Press Release 73-08-2007

For Immediate Release 
Contact: Shawn Pensoneau ~ (202) 632-7003

 

NIGC Settles Action Against Marcus Dunn and Companies

for $10 Million and Lifetime Ban from Indian Gaming 

 

Washington DC, August 21, 2007 — The National Indian Gaming Commission (NIGC) has entered into a settlement agreement with Marcus E. Dunn and several of Mr. Dunn’s companies to resolve an enforcement action for managing the tribal gaming facility of the Quapaw Tribe in Miami, Oklahoma without an approved management contract. The settlement agreement calls for the management companies to pay a civil fine of $10 million to the U.S. Treasury. It also includes a personal civil fine against Mr. Dunn of $50,000 and an agreement by Mr. Dunn to observe a lifetime ban from any involvement in the Indian gaming industry. 

As admitted by Mr. Dunn in the settlement agreement, Mr. Dunn owned and controlled several affiliated companies that managed the Quapaw Tribe’s Indian gaming facility without a management contract approved by the NIGC as required by the Indian Gaming Regulatory Act (IGRA) and NIGC regulations. The management companies which are now responsible for the payment of a

$10 million civil fine are Oklahoma Management Enterprises Inc. Native American Enterprises & Resource Management, Inc. and Wolf Tree Development Company, Inc. 

From January 2001 through April 2005, Mr. Dunn’s companies managed the Quapaw Tribe’s Casino. The Quapaw Tribe terminated its relationship with Mr. Dunn and revoked his tribal gaming license and entered into a stipulated notice of violation and agreed to a $50,000 civil fine in April of 2005.

IGRA allows third-party management of Indian gaming operations, but only under a management contract that has been approved by the NIGC Chairman. Management contract approval allows the NIGC to fulfill its congressionally mandated goals of shielding tribes from organized crime and other corrupting influences and ensuring that tribes are the primary beneficiaries of gaming revenues. Violations of IGRA can lead to civil fines of up to $25,000 per day. 

NIGC Chairman Philip N. Hogen said, “The NIGC hopes that this settlement agreement sends a strong message to individual contractors and management companies in the Indian gaming industry – If you manage an Indian casino without an approved management contract, you will face serious civil fines and other repercussions.”

Hogen also stated “NIGC is appreciative of the strong cooperation of the Quapaw Tribe and its Gaming Commission in resolving this matter. When the tribe came to fully realize the nature of their relationship with Mr. Dunn and his companies, they were quick to address the matter, and to take steps to help ensure that there will be no re-occurrence of this situation.”

Click here to view NIGC Settles Action Against Marcus Dunn and Companies.

The NIGC is an independent regulatory agency established within the Department of the Interior pursuant to the Indian Gaming Regulatory Act of 1988.

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