Federal gaming regulators have told Louisiana‘s biggest tribal casino to suspend a former executive. They found he did not report suspected financial wrongdoing during audits and talks about financing.
Federal Regulators Suspend Ex-Coushatta Casino Executive Over Fraud Disclosure Failures
The National Indian Gaming Commission (NIGC) told the Coushatta Tribal Gaming Commission to stop Todd Stewart‘s gaming license. Stewart used to be the general manager of the Coushatta Casino Resort in Kinder and now works as a consultant. In a letter dated September 8, regulators said Stewart did not share information about possible fraud with casino credit cards.
This happened when auditors looked at the casino’s financial statements for 2023, and when the casino got a $150 million loan to build a new hotel, as reported by the Louisiana Illuminator.
The casino order comes as broader probes into casino leadership unfold. Jonathan Cernek, who led the tribe from 2021 until he stepped down in August 2024, faces an ongoing FBI investigation. Federal representatives are looking into claims that Cernek spent up to $350,000 of casino money on personal stuff. State police and the NIGC are helping out with this inquiry.
People in the know say federal agents have talked to many current and former council members and found several people who know how the tribe managed its money. These claims cover the same time when the casino started building its $150 million hotel add-on, which aimed to boost tourism and jobs in the area.
Expansion Plans at Risk as Coushatta Casino Confronts Oversight Failures
The September order against Stewart pointed out that he could not verify the number of credit cards tied to the casino’s accounts or who could use them. This uncertainty troubled regulators, who saw it as a sign of weak internal controls. A separate outside review, made public earlier this year, found over $100,000 in unexplained costs in just two months of 2024.
Shawna Castellano, who heads the NIGC‘s regional office, wrote that not reporting suspected fraud hurts the credibility of tribal gaming and makes investors less confident.
The casino gives jobs to about 2,600 people. Some watchers say the regulatory steps might slow down the expansion plans and shake local trust.
Stewart and current tribal officials have stayed quiet about the federal order. A tribal spokesperson earlier said they got rid of council credit cards and brought in new expense rules, but did not give any updates on the latest findings.The Coushatta Tribal Gaming Commission has a month and a half to hold a hearing about Stewart’s license and let federal regulators know what they decide.