Federal regulators have required a Louisiana gambling venue to cut all ties with a former executive, currently a casino consultant, who didn’t sound the alarm on auditors and potential investors regarding possible fraud allegations.
The National Indian Gaming Commission asked the Coushatta Tribal Gaming Commission to suspend Todd Stewart’s license, the ex-general manager of the Coushatta Casino Resort in Kinder.
Suspicious $100K Credit Card Purchases
The agency’s directive was released on September 8 in a three-page letter addressing the tribe, as per documents obtained by the Illuminator.
In the letter, regional director Shawna Castellano spoke about a complaint received in 2024 that accused former tribal chairman Johnathan Cernek of misusing gaming revenue. The allegations were later confirmed by an audit.
The Louisiana Legislative Auditor also published its own report from a separate independent audit that showed the tribe’s leadership failed to keep track of credit card use and receipts to prove purchases of over $100,000 spanning over two months.
According to Native News Online, Cernek and possibly accomplices made use of the credit cards to swindle a minimum of $350,000.
This led to Cernek’s resignation in August 2024, with tribal council member Crystal Williams appointed as acting chairperson, followed by David Sickey’s official swearing-in on June 13.
As per the same letter, during the June interview with Stewart, it was revealed that he failed to “disclose suspected fraud to the external auditors during the [fiscal year] 2023 annual audit of the financial statements.”
The $150 Million Loan
Moreover, he chose not to communicate the problem to “the potential lender of a $150 million construction loan” that the casino was working on obtaining until the money, directed toward a new hotel in March 2024, was in the bag and the loan secured.
The letter that reached Coushatta Tribal Gaming Commission chairwoman Pam Bass also claims that Stewart was not certain regarding the number of credit cards that were tied to the casino’s bank accounts and “uncertain” of who was using them.
The tribal council has since eliminated the credit cards and implemented a formal expense reporting and reimbursement policy. However, a few hours after the Illuminator published the audit’s results on the Legislative Auditor’s platform, the council’s report was taken down from the Legislative Auditor’s official website.
Officials explained that they were pondering whether the state posting it was a good idea to begin with, with an attorney with the auditor’s office stating that tribes are allowed to skip having their reports published.
As per the federal regulators’ letter, the Coushatta Tribal Gaming Commission is required to issue a hearing notice for Stewart’s possible license revocation. Regulators must be notified within 45 days.