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Washington Tribal Casino Under Investigation

"The National Indian Gaming Commission has the authority to fine and close Indian casinos, but it is too early to say whether the investigation will lead to action against the tribe.

"…The commission has been investigating the casino at least since December, when the tribal council suspended some of the casino managers. Those managers are included in the federal investigation.

"…Randy Sitton, region chief of the National Indian Gaming Commission in Portland, Ore., detailed his investigation of the casino in a Feb. 28 letter to the Nooksack Tribal Council.

"…Sitton's letter reported these concerns:

"*`Questionable business practices' of [former casino general manager Kevin] Hogan and the chief financial officer, including what Sitton called a short-term, unsecured $150,000 loan to Blaine-based Exports, Inc.

"Ken Kellar, owner of Exports Inc., loaned the tribe money for the casino's $5.5 million construction. The tribe still owes him about $3.8 million, he said.

"*Bonuses paid to casino executives, tribal officials, the gaming commission chief and the director of the tribal gaming authority.

"In Sitton's letter, he says the tribal council has not produced a resolution or minutes of a meeting where they approved the bonuses. Without council approval, the bonuses `may constitute a misuse of gaming revenues' under federal law.

"*Gambling by tribal gaming commissioners and tribal officials.

"According to Sitton's letter, commission investigators confirmed that the tribe's chief gaming commissioner and tribal council members who were acting as gaming commissioners `gambled extensively' at the Nooksack River Casino - a violation of the tribe's ethics code…"

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