Federal Agencies Investigate Misuse of Funds at Louisiana Tribal Casino

Former Coushatta Tribe chairman Jonathan Cernek is alleged to have used a casino-issued credit card to purchase household materials for his homeImage Source: Shutterstock.com

The FBIand the Bureau of Indian Affairshave stepped up their investigation into alleged financial wrongdoing at the Coushatta Casino Resort in Kinder, Louisiana. Several sources and internal documents reveal that federal agents have interviewed former employees about possible mishandling of casino money by previous tribal leaders.

The investigation centers on Jonathan Cernek, who used to chair the Coushatta Tribe. He stands accused of using a casino credit card to buy materials and furnishings for his own home. Todd Stewart, the former general manager and chief financial officer, brought this issue to the attention of tribal leadership last year. He expressed worry that casino profits meant to benefit tribe members were instead going toward personal use, reported the Louisiana Illuminator.

In an internal statement to the Coushatta Tribal Councilin August 2024, Stewartreported finding invoices for items sent to the Cerneks’ home, including bathroom fixtures. He said that when he questioned the charges, the former chairman threatened his job. Stewartlater verified his statement was true, saying he had always done his job with honesty.

Paula Corliss, who used to manage purchasing and oversee the casino’s procurement accounts, said the FBIand the Bureau of Indian Affairsinterviewed her about the casino’s financial records. She admitted that the credit card was sometimes used to buy things delivered to the Cerneks’ house, but said other finance officials could see these transactions.

In September, the National Indian Gaming Commission (NIGC)suspended Stewart’s gaming license. The NIGCclaimed he did not report concerns about credit card activity while he oversaw casino operations. The NIGCtold the Coushatta Tribal Gaming Commissionto hold a formal hearing to revoke his license.

Later audits found issues with casino spending. TheLouisiana Legislative Auditorlooked at one audit. It showed missing receipts for over $100,000in purchases during a two-month period in 2024. A similar audit from 2023 noted hundreds of transactions without documentation. These added up to more than $111,000.

Current tribal leaders have kept quiet about the claims, and the council has not given any public explanation. Some tribe members feel frustrated by what they see as a lack of openness and responsibility.

Jonas John, the former heritage director who once disagreed with Cernekabout budget matters, said financial control has been a concern in the tribe for a long time. He thinks the community should have stronger rules to govern itself to stop money from being misused in the future.

Cernekstepped down as chairman in August 2024 just before Stewartgave his written statement to the council. Since then, the casino has ngaken away purchasing credit cards and put stricter rules in place for expenses, a spokesperson said.