SEARCH NEWS:

 

Conflict of Interest Alleged in Tribal Deal with South African Casino Operator

"Former Mohegan treasurer Carlisle M. Fowler says he believes the deals gave unwarranted millions to Trading Cove partners, a group headed by casino impresario Sol Kerzner, the creator of South Africa's Sun City resort. Trading Cove and the tribe are already under criticism for failing to disclose the full extent of their financial relationship to federal regulators.

"…. He said he had long been suspicious of the close ties between tribal leaders and Trading Cove, but was convinced he couldn't do anything to stop their deal-making, much of which was conducted in private.

"…One of the former chairmen, Ralph W. Sturges, began drawing a considerable income from the South African group long before the casino opened, during a time when Trading Cove was gaining many of the rights over the casino, Fowler said.

"The other former tribal chairman, Roland Harris, was originally paid as tribal planner, then moved up to the chairmen's pay when he replaced Sturges in 1995, about a year before the casino opened. Meanwhile, Harris received $883,000 from Trading Cove for surveying work done by Harris's company at the casino grounds, according to financial disclosure records.

"The large profits taken by non-Indian investors in the hugely lucrative Mohegan Sun have come under sharp scrutiny in recent weeks.

"…Fowler said Sturges negotiated that contract with Len Wolman, a South African native and Trading Cove partner who first began dealing with Sturges in late 1992, after the newly opened Foxwoods Casino showed how lucrative Indian gaming could be…"

< Gaming News