Native News
Coushatta Tribal Members Demand Accountability Amid Expanding Investigation Into Missing Casino Funds
For William Worfel, allegations of corruption within the Coushatta Tribe of Louisiana strike a familiar chord.
More than 15 years ago, Worfel helped expose one of the most notorious scandals in modern tribal political history. In November 2010, he testified before the U.S. Senate Committee on Indian Affairs, then chaired by the late Sen. John McCain (R-AZ), about how disgraced lobbyist Jack Abramoff and associate Michael Scanlon defrauded the Coushatta Tribe out of approximately $32 million through inflated lobbying fees, deceptive contracts, and overbilling schemes between 2001 and 2004.
Now, Worfel says he fears the tribe may once again be confronting a major financial scandal — this time from within its own leadership.
The 66-year-old former tribal councilor will join other tribal citizens at a community meeting on Saturday, May 9, where members are expected to demand answers about missing funds tied to the Coushatta Casino Resort renovation project and alleged misuse of tribal money by former tribal officials.
At the center of the controversy is former Tribal Chairman Jonathan Cernek, who resigned in August 2024 amid allegations involving the diversion of funds connected to the tribe’s $150 million casino expansion project in Kinder, Louisiana. The project added 204 guest rooms and 100 luxury suites to the Coushatta Casino Resort and is expected to open within weeks.
Questions surrounding Cernek intensified after allegations surfaced that he and his wife used tribal casino credit cards to purchase nearly $350,000 worth of personal items delivered to their home during the early stages of the renovation project.
Last year, a source familiar with the tribe’s internal operations told Native News Online that federal agents conducted an interview lasting more than three hours regarding the alleged misuse of casino credit cards reportedly used by Cernek. According to the source, investigators focused on purchases unrelated to casino operations.
A forensic audit conducted by Deloitte later confirmed funds had been embezzled, according to tribal sources familiar with the findings.
The investigation widened further after the National Indian Gaming Commission (NIGC) recommended revocation of the gaming license of former Coushatta Casino Resort General Manager and Chief Financial Officer James “Todd” Stewart.
According to the NIGC, Stewart allegedly failed to disclose known or suspected fraud during the casino’s 2023 external financial audit, despite being aware of concerns involving misuse of gaming revenues. The commission stated Stewart signed a management representation letter asserting he was unaware of suspected fraud or legal noncompliance.
The NIGC also alleged Stewart failed to disclose suspected misuse of revenues while the casino was securing a $150 million construction loan for the hotel expansion project. According to the commission, allegations involving Cernek’s alleged embezzlement were not disclosed until after financing had already been approved.
Stewart reportedly told regulators the construction project was already underway and financing was necessary to pay contractors. However, the commission emphasized that, as both CFO and a certified public accountant, Stewart had legal, ethical, and fiduciary obligations under professional accounting standards, tribal gaming regulations, and lender agreements to disclose suspected fraud.
The NIGC concluded Stewart’s alleged failures to follow internal controls and properly oversee financial operations may have contributed to the probable misuse of gaming revenues.
For Worfel, the slow pace of the investigations has become increasingly frustrating.
“I say let’s hear some answers. I’m tired of the tribal council giving out what they don’t want to answer,” Worfel told Native News Online. “We have a $150 million casino hotel that is supposed to open in the next couple of weeks or so. Tribal members don’t have answers and we want accountability.”
Worfel also questions whether others within tribal leadership or casino management knew about the alleged misuse of funds long before the scandal became public.
Among those facing scrutiny is Tribal Council Secretary-Treasurer Kristian Poncho, who certified the Tribal Council resolutions authorizing execution of the $150 million Credit Agreement during the March 11, 2024 closing. The agreement was signed by Cernek in his role as tribal chairman.
The certified resolutions granted Cernek authority to bind the facility and pledge substantially all gaming-enterprise assets as collateral for the financing package.
Poncho allegedly provided those certifications despite already having been briefed, according to Stewart’s Aug. 13, 2024, sworn statement, about questionable charges connected to Department 520 — an account on the Coushatta Casino Resort general ledger coded for “Tribal” or “Community Relations” — as well as preliminary findings from interviews with the casino’s purchasing manager.
Legal experts say the allegations raise serious fiduciary concerns.
As Secretary-Treasurer, Poncho held financial stewardship responsibilities to the tribe and its citizens. Attorneys familiar with tribal governance and lender agreements note those obligations do not disappear simply because a certification document contains only narrow factual attestations.
By certifying resolutions authorizing Cernek to execute the loan documents and “take such other actions as may be necessary” to complete the transaction, Poncho effectively approved broad authority over a financing agreement backed by tribal gaming revenues.
The allegations also raise broader legal questions about whether knowingly enabling access to $150 million in borrowed funds by an official suspected of misconduct could expose individuals to claims involving breach of fiduciary duty, aiding and abetting, or conspiracy.
Because lenders, including Wells Fargo, relied on those certifications in approving the financing package, attorneys say a court could potentially view silence about alleged ongoing theft by the authorized official as a material omission during the lending process.
For many Coushatta citizens, the issue now extends beyond one former chairman or one casino project. Tribal members are increasingly asking how alleged misconduct could continue undetected — or unaddressed — during one of the largest financial undertakings in the tribe’s history.
Worfel says that is why he continues attending tribal meetings and court proceedings.
He believes tribal citizens deserve transparency about what happened to tribal funds and who knew about the alleged misconduct before it became public.