Feds Order Coushatta Casino Consultant Suspended Amid $350K Fraud Allegations

The Coushatta Tribal Gaming Commission (CTGC) has been ordered by the National Indian Gaming Council (NIGC) to sever its relationship with a former general manager of its casino in Louisiana for neglecting to disclose potential financial wrongdoing.

According to The Louisiana Illuminator, the federal agency requested that the commission suspend Todd Stewart's gaming license. Stewart is presently a consultant for the Coushatta Casino in Kinder, Louisiana, which is the biggest gambling establishment in the state.

Scam Using a Credit Card?

The action comes after the NIGC received a report last year that Jonathan Cernek, the former chairman of the Coushatta Tribe of Louisiana, had embezzled gaming profits. An independent audit later confirmed the allegations.

Tribal leaders did not monitor credit card usage, according to the audit.  Additionally, they were unable to provide receipts for nearly $100,000 in purchases during the two months in 2024 that auditors looked into.

First reported by Native News Online, the NIGC, FBI, and state authorities are looking into claims that Cernek and possibly others stole at least $350,000 from the tribe and its members using the credit cards.

In August 2024, three years and two months into his four-year term, Cernek abruptly resigned as chairman.  He served as vice chair and a council member before joining the tribal council, which he served on for 11 years.

$150 million loan

Shawna Castellano, a regional director at the NIGC, was interviewed by her agency in June and found that Stewart failed to "disclose suspected fraud to the external auditors during the [fiscal year] 2023 annual audit of the financial statements," according to a letter sent to the tribe on September 8 that was seen by the Illuminator.

According to the NIGC, he also did not discuss the issue with "the potential lender of a $150 million construction loan the Coushatta Casino was in the process of obtaining" until the loan was obtained.

The Coushatta Tribe was investing $150 million to enhance their resort in Louisiana, according to a March 2024 Casino.org article.  The project will renovate the casino, eateries, and roughly 800 existing hotel rooms in addition to adding 204 new ones.

Stewart seemed uncertain about who was really using the credit cards and was unable to specify how many were connected to the casino's accounts, according to the NIGC letter.

Regarding Stewart's possible license revocation, the NIGC has directed the CTGC to send out a hearing notice and inform regulators of its decision within 45 days.