Seneca-Cayuga Tribe Files Suit Against Officer
Two Seneca-Cayuga tribal businesses filed suit Thursday in Oklahoma Circuit Court to enjoin a tribal officer from interfering with the corporations’ banking, employee and business relationships, accusing her of acting to harm the corporations while a corporate director.
“The plaintiffs -- the Seneca-Cayuga Tribal Gaming Corporation and the Seneca-Cayuga Tribal Tobacco Corporation -- were incorporated by the Seneca-Cayuga Tribe to operate as for-profit businesses, rather than to be manipulated as pawns in tribal politics,” said Paul Spicer , who as the Tribe’s chief serves as president of both corporations. “But that is precisely what Kay Ellison , the secretary-treasurer of the Tribe, is doing by telling the bank that she has day-to-day control over the corporation’s bank accounts, cash flow, and accounts payable.
“As one of the corporate directors, she has a fiduciary duty to act in the best interest of the corporations,” Spicer said. “She has instead disrupted their operations, hurt employee morale, interfered with vital business relationships, lowered revenues, and put the companies in jeopardy of violating federal laws.”
The businesses were incorporated under tribal corporation laws. The Tribe holds the only shares issued by the corporations. An independent accounting firm recently completed audits of both corporations, Spicer said.
Ellison , although holding a tribal office, is not a treasurer or executive with either tribal corporation. The lawsuit alleges that Ellison told the corporations’ bank that she holds ultimate authority to approve all corporate expenditures, which includes checks issued to employees and vendors, daily transfers by the tobacco corporation to pay federal cigarette taxes, and employee payrolls. Her actions, according to the suit filed in Tulsa County, caused a short-term layoff at the tobacco company due to uncertainty as to whether Ms. Ellison had frozen the company operating funds; the inability of the gaming corporation to draw funds from its operating account with a corporate debit card; interruption of the tobacco company’s tax transfers to the U.S. Department of Alcohol, Tobacco, and Firearms; and violation of the federal Indian Gaming Regulatory Act when she, without authority from federal regulators, assumed control of gaming money.
The Tribe itself had filed suit in the Federal Court of Indian Offenses to enjoin Ellison from interfering with Tribal accounts. The request for the injunction is scheduled to be heard July 20 by an administrative judge in Miami , Okla.
Ellison demanded control over the corporations’ bank accounts after a tribal election challenge was filed in the Court of Indian Offenses. A tribal commission had certified the election results before an administrative judge could enjoin certification of the election results. The voting results showed Spicer winning over former chief Leroy Howard by a 2-1 margin.
Second Chief Katie Birdsong filed her own action in the Court of Indian Offenses, seeking to be named the Tribe’s chief.
“The plaintiffs -- the Seneca-Cayuga Tribal Gaming Corporation and the Seneca-Cayuga Tribal Tobacco Corporation -- were incorporated by the Seneca-Cayuga Tribe to operate as for-profit businesses, rather than to be manipulated as pawns in tribal politics,” said Paul Spicer , who as the Tribe’s chief serves as president of both corporations. “But that is precisely what Kay Ellison , the secretary-treasurer of the Tribe, is doing by telling the bank that she has day-to-day control over the corporation’s bank accounts, cash flow, and accounts payable.
“As one of the corporate directors, she has a fiduciary duty to act in the best interest of the corporations,” Spicer said. “She has instead disrupted their operations, hurt employee morale, interfered with vital business relationships, lowered revenues, and put the companies in jeopardy of violating federal laws.”
The businesses were incorporated under tribal corporation laws. The Tribe holds the only shares issued by the corporations. An independent accounting firm recently completed audits of both corporations, Spicer said.
Ellison , although holding a tribal office, is not a treasurer or executive with either tribal corporation. The lawsuit alleges that Ellison told the corporations’ bank that she holds ultimate authority to approve all corporate expenditures, which includes checks issued to employees and vendors, daily transfers by the tobacco corporation to pay federal cigarette taxes, and employee payrolls. Her actions, according to the suit filed in Tulsa County, caused a short-term layoff at the tobacco company due to uncertainty as to whether Ms. Ellison had frozen the company operating funds; the inability of the gaming corporation to draw funds from its operating account with a corporate debit card; interruption of the tobacco company’s tax transfers to the U.S. Department of Alcohol, Tobacco, and Firearms; and violation of the federal Indian Gaming Regulatory Act when she, without authority from federal regulators, assumed control of gaming money.
The Tribe itself had filed suit in the Federal Court of Indian Offenses to enjoin Ellison from interfering with Tribal accounts. The request for the injunction is scheduled to be heard July 20 by an administrative judge in Miami , Okla.
Ellison demanded control over the corporations’ bank accounts after a tribal election challenge was filed in the Court of Indian Offenses. A tribal commission had certified the election results before an administrative judge could enjoin certification of the election results. The voting results showed Spicer winning over former chief Leroy Howard by a 2-1 margin.
Second Chief Katie Birdsong filed her own action in the Court of Indian Offenses, seeking to be named the Tribe’s chief.
Labels: Indian Tribes
posted by Editor | 1:15 AM
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