Man Accused in Casino Investment Scam

ARIZONA – As reported by the Arizona Republic: "State regulators have charged a Tucson man with securities fraud, stemming from suspected efforts to sell tribal water rights he did not hold and participation in the management of a non-existent Indian casino.

"The Arizona Corporation Commission's Securities Division believes that at least $136,000 has been invested in the schemes so far.

"The division recently issued a temporary cease-and-desist order against 42-year-old John S. Mendibles of Tucson and his defunct corporation, MGN Enterprises Ltd.

"…The state alleges Mendibles told investors that he had been granted rights by the San Juan Southern Paiute Tribe to develop a casino near Flagstaff and that he would receive a management fee of 35 percent of net revenues, or about $13.3 million an year.

"…Mendibles and MGN also are alleged to have told investors they have a joint-venture agreement with the Hualapai and Havasupai tribes, allowing them to negotiate the sale of the tribes' water rights. Mendibles and MGN have no such agreement with the tribes, according to the state…"

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