FBI Probes Financial Misconduct at Louisiana’s Coushatta Casino

Federal authorities have intensified their investigation into alleged financial misconduct at the Coushatta Casino Resort in Kinder, Louisiana. The FBI and the Bureau of Indian Affairs are examining claims that previous tribal leaders mismanaged casino funds. Internal documents and interviews with former employees indicate a troubling pattern of financial irregularities, particularly involving former tribal chairman Jonathan Cernek.

The investigation focuses on accusations that Cernek misused a casino credit card for personal expenses, including purchases for his home. Former general manager and chief financial officer Todd Stewart initially raised concerns about the misallocation of casino profits intended for tribal members. In an internal communication to the Coushatta Tribal Council in August 2024, Stewart detailed his findings, which included invoices for items delivered to the Cernek residence, such as bathroom fixtures.

Stewart reported that when he confronted Cernek about these charges, he faced intimidation regarding his employment status. He later reaffirmed his commitment to integrity in his role, stating that he always conducted his duties with honesty.

In addition to Stewart, Paula Corliss, who previously managed purchasing and oversaw procurement accounts, confirmed that federal agents had interviewed her about the casino’s financial records. She acknowledged that the credit card was sometimes used for purchases delivered to Cernek’s home, although she insisted that other financial officials could access these transactions.

The situation escalated in September 2024 when the National Indian Gaming Commission (NIGC) suspended Stewart’s gaming license. The NIGC cited his failure to report the questionable credit card activity during his tenure overseeing casino operations. Subsequently, the NIGC directed the Coushatta Tribal Gaming Commission to convene a formal hearing aimed at revoking Stewart’s license.

Audits conducted by the Louisiana Legislative Auditor uncovered significant issues with casino expenditures. One audit reviewed missing receipts for purchases exceeding $100,000 within a two-month period in 2024. Another audit from 2023 highlighted hundreds of undocumented transactions, totaling more than $111,000.

Current tribal leaders have remained silent regarding the allegations, and the council has not publicly addressed the concerns raised by Stewart and others. This lack of transparency has frustrated some tribe members, who feel disillusioned by the absence of accountability. Former heritage director Jonas John, who has previously clashed with Cernek over budgetary issues, expressed concerns about the tribe’s financial governance. He advocates for stronger self-regulatory measures to prevent future misuse of funds.

Cernek resigned as chairman in August 2024, shortly before Stewart submitted his written statement to the council. In response to the ongoing investigation, the casino has revoked purchasing credit cards and implemented stricter expense policies, according to a spokesperson.

The unfolding events at the Coushatta Casino Resort highlight the critical need for financial oversight within tribal enterprises, ensuring that resources meant for community benefit are not diverted for personal gain. As investigations proceed, the community watches closely, seeking clarity and accountability from its leaders.