Investigation Uncovers Financial Mismanagement at Louisiana Tribal Casino
Federal Agencies Investigate Casino Fund Misuse
Federal authorities, including the FBI and the Bureau of Indian Affairs, have intensified their probe into suspected financial misconduct at the Coushatta Casino Resort located in Kinder, Louisiana. Information from insiders and official records indicates that investigators have interviewed former staff regarding potential misuse of casino finances by past tribal officials.
Allegations Surround Former Tribal Chairman
The investigation is focused on Jonathan Cernek, the former chairman of the Coushatta Tribe, who is accused of utilizing a casino credit card to purchase home furnishings and other materials for personal use. Todd Stewart, who previously served as the general manager and chief financial officer of the casino, raised these concerns to the tribal leadership last year. Stewart was alarmed that casino profits intended for the tribal community might have been diverted for private benefit, as reported by local media.
Internal Reports Highlight Irregular Transactions
In an internal report submitted to the Coushatta Tribal Council in August 2024, Stewart disclosed invoices for items, including bathroom fixtures, delivered to the Cernek family residence. After questioning these expenditures, Stewart faced threats concerning his employment from the former chairman. Stewart later confirmed his commitment to integrity and honesty in his role.
Further Testimonies and Agency Interviews
Paula Corliss, who managed purchasing and oversaw casino procurement accounts, confirmed during interviews with the FBI and Bureau of Indian Affairs that the credit card was occasionally used for purchases sent to the Cernek home, though she mentioned that other finance department officials were aware of these transactions.
Regulatory Actions and License Suspension
In September, the National Indian Gaming Commission (NIGC) suspended Stewart’s gaming license, accusing him of failing to report suspicious credit card activity during his tenure overseeing casino operations. The NIGC instructed the Coushatta Tribal Gaming Commission to conduct a formal hearing to revoke Stewart’s license.
Audit Findings Reveal Significant Financial Discrepancies
Subsequent audits uncovered discrepancies in casino spending. A review by the Louisiana Legislative Auditor found missing receipts for over $100,000 worth of purchases within just two months in 2024. A previous audit from 2023 identified hundreds of undocumented transactions amounting to over $111,000, raising serious concerns about financial accountability.
Tribal Leadership Remains Silent Amidst Member Concerns
Current tribal officials have not publicly addressed these allegations, prompting frustration among tribe members who feel there is a lack of transparency and accountability. Community voices express a desire for greater openness regarding the management of casino funds.
Calls for Stronger Financial Governance
Jonas John, the former heritage director and a prior critic of Cernek’s budgeting decisions, noted that financial oversight has long been an issue within the tribe. He advocates for the establishment of stricter governance measures to protect tribal resources from future misuse.
Recent Measures to Enhance Financial Controls
Cernek resigned from his position as chairman in August 2024, just before Stewart submitted his report to the council. Since then, the casino has revoked purchasing credit cards and implemented stricter expense management policies, according to a spokesperson.
