Federal Investigation Uncovers Financial Mismanagement at Casino

The FBI and the Bureau of Indian Affairs are intensifying their investigation into alleged financial misconduct at the Coushatta Casino Resort in Kinder, Louisiana. The inquiry focuses on former tribal leaders, particularly Jonathan Cernek, who is accused of misusing casino funds for personal expenses.

Multiple sources, including internal documents, indicate that federal agents have interviewed former employees about possible financial irregularities linked to the casino’s management. The investigation highlights accusations that Cernek used a casino credit card to purchase materials and furnishings for his residence. Todd Stewart, the former general manager and chief financial officer, raised concerns last year regarding the diversion of casino profits that should have benefited tribe members.

In an internal statement to the Coushatta Tribal Council in August 2024, Stewart disclosed that he found invoices for items delivered to the Cernek home, including bathroom fixtures. When he confronted Cernek about these charges, he claims that the former chairman threatened his job. Stewart later confirmed the accuracy of his statements, asserting that he had always conducted his duties with integrity.

Another former employee, Paula Corliss, who managed purchasing and oversight of the casino’s procurement accounts, stated that both the FBI and the Bureau of Indian Affairs had questioned her regarding the casino’s financial records. Corliss acknowledged that the credit card was occasionally used for purchases delivered to the Cernek residence, but maintained that other financial officials had access to these transaction records.

The situation escalated in September when the National Indian Gaming Commission (NIGC) suspended Stewart’s gaming license, citing his failure to report concerns about credit card activity during his tenure overseeing casino operations. Following this suspension, the NIGC directed the Coushatta Tribal Gaming Commission to conduct a formal hearing to consider revoking his license.

Audits have revealed significant discrepancies in casino spending. A review by the Louisiana Legislative Auditor uncovered missing receipts for over $100,000 in purchases over a two-month period in 2024. Another audit from 2023 identified hundreds of undocumented transactions amounting to more than $111,000.

Despite the serious claims, current tribal leaders have remained largely silent, and the council has not publicly addressed the allegations. Frustration is mounting among tribe members who perceive a lack of transparency and accountability. Jonas John, a former heritage director who previously clashed with Cernek over budgetary issues, remarked that financial oversight has been a longstanding concern within the tribe. He advocates for stronger governance to prevent future misuse of funds.

Cernek resigned from his position as chairman in August 2024, just prior to Stewart’s written statement to the council. In response to the ongoing scrutiny, the casino has since revoked purchasing credit cards and implemented stricter expense regulations, according to a spokesperson.

As the investigation unfolds, the implications for the Coushatta Tribe and its members remain significant, highlighting the need for greater financial oversight and accountability in tribal governance.