NIGC Calls for Suspension of Former Coushatta Casino GM Amid Fraud Concerns
Federal Regulators Target Former Coushatta Casino Executive
Federal authorities have directed a gambling facility in Louisiana to sever all business connections with a former senior executive, now working as a casino consultant. This executive failed to report suspected fraud issues to auditors and potential investors, prompting official intervention.
National Indian Gaming Commission’s Demand
The National Indian Gaming Commission (NIGC) requested the Coushatta Tribal Gaming Commission to suspend the license of Todd Stewart, the ex-general manager of Coushatta Casino Resort located in Kinder, Louisiana.
Unexplained $100,000 Credit Card Charges
On September 8, the NIGC issued a formal three-page letter to the tribe. This letter highlights a 2024 complaint which accused former tribal chairman Johnathan Cernek of misappropriating gaming revenue, allegations that were corroborated by an audit later on.
Another independent audit by the Louisiana Legislative Auditor revealed significant shortcomings in the tribe’s financial oversight. Specifically, it found that leadership neglected proper tracking of credit card use and did not sufficiently account for purchases exceeding $100,000 over a two-month period.
According to credible sources, Cernek and possible collaborators exploited credit cards to embezzle at least $350,000 from tribal funds. This scandal prompted Cernek to resign in August 2024. He was temporarily replaced by tribal council member Crystal Williams, followed by the official induction of David Sickey as the new chairperson in June.
During a June interview, Stewart admitted he failed to disclose suspected fraudulent activities to external auditors during the 2023 fiscal year’s financial audit.
The $150 Million Construction Loan Issue
Compounding the problem, Stewart also did not inform the prospective lender about these financial irregularities while negotiating a $150 million loan to fund a new hotel construction at the casino. He withheld this information until the loan was secured in March 2024.
The NIGC letter, addressed to Coushatta Tribal Gaming Commission chairwoman Pam Bass, also noted Stewart’s uncertainty about the exact number of credit cards linked to the casino’s bank accounts and the individuals authorized to use them.
In response, the tribal council has discontinued the use of those credit cards and introduced a formal policy governing expense reporting and reimbursements.
Interestingly, a few hours after the audit findings were publicly shared on the Louisiana Legislative Auditor’s website, the report was taken down. Officials explained they were reconsidering whether publishing the report was appropriate, with legal counsel clarifying that tribal entities may opt out of public disclosures of such audits.
Next Steps: License Suspension Hearing
The federal regulators’ letter states that the Coushatta Tribal Gaming Commission must organize a hearing to consider revoking Stewart’s license. The regulators must receive notification of this hearing within 45 days.
