The South Florida Seminole Indians' billion-dollar gambling enterprise is under investigation, again, after allegations that some members of the tribe took home more than their fair share of profits.
The National Indian Gaming Commission is accusing the tribe of improper spending from their vast gaming operations to pay for jewelry, cars, travel and other personal expenses, according to the Miami Herald.
According the Commission, the tribe transferred gambling profits to six members in violation of the Indian Gaming Regulatory Act. Under the Act, the Seminoles may only spend profits for business purposes, development, local government operations, charitable contributions and for the well being of its members.
While the tribe may distribute funds to individual members, they must be in “equal shares” and under federal approval. While all Indian tribes are sovereign nations, they must adhere to federal laws.
And the federal government tends to disapprove of $85,000 platinum jewelry and pricey motorcycle purchases, as well as $10,000 Christmas parties, some of the offenses the members are accused of committing.
Among those accused are Tribal Council member Max B. Osceola Jr., who racked up the $85,000 on personal expenses and Immokalee liaison Rafael Sanchez, who dropped over $55,000 on a GMC Yukon Denali.
The Seminoles have 30 days to appeal the charge and explain the purchases, which also include housing-related expenses, and $5,000 to a member for a leasing a property for “hunting and other recreational activities.”
The tribe awaits a potential $25,000 fine for each misuse of profits as well as a potential closure of its gambling operations, which includes the Hard Rock Hotel and Casino in Hollywood.
"The Seminole Tribe is reviewing the notice of violation and is intent on correcting their violations," Tribal spokesman Gary Bitner told the Herald.
If they do not, the Seminoles stand to lose their largest sources of income, including gaming locations in Hollywood, Tampa, Immokalee and Coconut Creek, which employ over 2,000 non-Indians.
The news comes nearly a decade after former Chief James E. Billie admitted to embezzling $2.7 million and transferring the cash overseas to an Internet gaming site.
