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David Stanley Ford

Feds to audit Cheyenne, Arapaho Tribes
Feds to audit Cheyenne, Arapaho Tribes

By Tony Thornton    Comments Comment on this article8
Published: December 20, 2007

CONCHO — Federal Indian gaming regulators plan a rare investigative audit of the Cheyenne and Arapaho Tribes, The Oklahoman has learned.

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AT A GLANCE
The investigation
The National Indian Gaming Commission will send three auditors to the Cheyenne and Arapaho tribal headquarters in Concho on Jan. 8.

Auditors want access to all financial records related to gambling revenue for 2006 and 2007, plus all charge card statements.

The initial audit will take two weeks, the agency's audit director told tribe officials.

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The National Indian Gaming Commission wants to know how the two tribes have spent an estimated $50 million derived from their three casinos — primarily the Lucky Star casinos at Concho and Clinton — in the last two years.

The examination of gaming revenues will begin Jan. 8, according to a Nov. 30 letter sent to the tribe by the federal agency's audit director.

Chuck Choney, one of the agency's three commissioners, said he couldn't recall such an audit being performed on an Oklahoma tribe.

He said any criminal findings will be turned over to the FBI.

The Cheyenne and Arapaho governor, Darrell Flyingman, said he welcomes the investigation.

"It's a sad thing that our own people had to turn us in, but it's going to uncover a lot of things and bring them out into the open,” Flyingman said. "I hope they'll come down and look at all the people who have been taking money from the casinos.”

Ida Hoffman, who heads the tribes' legislative body, said she requested a more exhaustive forensic audit. Instead, the agency agreed only to make sure tribal officials are complying with a gaming revenue allocation plan.

Hoffman said the first 21 percent of casino profits goes toward "administrative expenses.” After that, the plan allots 30 percent for economic development, 20 percent for direct payments to tribe members, 16 percent for elder care, 10 percent for education, 10 percent for culture and heritage, 2 percent to the election board and 2 percent to the health board.

"If the audit shows that every cent of our gaming revenue was properly spent, I will be the first one to go (to Flyingman) and say, ‘Good job.' I don't believe that's going to happen,” Hoffman said.

Regulators want an accounting of the estimated $2 million to $2.5 million monthly profit produced by Lucky Star casinos.

The Cheyenne and Arapaho Tribes have been in political tumult for years, and tribal officials have said the factionalism has grown stronger as gaming profits increased.

An FBI investigation that began in 2004 has resulted in embezzlement convictions against two former tribal chairmen. That inquiry is ongoing.

Under federal law, Indian gaming profits can be spent in these ways:

•To fund tribal government.

•To provide for the general welfare of tribal members.

•To promote economic development.

•To donate to charities.

•To help fund local governments.

Tribal troubles have grown
Revelations of the historical abuse of gaming profits within the Cheyenne and Arapaho Tribes led to a new tribal constitution and a revenue allocation plan for the tribes.

Neither the constitution nor the allocation plan resolved tensions. The animosity grew after Flyingman announced his intent to cut ties with Southwest Casino and Hotel Corp., which ran the Lucky Star casinos for more than 13 years. Flyingman severed the relationship last summer.

Flyingman alleges legislators received direct payments from the casino. Hoffman claims Flyingman has steered money to his supporters to the exclusion of other groups.

Choney, the federal regulator, said both sides in the tribes' current power struggle made accusations against the other, which prompted the investigative audit.

"The governor's side is saying there is funding missing because of the problems with Southwest Casino. The legislature is saying that since the governor's office has taken over, there isn't proper management of the casino and that some money is missing,” Choney said. He said the audit should "quell any rumors or determine whether these rumors are true.”

The federal agency recently began a similar audit of the Seminole Tribe of Florida after a series of newspaper investigative reports detailed how tribal officials spent more than $280 million as they chose since 2000.

The Seminole case is similar to the longstanding allegations within the Cheyenne and Arapaho Tribes, Choney said.

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David Stanley Ford


Related Topics: U.S. State Government, U.S. Government, Special Interest Groups, Gambling, Native American Issues


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Flyingham is not "all that." Sure, we had these problems before he came, and we'll continue to have them after he leaves. But he is not our "savior" as many seem to think or express. Ask yourselves, what has he actually done for the tribes? What has he actually done that wasn ot in the works or already started? How much credit is given to the directors for the programs that actually do the work? Or the staff that work the long hours? The per capita payments were already started long before he came, the casino, already established (what is being done with it now? What and where is the plan for the casino?), education department and tribal college, already in the works before he came, Clinton I.H.S. clinic was already planned before he came. So what has he actually done? He's managed to take mostly everyone to court that have expressed themselves against him and to sue them.... It seems that the only ones winning here are the lawyers who have to be paid. If anyone tries to oppose him, he "takes them to court." If you are "for him" then you are automatically "against him." What happened to "FOR THE PEOPLE?" You know, one of these days, he's going to be gone, and we'll still be here. It'll be us that have to clean up this mess that he's created.
EyeSpy, All Over The Place - Dec 28, 2007 at 9:22 am
Well it is about time! What they really need to do is go back to when Bill and Vinita were on there!!!!!!!!

dictator Ida needs to step aside and let someone who knows about business and has the necessary business savvy to "lead" the tribes! While we bicker the other tribes are making money by leaps and bounds!

Southwest had their time! 13 years to be exact! and what do we have at Concho? The same sad old buildiing that was built to house Lucky Star....why isn't there a food court? a motel? conference center? what inprovements have been made to the casino itself?
now look at Riverwind, Firelake Grand....what is the difference?

You know Ida says we should be happy getting our annual per-cap....why should we be? when it could and should be monthly payments to every tribal member!

Wake up people
Indianz, Winnebago - Dec 21, 2007 at 10:35 am
I don't think every instance is racism, it's more than likely just ignorance and an inability to see beyond the narrow perception that somebody is somehow "getting more than me" or that they are somehow getting away with something. They may not pay the ad velorum taxes but the schools are very well compensated for this deficiency. If you don't believe that, then go down to your school board and demand that they quit taking the money that they recieve per Indian student. Try and convince them that the Indian contribution is so small and insignificant that they can give it up and can easily make it up with a few bakesales. Don't feel bad though. Many Non-Indian people share this misconception. And before you mention taxes. All monies are taxable, perhaps not by the state and all that money made by the casinos that is given to tribal members is taxable. It counts as income in consideration for everything from food stamps to federal student aid to social security and the IRS takes their pound of flesh as well. So don't feel bad, they aren't getting away with anything. And you know what? I have yet to meet and Indian with with more than forty or fifty bucks in their checking account and even fewer Indians that have an off shore or swiss bank account. So where did all their money go? Not that it's any of your business but it went to Wal-mart, or for buying gas at Loves or getting groceries and that ALL gets taxed by Oklahoma and whatever city they are located in, in your case El Reno. I'll bet that Diffee and Frontier don't mind selling their cars to folks whose money was generated by one of these "not-paying-their-fair-share" Indin tribes or their Casinos. Have a nice day...;)
Atilla, Dodge - Dec 20, 2007 at 12:26 pm
Randle, not to defend the tribes, but you also need to take into account all the thousands of dollars that tribal programs spend at local businesses, and I mean THOUSANDS! Doesn't that help with economic development? Houses, that is another subject. Sure the tribes could do more, but take into account that the tribes have a 30%-60% unemployment rate, which that number may be conservative. I am involved not only tribally, but with the town of El Reno its self, and I"M NOT RACIST!
Personally, I'm relieved that there is going to be an audit. So many rumors have come about regarding misspending. Some allegations, I"ve heard first-hand from individuals who have benefitted from the dollars spread around by LYINGHAM (flyingham). Since he's taken over the casino, where is the long-term plan? Where is our clinic? What are they doing to encourage economic development? Since he's been in, I haven't seen one thing come from that program, yet they continue to receive over a million dollars a year. Maybe the money they've generated is being used to pay the supreme court justices off to rule in lyingham's favor.
EyeSpy, All Over The Place - Dec 20, 2007 at 10:03 am
Along with the fact the tribes have not paid their fair share on houses they have purchased over the years continue to cost El Reno and Canadian County schools. Everyone seems to be afraid of them because they have plenty of time to run around, threaten and scream that everyone is racist. One only has to check and see if they have really ever followed through with dollars to help El Reno with economic development.
Randy, Oklahoma City - Dec 20, 2007 at 9:07 am
Does this really surprise anyone? The Cheyenne and Arapaho Tribes are the most dysfunctional in America.
MartzMimic, Oklahoma City - Dec 20, 2007 at 7:43 am
I hope justice os served.
Tony, Oklahoma City - Dec 20, 2007 at 7:00 am
Report as inappropriate or
Ignore Tony
Tip of the iceberg, these guys just got caught is all...
mister, bogata - Dec 20, 2007 at 6:48 am

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