FBI Investigation Links Former Tribal Leaders to Tribal Gaming Issues

The former chair of the Coushatta Tribe is reportedly under investigation
The FBI and Louisiana State Police believe tribal officials stole money from the tribe
Coushatta Casino Resort is northeast of Lake Charles

The FBI, Louisiana State Police, and the National Indian Gaming Commission are currently investigating allegations that former leaders of the Coushatta Tribe have embezzled hundreds of thousands of dollars from their community, directly impacting the operations of their tribal gaming enterprise. This probe coincides with the tribe’s ambitious $150 million expansion and renovation project at the Coushatta Casino Resort in Kinder, bringing scrutiny to the financial management of tribal gaming operations.

In March 2024, Casino.org reported that the Coushatta Tribe had launched a $150 million investment to add another 204 hotel rooms to the remote tribal resort. Existing facilities, including the casino and around 800 hotel rooms, were also set to receive cosmetic upgrades.

Currently, the Coushatta Casino Resort stands as Louisiana’s largest casino, boasting nearly 2,000 slot machines, 55 live-dealer table games, a bingo room, off-track pari-mutuel wagering, and a sportsbook. Located approximately 40 minutes northeast of Lake Charles, the tribal casino relies heavily on Texas customers for its operations.

Native News Online, a media outlet focusing on Indigenous American affairs, reported that Jonathan Cernek, the former Coushatta Tribe chairman who abruptly resigned in August 2024, is now under investigation for allegedly misusing casino credit cards for personal benefit.

Before taking the reins as tribal chair in 2021, Cernek served for eight years on the Coushatta Tribal Council.

Widespread Corruption Believed

Although federal and state authorities have not commented publicly on the ongoing investigation, an unnamed source conveyed to Native News Online that Cernek was not acting alone. Several other former Tribal Council members are reportedly also under scrutiny.

The insider revealed that Cernek and his associates allegedly swindled at least $350,000 from the tribe using two Coushatta Casino Resort credit cards. Notably, the charges, as claimed, were unrelated to the casino’s operational costs or expansion efforts.

Established in 1995, the Coushatta Casino Resort provides employment for about 2,600 individuals and plays a vital role in the economic landscape of the Kinder community. In addition to the casino and hotel, the resort features eight restaurants, 20,000 square feet of meeting space, a spacious outdoor pool with a lazy river, a concert venue that accommodates 4,000 guests, a 100-spot RV park, and an 18-hole golf course.

Under the tribe’s Class III gaming compact with the State of Louisiana, they are mandated to make annual payments amounting to $7 million to the local governments of Allen Parish and the Town of Elton in return for their rights to operate slot machines and table games.

Tribal Corruption

This scandal surrounding the Coushatta Tribe is just the latest incident shaking the tribal gaming landscape. Three years ago, former Chair of the Mashpee Wampanoag Tribe, Cedric Cromwell, was convicted on bribery and extortion charges related to his tribe’s casino plans and sentenced to three years in federal prison. His predecessor, Glenn Marshall, also faced federal prison time for embezzlement and campaign finance violations.

In Oklahoma, John Berrey, the former Quapaw Nation Chair, continues to contest allegations of embezzling at least $7 million from the tribe during his lengthy 18-year tenure leading the tribe and its associated casinos.

Summary

The investigation into the former leaders of the Coushatta Tribe highlights serious allegations of corruption and financial misconduct that take place in the tribal gaming industry. As the Coushatta Casino Resort plans significant expansion, these revelations serve as a reminder of the need for transparency and accountability in the management of tribal resources.