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Senator McCain Grills Officials on Mohegan Deal

"In his questioning, McCain made clear his concern that non-Indian investors at the Mohegan Sun casino dodged federal law to get hundreds of millions of dollars in extra profits that rightfully belonged to the tribe.

"'Do you find that disturbing? Outrageous, even?' McCain asked Montie Deer, the chairman of the National Indian Gaming Commission, a panel established to enforce a strict limit on casino profits for non-Indian investors.

"…Later, under questioning from Senator Daniel Inouye, Deer acknowledged legal 'loopholes' in the Indian Gaming Regulatory Act of 1988, which have been exploited by 'innovative' lawyers working on behalf of investors.

"'So it could be that tribes are paying more [to investors] than they should?' asked Inouye, the chairman of the Senate Indian Affairs Committee.

"'Under the act, yes,' Deer answered.

"…Deer answered that he hoped tribes would have lawyers astute enough to avoid such pitfalls. It was up to Congress to close the loopholes, Deer said, possibly through an amendment to the law.

"McCain pinpointed the Mohegan tribe's relationship with a group of investors known as Trading Cove Associates, a syndicate headed by international gambling mogul Sol Kerzner, creator of Sun City in South Africa.

"…McCain then pressed for details concerning the Clinton administration's recognition of the Nipmucs and two other tribes just before the president left office.

…Michael Anderson, while serving as acting head of the Bureau of Indian Affairs on Clinton's last day, overruled staff findings and recognized the Duwarmish tribe of Washington state. He also gave preliminary recognition to one band of the Nipmucs of central Massachusetts.

"The Nipmucs have signed a contract with an investor to build a casino, possibly along the Massachusetts-Connecticut border…"

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