to eventually have about 150.

"Your experience is exactly what we need," commissioner Gayle Cameron told Day.

Day is a former director of the Montana Department of Corrections, working at that job from 1995 to 2000.

He started his career as a police officer with departments in Bozeman, Belgrade and West Yellowstone, Montana.

During his interview, Day said gaming regulators should not be a barrier to the industry.

"Generally, I think it is essential to make sure you are working with people to promote compliance," Day said.

http://www.masslive.com/politics/index.ssf/2013/02/massachusetts_gaming_commissio_11.html
 

Wednesday, February 6, 2013

Search for state gaming chief comes down to lone finalist

Does anyone remember the Beacon Hill was asked to do an INDEPENDENT COST ANALYSIS?

Does anyone remember when Governor Slot Barns Patrick agreed to an INDEPENDENT COST ANALYSIS and developed amnesia after his  re-election?

Wait until you see how much political hacks cost Massachusetts taxpayers...and this in only the beginning.


Search for state gaming chief comes down to lone finalist


 
A man who has held the top job for Washington state's gambling industry for the past 12 years will be interviewed Thursday for the chance to become the first executive director of the Massachusetts Gaming Commission.
 
Rick Day, executive director of the Washington State Gambling Commission, was selected as the lone finalist for the job by Commissioner Bruce Stebbins. Day has 30 years of experience in law enforcement, according to a commission statement.
 
Day has helped negotiate tribal-state compacts in Washington where there are 28 Indian casinos operating, experience that could come in handy as the Massachusetts commission considers the viability of a Mashpee Wampanoag casino in Taunton.


In the history books, was Washington State ever considered one of the original 13 Colonies?

The Original 13 Colonies are different according the federal statute which is why the Aquinnah are 'different.' Wonder why folks can't do their legal homework?

 
In mid-March, the gaming commission is scheduled to re-evaluate the tribe's chances to get its casino bid on track. The tribe still has several federal hurdles to overcome, and developers and some politicians have urged the commission to open Southeastern Massachusetts to commercial bids.
 
Washington also has 58 commercial card rooms, which are sometimes referred to as mini-casinos, Susan Newer, a spokeswoman for the Washington commission, said.
 
Day was picked from among 100 applicants to lead the fledgling agency, commission spokeswoman Elaine Driscoll said in an email.
 
Several other potential finalists dropped out of the field, Driscoll said.
 
"Each withdrew before reaching that point in the process for their own personal reasons, citing inability to relocate or a hesitance to go through the public process," she wrote.
 
In January, commission Chairman Stephen Crosby announced that several finalists had been identified and were undergoing background checks. After the meeting, when the Times requested a list of finalists, the commission issued a statement refusing to release the names and saying that the candidates were not yet considered finalists.
 
Under the state's open meeting and public records laws, finalists for public jobs are considered public record. The Times has appealed the commission's decision to withhold the names, which is currently under review by the state supervisor of public records.
 
Before he joined the Washington commission, Day was director of Montana's Department of Corrections for five years. He was also the former bureau chief for the gambling control division for the Department of Justice in Montana for two years. He is also a former police officer.
 
Day is scheduled to be interviewed Thursday during the commission's public meeting. The meeting is broadcast live on the commission's website at www.mass.gov/gaming.
 
 

Saturday, September 15, 2012

More Woes for Casino



There are important similarities between the Cowlitz Tribe and the Mashpee Wampanoag/Genting proposal in Massachusetts.

The Mashpee Wampanoag/Genting proposal ignores the Tribe's lack of historical ties to Taunton, as well as their recent recognition, among other things.

The BIA's failures destroyed that fantasy.






In Our View: More Woes for Casino

Federal judge imposes deadline as Cowlitz Tribe and BIA lose momentum

 
Fortunately for Clark County residents who want to maintain the community's high quality of life, the Cowlitz Indian Tribe's proposal for a mega-casino near La Center has encountered yet another obstacle, this one placed by the federal agency that tribal officials have long hoped would champion their cause.As we've learned recently, the Bureau of Indian Affairs either lost or never reviewed important historical documents provided by casino opponents. That led the Justice Department to seek a delay in the federal proceedings.

But U.S. District Judge Richard W. Roberts recently denied that request and — to make matters worse for casino hopefuls and BIA official — set an Oct. 5 deadline for making a difficult choice:

The federal government must decide if it will defend itself in court or rescind the BIA's 2010 decision that supported the casino proposal, which lacked the crucial information from casino foes. Clearly, the BIA and tribal officials are backed into a corner by the federal agency's blunder, and the lingering reality that casino opponents are making a compelling case.

A year and a half ago The Columbian applauded the decision by several casino foes to appeal the BIA ruling to the U.S. District Court in Washington, D.C.

Those parties included Clark County, the city of Vancouver, owners of property near the proposed casino site on Interstate 5, La Center cardrooms and Citizens Against Reservation Shopping (CARS).

And now, that appeal reveals itself to be eminently valid. (Among CARS members is Columbian Publisher Scott Campbell. The newspaper has long opposed the proposed casino because it would negatively impact the local quality of life).

How the BIA could've lost or ignored key data provided by casino foes is a question that must be answered after close scrutiny by the U.S. Justice Department. For now, the second in a double whammy has been delivered to casino supporters.

The first haymaker was thrown by the worst recession in seven decades. Few visible efforts have been made by casino proponents in the past few years, no surprise considering the financial hole that all of America has been digging itself out of.

The second severe setback was this recent confusion and legal desperation within the BIA. According to a Thursday Columbian story by Stephanie Rice, some of the overlooked documents dispute tribal claims that the Cowlitz have historical ties to the land near La Center. That tribal argument was countered years ago, as revealed by these assertions we presented in a 2007 editorial: "Tribal headquarters are in Longview (Cowlitz County), a housing center is farther north in Toledo (Lewis County) and ample historical evidence" places the tribal homeland to the north of Clark County.

Another matter of dispute pertains to federal recognition. The U.S. Supreme Court ruled in 2009 that the federal government can only put land into trust for tribes that were under federal jurisdiction in 1934. But the Cowlitz tribe was federally recognized in 2000.

Thus, we see the Cowlitz casino proposal sinking deeper into a regulatory abyss from which it might never escape. And that's good for Clark County.

http://www.columbian.com/news/2012/sep/14/more-woes-for-casino/

Sunday, September 9, 2012

Freedom Players



The Freedom Players play their own way at a Lynden Washington casino - and make a statement about the exploitative nature of slot machines.






Wednesday, September 5, 2012

Chuck E. Cheese and the Road to Gambling Addiction




 Sep 4, 2012

Road to gambling addiction may begin in childhood

 


Looking back on his childhood, Luke Burbank thinks his fondness for gambling could have begun in front of a skee ball machine.

As a kid, Luke lived for a big win on the Chuck E. Cheese games. The string of tickets would fly out of the machine, hitting the floor and folding up over each other because there were too many to count.  When that happens, "you feel like you beat the system."  Stifling childhood gambling isn't the goal of a Lynnwood city ordinance that prevents merit-based ticketing at the local Chuck E. Cheese, but it is a result.  According to the restaurant, the ordinance has made the Lynnwood gaming area the lowest performing in the state.  Now Chuck E. Cheese wants to amend the ordinance, which only allows four tickets to be dispensed per game, no matter what score you earn on skee ball.  While the rule may be aimed at adult gambling, tiny ticket grasping hands are missing out. Luke feels for the kids who will never experience that high.  But his early days earning tickets could have also led to his love of craps, black jack, and poker. "I really think I developed my love of gambling at Chuck E. Cheese."  Luke took that love with him to the fair where he would breeze by the rides and head for the booth to knock over the milk pitchers. Even though they were rigged, he lived for that "beat the system" moment. Now, he enjoys Snoqualmie, Emerald Queen, and Muckleshoot casinos when he can't make it down to Las Vegas.  Dave tells a different tale of his childhood.  He and his dad would find themselves at the fair, walking by the booths with the milk pitchers and the other "seemingly impossible games." He would spend his dollar at the game booth just to show his dad he was having a good time.  "I hated parting with that dollar."  Dave would have rather put his dollar in a savings account at the bank and watch it grow - even then.  Maybe gamblers don't learn it, they're born with the itch to go "all in" and beat the odds.
The city council in Lynnwood is slated to reconsider the ordinance when it meets Tuesday.


http://mynorthwest.com/75/730822/Road-to-gambling-addiction-may-begin-in-childhood

Saturday, August 25, 2012

Gambling Addict sentenced for $4M in bogus insurance charges





Originally published Friday, August 24, 2012
     

Man sentenced for $4M in bogus insurance charges

A Lake Forest Park surgical technologist who claimed a gambling addiction led him to bill insurance companies for more than $4 million in bogus charges over nearly a decade was sentenced to one year in jail on seven counts of theft.
 
A surgical technologist who claimed a gambling addiction led him to bill insurance companies for more than $4 million in bogus charges, sometimes falsely claiming to be a doctor, was sentenced Friday to one year in jail.

An attorney for Kenneth R. Welling, 45, of Lake Forest Park, had asked the judge to impose no jail time, saying that Welling was a first-time offender and had accepted responsibility for his crimes.

Attorney Collette Tvedt claimed her client deserved mercy because he had already "lost" his wife due to his financial crimes and gambling addiction, and could pay restitution faster if he were able to work.

Welling apologized to the judge, his family and others, saying a year of intensive therapy had shown him "it was my gambling addiction fueling my illegal behavior."

But Deputy Prosecuting Attorney Andrew Hamilton said Welling deserved to spend some time behind bars because his crimes were serious and had gone undetected for nearly a decade.

In meting out the yearlong jail sentence, Superior Court Judge Carol Schapira acknowledged the destructive nature of addictions but said Welling's crimes were neither small errors nor were they isolated.

Welling, who pleaded guilty to one count of first-degree theft and six counts of second-degree theft in June, was told to report into custody next week. He will be eligible for work release.

The investigation into Welling was launched last year by the state Office of the Insurance Commissioner's Special Investigation Unit after a woman contacted the office to say her insurer had been billed for surgeries never performed.

In his phony bills to insurance companies, Welling sometimes falsely claimed to be a doctor or a physician assistant, charging documents alleged.

Welling billed five insurance companies at least $4.1 million for services he did not provide and was paid $461,000, according to court documents.

Welling, who assisted physicians during surgery, billed the insurers through his company, Alpine Surgical Services of Shoreline, court documents say.

In one case, Welling billed $140,323 as assisting surgeon for nine surgeries that never took place.

Over a five-year period, he billed another woman's insurer 107 times for 51 different surgeries, listing himself as the primary doctor, according to the charges. Hospital records show she'd had surgery only twice.

"Part of the reason he got away with this for so long is that he'd rarely challenge an insurer who paid little or nothing," said state Insurance Commissioner Mike Kreidler. "He'd just send them the bills and hope they'd pay."

State Patrol Detective Sgt. Dan L. Sharp, who investigated the case for the insurance commissioner's office, said that Welling was prosecuted for only a portion of the criminal activities uncovered. In all, he had five different scams going, and falsely billed insurance companies for more than $7 million, he said.


http://seattletimes.nwsource.com/html/localnews/2018987731_fakedoctor24m.html

Saturday, August 18, 2012

Sucking you in





August 17, 2012

Hamden TransAct's mystery casino-printer sale


Hamden specialty-printer maker TransAct Technologies Inc. says it sold to a U.S. casino a batch of its printers to be mounted to slot machines or other gaming devices to spit out promotional coupons to high rollers.

TransAct said it will connect its EpiCentral print system to 1,700 slot machines and upgrade 500 of the casino printers to ensure full usage of the system. EpiCentral connects to a device in a slot machine to let the casino send promotions and coupons directly to the players in real time.

TransAct said it is honoring the casino's request that it not be publicly identified for competitive reasons until its system goes live before the end of this year.

In Connecticut, TransAct initially tested EpiCentral at Foxwoods Resort Casino. The company has since launched the system live at casinos in Washington state and New Jersey.

http://www.hartfordbusiness.com/apps/pbcs.dll/article?AID=/20120817/NEWS01/120819845


Sunday, August 12, 2012

Online gambling would create a few winners, many losers




Online gambling would create a few winners, many losers
• Published August 12, 2012
 
There are troubling signs that Congress may cave to pressure from powerful online gambling interests and repeal the 2006 law that banned betting from your home computer.

Poker-playing lobbyists have spent $7.6 million since 2007 on efforts to reverse the Unlawful Internet Gambling Enforcement Act. Those interests contributed more than $174,000 to federal candidates in just the past election cycle.

Adding to the worry of those who oppose online betting, some U.S. Indian tribes are reversing their positions and supporting a federal law to legalize the activity. Once seen as a threat to Indian casinos, some tribes now see legalization under federal rules as inevitable and don’t want to miss the opportunity to participate.

The Washington Constitution prohibits all gambling activities, except those specifically allowed under state law. Internet gambling has never been authorized and the Legislature put an exclamation point on that in 2006 when it reaffirmed that Web betting was prohibited. The 2006 bill also increased the penalty from a gross misdemeanor to a class C felony.

Further, in Rousso v. State of Washington, the Supreme Court ruled 9-0 that the state’s Internet gambling law does not violate the constitution on the dormant commerce clause.

It is clear that Washingtonians don’t want to legalize Internet gambling.



But legalization on a federal level could emasculate state law, if it permitted Washington residents to place bets on websites located in other states. Nevada and Delaware have legalized Internet gambling, and it is believed that New Jersey will join them by year’s end.

The stakes are high for everyone because online gambling has the potential to become a modern day gold rush. The only winners in gambling are the casinos, whether they are physically located or exist in cyber space, and they see a virtual cash bonanza.

It is surprising to no one that Senate Majority Leader Harry Reid of Nevada is pushing to repeal the federal ban. Reid once headed up his home state’s gambling commission.

There are sufficient opportunities for responsible gamblers to place bets and enjoy the thrill of risking money on games of chance. The South Sound, for example, is flush with well-run casinos operated by the Chehalis, Nisqually and Squaxin tribes, who at least attempt to make the experience as much about entertainment, dining and other activities, such as golf and spa treatments.

Sitting alone in a room, placing bets online, may have a stronger appeal to addictive personalities, who can bring various unwanted forms of grief to themselves and their families. The simple act of forcing a gambling addict to drive to a casino to make their bets can be a deterrent to those who cannot control their gambling impulses.




Congress should not repeal the federal Internet gambling law, and continue to enforce the 1961 Wire Act making it illegal to wager over telecommunication systems that cross state lines for all types of betting.

Those who want to gamble online can travel to states, such as Nevada, where it is legal, as they do now to wager in casinos.

Washingtonians shouldn’t be forced into accepting Internet gaming by the federal government.

Monday, August 6, 2012

Another Tribe Renegs on Loans




Nooksack Tribe's unpaid casino loans fuel complex court battle


Published: Aug. 5, 2012
 
 
Nooksack Northwood Casino is located northeast of Lynden. (PHILIP A. DWYER/THE BELLINGHAM HERALD)
The Nooksack Indian Tribe is locked in a high-stakes legal battle with the banks that provided about $39 million in loans to finance the tribe's two casinos.

Both the tribe and the lenders are playing hardball in courtroom maneuvering that may do little more than set the stage for a negotiated settlement. In Seattle, a federal judge recently postponed hearings on motions filed in that venue, on grounds that settlement talks were under way.

The outcome of the complex financial and legal battle could have a serious impact on the 2,000-member tribe headquartered in Deming, and for operation of the tribe's two Whatcom County casinos, which provide hundreds of jobs for Indians and non-Indians.

Tribal Chairman Bob Kelly, who took office after the loans were made, said he preferred not to comment on a pending legal matter.

A Minneapolis law firm representing the lenders did not respond to phone calls seeking comment.

In legal cases filed in Whatcom County Superior Court, attorneys representing a Minnesota loan servicing firm have attempted to seize tribal bank accounts and get control of casino revenues to repay the unnamed banks who say they are entitled to repayment of the loans.

So far the tribe's attorneys seem to have stalled those efforts. They argue that the tribe has sovereign immunity that protects it against lawsuits, even though the tribal council agreed to waive sovereign immunity as a condition of getting the loans before they were made in 2006 and 2007.

Attorneys for the loan servicing firm reply that the tribe has a legal obligation to repay, and that obligation should be enforceable in court.

"If (the tribe's) arguments were the law, any tribal entity would have virtually unfettered discretion as to whether it should have to repay its obligations on a casino loan," attorneys state in one document.

"Any restriction on its discretion, however slight, would relieve the borrower of any duty to pay back the loan. The result would disrupt longstanding business relationships among lenders and tribes; lenders would have no option but to stop making the loans needed for tribal enterprises that benefit their members, and Plaintiff would be wrongfully deprived of its contractual remedies in any forum."

The tribe's attorneys contend that the seeming unfairness of the situation is beside the point.
"Sovereign immunity is a doctrine whose application frequently leads to unfair results," the tribe's attorneys state in a Whatcom County Superior Court document.

In Superior Court, as well as in a federal lawsuit filed in U.S. District Court in Seattle, the tribe's attorneys contend that even though the casino loan agreements were approved by the tribal council, they surrendered too much casino management authority to the lenders. As they see it, that makes the loan agreements equivalent to a "management contract," which many tribes have used when they hire non-Indian firms to help operate their casinos.

But federal law states that all such tribal casino management contracts must get approval from the National Indian Gaming Commission. Since the Nooksack loan agreements never got that federal review, they are not valid and not enforceable, the tribe's attorneys say in court documents.

The tribe also contends that if the lenders had their way, all casino proceeds would have to be used to pay off the loans, leaving no revenue to support tribal programs. That would be contrary to the purpose of tribal casinos as spelled out in federal law: "a means of promoting tribal economic development, self-sufficiency, and strong tribal governments."

The loans at issue include $25.3 million to build and equip the Northwood Casino, and $13.7 million to refurbish the older Nooksack River Casino in Deming and pay off earlier loans.

In the federal lawsuit, the tribe's attorneys maintain that the Northwood loan agreements would have been rejected if the federal gaming commission had taken a look at them. That commission is supposed to act as a trustee protecting tribal interests, and "a trustee, exercising the skill and diligence that a trustee is commonly held to, would not have approved the loan documents ... because from the time the loans were made, Northwood would never have been able to support the monthly debt service to pay off the loans, and the loans were doomed to default."

The tribe's attorneys also have argued that the debts were incurred by two tribally chartered corporations: Nooksack Business Corp. I and Nooksack Business Corp. II, and the banks have no legal claim on the tribe itself or on other tribal revenues. They also complain that the loan servicer, Outsource Services Management, attempted to seize bank accounts without legal notice to the corporations or the tribe itself.

The tribe's legal arguments did not persuade Whatcom County Superior Court Judge Ira Uhrig, who granted a $25.3 million judgment against Nooksack Business Corp. II related to the Northwood casino loans.

In his opinion, Uhrig said evidence showed that the tribal council had approved the waiver of sovereign immunity and the rest of the loan agreements after they had been reviewed and approved by the tribe's attorneys.

Uhrig also noted that on March 29, 2010, then-tribal chairman Narz Cunanan had signed a "confession of judgment" in his dual capacity as president of Nooksack Business Corp. II, acknowledging that the tribal-controlled corporation owed $25.3 million on its Northwood loans.

In an email message, current tribal chairman Bob Kelly said at the time the confession of judgment was signed, Cunanan was serving out the final days of his term of office after Kelly had defeated him in his re-election bid. Kelly said he had been unaware of Cunanan's actions.

The tribe is appealing Uhrig's judgment. Among other things, the tribe challenges Cunanan's authority to admit to the $25.3 million debt.

In a separate case, Whatcom County Superior Court Judge Steven Mura ruled against a tribal motion to dismiss Outsource Services' $13.7 million lawsuit seeking repayment of a Nooksack River Casino loan. Mura rejected the tribe's arguments about sovereign immunity and the need for federal approval of the loan agreement, but he also agreed to forward his ruling on the underlying legal issues to the Court of Appeals for review.

"I believe this issue should be resolved at the appellate level before the parties are made to go to the expense of discovery and trial," Mura said in a letter to both parties, included in public court files.

The tribe also is seeking an injunction in federal court to block the loan servicing firm from taking any action to collect the millions of dollars in unpaid loans to build and equip the Northwood Casino, which opened in 2007.

According to court documents, Marshall Bank and a predecessor, FirstBank, loaned millions to the tribal business corporations beginning in late 2006 with a $15.3 million loan to refurbish the tribe's original Nooksack River Casino in Deming, while paying off older loans. In 2007, the bank provided another $26 million for the construction and furnishing of the tribe's second casino on Northwood Road.

Marshall Bank then sold portions of the loan to other banks but continued to serve as loan servicer.
In August 2009, Marshall Bank filed a lawsuit in Whatcom County Superior Court, alleging that the tribe had stopped making payment on the Northwood loan. In January 2010, the FDIC shut down Marshall Bank, leaving the FDIC in the role of servicer on the tribal loans.

But then, the unnamed banks who had helped finance the deal stepped in and, with FDIC approval, appointed Outsource Services to handle the unpaid debt on their behalf. The identity of those banks is nowhere revealed in court documents.
In March 2010, the tribe announced it had settled the Northwood loan lawsuit from 2009, negotiating new terms with the lender. But court documents indicate that the tribe failed to make required loan payments in January 2012, and that triggered a new round of litigation. http://www.thenewstribune.com/2012/08/05/2240807/nooksack-tribes-unpaid-casino.html

Read more here: http://www.thenewstribune.com/2012/08/05/2240807/nooksack-tribes-unpaid-casino.html#storylink=cpy

Read more here: http://www.thenewstribune.com/2012/08/05/2240807/nooksack-tribes-unpaid-casino.html#storylink=cpy

Monday, July 16, 2012

Taunton casino’s fate tied to landless tribe’s legal battle





Taunton casino’s fate tied to landless tribe’s legal battle
By Mark Arsenault Globe Staff July 16, 2012



Wendy Maeda/globe staff Governor Deval Patrick finalized an agreement with the Mashpee Wampanoag last week about the terms under which a Taunton tribal casino would operate.
In 2010, the Cowlitz Indians, a landless tribe in the Pacific Northwest, celebrated a long-fought victory after finally persuading the federal government to take 152 acres in Washington state into trust as the tribe’s reservation.

The Cowlitz had grand plans for their land: a gambling resort with 3,000 slots and Las Vegas-style table games, a hotel and RV park, restaurants, and retail stores.

But two years later the project is on hold, frozen by federal lawsuits challenging the government’s right to take land into the trust for the tribe. Tribal gambling can take place only on sovereign Indian land, and until the lawsuits are resolved the tribe is technically still landless.

The travails of the Cowlitz are resonating across the country, all the way to Taunton, where another landless tribe, the Mashpee Wampanoag, was last week celebrating its own incremental victory in an effort to build a resort casino.

The fates of the tribes may be related: The Mashpee Wampanoag are following the Cowlitz blueprint for getting trust land.

And final decisions in the lawsuits over the Cowlitz project could determine if the Mashpee ever realize their casino dreams.

“Everyone seems to think we’re the test case,” said Phil Harju, vice chairman and tribal attorney for the Cowlitz.

No answers are expected soon.

Harju hopes the US District Court in Washington, D.C., will rule on the two pending cases by the end of this year or in early 2013. Appeals are a foregone conclusion, no matter which side wins the first round, probably adding at least one more year of delay before the courts have clarified the government’s authority to take land into trust for the Cowlitz — and perhaps the Mashpee.

In recent months, the Mashpee have made important progress toward winning federal approval for their casino plans. The tribe secured options to buy land in Taunton near the junction of routes 24 and 140, where it hopes to build a $500 million resort. Local voters gave their blessing in a nonbinding vote.

And last Wednesday, the tribe finalized an agreement with Governor Deval Patrick about the terms under which a Taunton tribal casino would operate. The Mashpee agreed to give the state 21.5 percent of gambling revenue should they manage to open a casino, in exchange for a prohibition on commercially run gambling resorts in Southeastern Massachusetts, and other considerations.

But the biggest obstacle between the Mashpee tribe and its multimillion-dollar plan is figuring out how to get its land into federal trust.

The Mashpee have been reluctant to detail their strategy, but a source close to the tribe confirms that the Mashpee will follow the same method employed by the Cowlitz. That arduous administrative process took the Cowlitz eight years, according to federal documents, and has so far resulted in no gambling revenue and two federal lawsuits.

Tribes for years have routinely made use of the Department of the Interior’s administrative land-in-trust procedures. Hundreds of tribal casinos have been built on Native American land since passage of the Indian Gaming Regulatory Act in 1988, a federal law that permits tribes to pursue gambling on their reservations as a means of self-support and economic development.

But things became much more difficult for tribes in 2009, when the US Supreme Court limited the power of the government to take land into trust. In a Rhode Island case involving former Governor Donald Carcieri and the Narragansett tribe, the high court ruled that the federal government may take land into trust only for tribes that were “under federal jurisdiction” at the time Congress enacted the Indian Reorganization Act in 1934.

The ruling appeared to prevent recently recognized tribes, such as the Cowlitz, which earned federal recognition in 2002, and the Mashpee, recognized in 2007, from getting eligible land for gambling. Tribes have lobbied lawmakers to fix the problem; the gridlocked Congress is not expected to act anytime soon.

In the meantime, the court ruling left enough wiggle room for the Department of the Interior to take a generous interpretation of what it meant for a tribe to be “under federal jurisdiction” in 1934.

The Cowlitz got around the Carcieri decision by arguing they met the Supreme Court’s standard, due to the tribe’s historical engagement with the US government. The Cowlitz presented evidence of a lengthy relationship with US authorities, dating back to treaty negotiations in 1855, Harju said.

Evidence supplied by the tribe, summarized in the Department of the Interior’s final report granting trust land to the Cowlitz, includes documented attempts by the federal government to consolidate the Cowlitz with another tribe in the 1860s; the government’s identification of Cowlitz chiefs in the 1870s; and references in the 1920s to the federal government’s representing Cowlitz tribal interests in asserting fishing rights. A 1937 government report mentioned 500 “unattached Indians largely of
Cowlitz tribe” under the supervision of the Office of Indian Affairs.

“There is an overwhelming record that we were under federal jurisdiction,” Harju said.
The Department of the Interior agreed, approving the tribe’s land-in-trust application in December 2010.

Soon after, opponents of the tribal casino sued the federal government to overturn the decision to grant trust land to the tribe. The legal challenges are based in large part on the 2009 Supreme Court ruling in the Carcieri case.

The Mashpee Wampanoag hope to follow the trail blazed by the Cowlitz around the Carcieri decision, by proving the tribe had an ongoing relationship with the federal government into the 1930s, based on evidence gathered by Mashpee tribal historians. The tribe declines to release its evidence.

The Patrick administration, which has pledged to actively support the tribe’s land-in-trust application, has not reviewed the tribe’s evidence that it qualifies under the Supreme Court’s standard.

James P. Lynch, a Connecticut historical research consultant who has studied the Mashpee’s claims for a rival tribe, the Pocasset Wampanoag, said the Mashpee cannot qualify because they, historically, were under state jurisdiction.



Edward Gray Fox Page, chief of the Pocasset Wampanoags, says his tribe has no interest in building a casino on its land in Fall River and Freetown.

Daryl Black Eagle Jamieson, vice chairman of the Pocasset Tribal Council,… (George Rizer for the Boston Globe)

There is a chance the Cowlitz dispute could reach the Supreme Court. That would add to the delay, but another high court review would be valuable, Lynch said: “It would give the court a chance to say what it meant by ‘under federal jurisdiction.’ ”


http://bostonglobe.com/metro/2012/07/15/fate-mashpee-wampanoag-tribal-casino-tied-lawsuits-over-tribal-project-washington-state/3jDKM51UoamNy4xlKnXqnI/story.html

Sunday, July 8, 2012

Only a handful of off-reservation casinos have been approved




Only a handful of off-reservation casinos have been approved

Posted: Saturday, July 7, 2012                

Indian casinos in the U.S.

Indian casinos in the U.S.


The 1988 law passed by Congress has always allowed off-reservation casinos. But they’re extremely rare, with only a handful approved by the federal government.
Backers say that dropping the “commutable distance standard” adopted by the Bush administration will lead to more off-reservation casinos and help tribes create more jobs. That, they say, is just as President Ronald Reagan and Congress envisioned when they passed the law allowing tribes to get into the big leagues of gambling.
But even some tribal officials are leery, worried that off-reservation casinos stray far from the original intent of the law, which they say clearly was aimed at keeping the casinos on reservation land.

“I think Indian gaming had good intentions — it was intended to help tribes, but there are ways that I think it can be used to get away from what its intentions were. ... We’ve been worried about off-reservation gaming,” said Chris Mercier, a tribal council member for the Confederated Tribes of Grand Ronde in Oregon. The tribe has gone to court to try to block its neighboring tribe, the once landless Cowlitz Indian Tribe of Washington state, from opening a casino on a 152-acre site it bought near La Center, Wash.

Because it still takes years to plow through the bureaucracy to actually open a casino, it’s far too soon to know whether the tribes will experience large-scale success in moving beyond their borders.
But the early signs are telling.

In California, gambling opponents say the new approach already has resulted in a flood of new applications for tribes to acquire more property. The Bureau of Indian Affairs would not disclose how many applications it has received in other states or across the country and has yet to respond to a formal request for the data, filed in May by McClatchy Newspapers under the federal Freedom of Information Act.


http://www.heraldandnews.com/article_9d0ca1f2-c8c5-11e1-bf2b-0019bb2963f4.html

Cowlitz Tribe awaits trial on opposition to casino land acquisition

More Carcieri creep .....




Cowlitz Tribe awaits trial on opposition to casino land acquisition

Friday, July 6, 2012

The Cowlitz Tribe of Washington waited 26 years for federal recognition and 10 more for approval of its land-into-trust application.

The tribe has to wait even longer to open a casino because the record of decision by the Bureau of Indian Affairs is being challenged in court. At issue is whether the Cowlitz were "under federal jurisdiction" in 1934 even though the tribe didn't gain federal status until 2000.

The plaintiffs include local governments and local groups. But the Confederated Tribes of Grand Ronde in Oregon, whose federal recognition was restored to Congress in 1983, are also fighting the Cowlitz Casino Resort.

"As the Supreme Court made clear in Carcieri v. Salazar, the term 'now under federal jurisdiction' refers to tribes that were 'under federal jurisdiction' when the statute was enacted in 1934," the Grand Ronde Tribes wrote in a brief, quoting from the U.S. Supreme Court decision in Carcieri v. Salazar.

"But the [Interior] Department has consistently taken the position that the Cowlitz did not even exist as a tribal entity in 1934, and the Secretary conceded below that the Cowlitz were terminated throughout the twentieth century," the brief continued.

A trial is expected in federal court in Washington, D.C., later this year, McClatchy Newspapers reported. Appeals could tie up the process for a couple more years.

Get the Story:
Even with relaxed casino rules, tribes could face many pitfalls (McClatchy Newspapers 7/5)

Related Stories:
Cowlitz Tribe negotiating gaming agreement with former rival (9/14)

http://64.38.12.138/IndianGaming/2012/025134.asp


Thursday, March 29, 2012

Budget cuts affecting addiction treatment programs

Budget cuts affecting addiction treatment programs
Mar 28, 2012
Bryant Maddrick

RICHLAND, Wash. -- Washington state lawmakers are still in a special session working to balance the budget. Cuts to vital programs will be made.

Recovery Pointe is an addiction treatment center in Richland. Counselors treat people dealing with drug, alcohol, and gambling.

The governor proposed cutting more than $300 million dollars from Social and Human Services which help treatment programs. If that money is slashed, places like Recovery Pointe will be left with fewer options to help people.

"When the reductions hit our program, and initially they wiped out the funding. We didn't have any funding for about 2 months, and then all the funding was restored," explains counselor Jim Mason.

Mason adds, their funding was cut in half leaving them to help only half. Some of those people relapsed back into drugs or gambling.

Unlike drug and alcohol treatment, the facility's gambling program is paid for with taxes collected from the state's gambling commission. But less money collected, means less help.

Sunday, March 18, 2012

Opposition to Spo-Vegas & the Off Reservation Proposal

For additional information about the opposition to Spo-Vegas and the Off Reservation Slot Barn referenced below, click here:

Citizens Against Casino Expansion

EIS pushes Spokane Tribe casino forward
By: NICHOLAS K. GERANIOS Associated Press

AIRWAY HEIGHTS, Wash. (AP) A big casino that the Spokane Tribe of Indians is proposing has cleared a major regulatory hurdle, but the project is drawing bitter opposition from a rival tribe and from some area business and political leaders.

The Bureau of Indian Affairs recently issued a draft environmental impact statement that allows the Spokane Tribe's proposal to continue moving forward. The proposal is opposed by the Kalispel Tribe of Indians, who fear their nearby Northern Quest Casino will lose business to the new competitor.

Area politicians and business leaders also worry about the new casino's impact on nearby Fairchild Air Force Base, and on the Spokane community.

"We don't want to become Spo-Vegas," said Irv Zakheim, a business leader who co-founded Citizens Against Casino Expansion. "It would expand gambling and the problems that come with it, threaten Fairchild Air Force Base, harm our local economy."

The draft environmental impact statement is now the subject of a 45-day public comment period and what is likely to be a contentious public hearing on March 26.

The issue goes back more than a decade, when the Kalispel Tribe won rare federal approval to build an off-reservation casino because its tiny reservation in northeastern Washington was unsuited to such a big project.

The glitzy Northern Quest, located in this suburb west of Spokane, has been a huge moneymaker for the tiny tribe.

The Spokane Tribe, which claims the Spokane area as an ancestral homeland, wants to build its own resort complex just a few miles from the Northern Quest.

But the Spokanes also need special permission for the off-reservation casino, and the environmental statement is a first step in that complicated process.

Spokane Tribe chairman Greg Abrahamson said he believes a second casino in the area will build business for both tribes.

A key finding of the environmental review is that the proposed casino will not impact Fairchild Air Force Base, one of Eastern Washington's largest employers.

Some Spokane business leaders are not so sure. They worry that a crowded casino under the flight line of the air tanker base might prompt the military to close Fairchild in the future.

"We remain committed to protecting Fairchild Air Force Base from encroachment," said Rich Hadley of Greater Spokane Inc., the region's economic development agency, which opposes the Spokane Tribe's project.

The base has some 5,700 employees and is worth $793 million a year to the Spokane economy, the business group said. The Spokane Tribe is proposing to spend $400 million for a casino and resort complex which they contend will provide 2,800 jobs when fully completed. Opponents dispute the employment projections.

Abrahamson said the Spokane tribe has worked closely with military officials in Washington, D.C., to make sure their proposal does not hurt the base. And military officials have not publicly stated any concerns about the proposed casino.

The tribe's project includes 98,000 square feet of gambling area with 2,500 slot machines, a 300-room hotel, several restaurants, parking garage, retail space, a tribal cultural center and tribal police and fire station.

Opponents take issue with the environmental review.

"It doesn't speak to how this casino would threaten the character of our community and it doesn't examine the full costs that the Spokane Tribe could transfer to local taxpayers," Zakheim said.

Indian gambling is a major business in Washington. A recent study, Casino City's Indian Gaming Industry Report, found that Washington's 32 tribal casinos ranked fifth in gaming revenue in 2010 with $2.03 billion, up 7.5 percent from the year before. The state was third in the number of gaming machines at tribal casinos, with 27,358, behind only California and Oklahoma.

Critics contend approving an off-reservation casino strictly on the grounds of generating higher revenues for a tribe could lead to an explosion of Indian gambling sites near large cities.

The Obama administration in 2009 launched a review of federal rules that dramatically limited off-reservation gambling. Only five off-reservation casinos, including the Northern Quest, have been approved in more than 20 years.

Few tribes have benefited from gaming as much as the Kalispels, a band with 416 members and a reservation that is just 8 miles long and 1 mile wide. The reservation sits mostly on a floodplain near Usk, 50 miles north of Spokane.

With few options for generating money, the Kalispels in the early 1990s bought land in Airway Heights and launched a seven-year effort to get it designated as part of their reservation to allow gambling. The effort required the approval of both the federal government and former Washington Gov. Gary Locke.

The Northern Quest Casino, near Spokane's airport, opened in 2000 and has been continually expanded since.

It is the Kalispel's only casino, but the revenues allow the tribe to provide clean drinking water, medical and dental care, a wellness center, fire and ambulance service, higher education scholarships and jobs in various fields for every member who wants one. The casino employs about 2,000 people.

By contrast, gambling has not been so good to the Spokane Tribe, which has 2,655 members and a much larger reservation about 30 miles northwest of Spokane. The Spokanes at one time operated five modest rural casinos on their reservation, but only two are left.

The opening of the Kalispel casino cut revenues at the Spokane Tribe's venues by 80 percent, Abrahamson said. The revenue drop forced the Spokanes to reduce their social programs, aid to elders and youth and education programs and unemployment among the Spokanes is around 50 percent, he said.