News Summary
A federal investigation led by the FBI is examining financial misconduct at the Coushatta Casino Resort, focusing on former Tribal Chairman Jonathan Cernek. Allegations include misuse of casino funds for personal home improvements. Internal reports have raised concerns over financial governance, leading to the suspension of the casino’s CFO Todd Stewart’s gaming license. The tribe’s leadership faces growing scrutiny as community members demand accountability. The Coushatta Tribe has implemented changes to restore trust after these revelations.
Kinder, Louisiana – A federal investigation is underway involving the Coushatta Casino Resort, led by the FBI and the Bureau of Indian Affairs. The inquiry is focused on Jonathan Cernek, the former chairman of the Coushatta Tribe, who faces allegations of misusing casino business funds for personal expenses, particularly home improvements. This situation has raised serious questions about financial governance within the casino and the broader implications for tribal leadership and accountability.
The investigation stems from reports that Cernek utilized a casino credit card for personal purchases, contradicting its intended purpose, which was to benefit tribal members. Todd Stewart, the casino’s former general manager and CFO, raised alarms about financial inconsistencies that he reported to the Coushatta Tribal Council. In a detailed internal report dated August 14, 2024, Stewart documented various transactions related to home improvements made for Cernek, including the purchase of bathroom fixtures.
After confronting Cernek regarding the credit card misuse, reports indicate that Stewart encountered job-related threats. Disturbingly, Paula Corliss, a former purchasing manager at the casino, backed up Stewart’s allegations by noting that some of the disputed purchases were billed to Cernek’s residence. Corliss stated that the credit card was primarily designed for community goodwill initiatives, highlighting a clear deviation from its intended use.
In May 2024, the FBI interviewed Corliss as part of the investigation into the financial activities of the Coushatta Casino. This probe follows a series of audits, with one audit from 2023 revealing 338 undocumented transactions amounting to over $111,000, and recent findings from 2024 showing more than $100,000 in untracked purchases within just two months.
As a consequence of these findings, the National Indian Gaming Commission (NIGC) has suspended Todd Stewart’s gaming license for failing to report the suspected misappropriations. Furthermore, the Coushatta Tribal Gaming Commission has been directed by the NIGC to conduct a hearing to consider the revocation of Stewart’s gaming license. These actions add to the growing scrutiny on the casino’s financial practices.
Current tribal officials, including Chairman David Sickey and other council members, have notably refrained from publicly addressing the allegations of misuse of funds. This silence has resulted in significant frustration within the community, prompting calls for greater accountability and transparency from tribal leadership regarding casino finances. Jonas John, a former heritage director of the tribe, criticized the evident lack of governance surrounding these financial matters.
Shortly before these allegations surfaced, Cernek resigned from his position as tribal chairman on August 9, 2024, just ahead of Stewart submitting his detailed complaints to the council. In response to the situation, the Coushatta Tribe has since eliminated its purchasing credit cards and instituted stricter expense reporting policies to restore trust and accountability.
The Coushatta Tribe operates as a federally recognized sovereign nation with a membership exceeding 900, functioning under federal and state oversight in accordance with a tribal-state compact. Any suspected violations regarding the casino’s operations are subject to investigation by state police, and regular audits are mandated to ensure accountability for up to six years.
Many tribal members have voiced concerns over the lack of documentation and accountability evident in recent audits, advocating for substantive changes in governance to enhance oversight of financial operations. There is a fostering sense that without these changes, similar issues could persist in the future, continuing to undermine the trust of tribal members in their leadership and the operations of Coushatta Casino Resort.
Deeper Dive: News & Info About This Topic
- La Illuminator: Coushatta Casino Investigation
- NewsNet5: Investigation of Financial Mismanagement
- Bluebonnet News: Alabama Coushatta Tribe Announces New Casino Resort
- KSST Radio: Alabama Coushatta Tribe to Build Casino
- Wikipedia: Coushatta Indian Reservation
- Encyclopedia Britannica: Federal Indian Gaming Law
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