A National Indian Gaming Commission investigation found that Brian Foster, former director of gaming for the Cheyenne and Arapaho Tribes and former chairman of the Oklahoma Indian Gaming Association, participated in a scheme to skim gaming revenues and collect huge lease payments from the Lucky Star Casino in Clinton, Oklahoma. According to the settlement agreement, Foster negotiated a deal in 2012 to lease the
$50,000 a month and more than $1.2 million over 18 months to lease the two-acre parcel–nearly 10 times the land’s fair market value.
Foster’s employment was terminated, as well as the casino general manager, once tribal officials discovered the lucrative contract, officials said. The tribes have agreed to pay a $100,000 fine to the NIGC if they do not carry out the terms of the settlement, which include providing more gaming-employee training.
In an email included in the settlement agreement, Foster allegedly spelled out the scheme to purchase the parking lot plus long-term plans for the land that would “keep the National Indian Gaming Commission out of the picture I think even though it is a non-gaming contract but payments would be made from the gaming facility.”
Records show Clinton Land Holdings LLC, managed by Thomas Fox, bought the parking lot in 2012; Foster used personal funds for a $150,000 down payment. Fox formerly was president and vice president of Minnesota-based Southwest Casino Corporation which previously managed Cheyenne and Arapaho casinos. Until recently, Fox worked for the Red Rock-based Otoe-Missouria tribes’ gaming operations, but a spokesman said Fox is no longer employed with the tribe.
NIGC Chairman Jonodev O. Chaudhuri said the parking lot contract was in “clear violation” of federal Indian gaming laws meant to protect gaming as a means of generating revenue for Indian tribes. “The tribes were instrumental in identifying the misuse of the gaming revenue that is a clear violation of IGRA. They have provided full cooperation to the NIGC throughout the investigation of this matter,” he said.
Cheyenne and Arapaho Governor Eddie Hamilton said investigation is ongoing and the tribes will take legal action “against those who have wronged the tribes in the past. As we move forward, we will look to hold those people accountable who have squandered away our tribal resources for their own personal gain. My administration is dedicated to continuing these efforts. In doing so, we hope to strengthen our tribes and provide a better future for our tribal members.”
