Spicer's Election Upheld by Indian Court

The re-election of Paul Spicer as chief of the Seneca-Cayuga Tribe of Oklahoma was upheld Friday by the Court of Indian Offenses in Miami , Okla. Spicer won the June 2 tribal election by a more than 2-to-1 margin in a record turnout of tribal voters.

“Our tribal members have spoken with a strong and clear voice in support of the direction we have led the tribe over the last two years,” said Spicer. “I am gratified by their support and pledge to continue to move the tribe forward in ways that benefit all members and their families.”

Spicer’s re-election was challenged in court by a small group of supporters of former Chief Leroy Howard, whom Spicer defeated in this election. On Friday, July 27, the court ruled it does not have jurisdiction over tribal election disputes and allowed the unanimous confirmation of the tribe’s election committee to stand.

During his first two-year term as chief, Spicer made a number of changes, including implementing professional management of the tribe’s enterprises. “With the explosive growth of our gaming and tobacco businesses, we are now the equivalent of a mid-sized corporation,” Spicer stated. “The tribe can be proud to have perhaps the best management and systems of any tribe our size to ensure that the tribe’s assets are protected and the benefits from our businesses are maximized for all tribal members.

Change is difficult, and there will always be those who oppose it,” continued Spicer. “However, with this overwhelming show of support by tribal members of the direction we are moving, I am confident we can now all come together to benefit from the exciting opportunities in front of the tribe.”

Spicer sees construction of the new Grand Lake Casino and Resort on the shores of Grand Lake in Grove as the greatest of those opportunities. The tribe announced in May that it will be building a new 100,000-square-foot casino, including a five-story hotel and three restaurants.

“This will be the premier casino and hotel complex in northeastern Oklahoma . It will create 450 new jobs and bring numerous benefits to the Grove community,” he said.

The Seneca-Cayuga Tribe of Oklahoma has 4,400 members and currently employs 330 people in its gaming, tobacco, and tribal operations in Ottawa and Delaware counties. The tribe also distributes more than $3 million annually in medical, housing, and other assistance to area families and individuals.

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.

Tribe Seeks Restraining Order

The Seneca-Cayuga Tribe of Oklahoma is seeking a restraining order barring an attempt by the tribe’s Secretary Treasurer to seize control of the tribe’s bank accounts. The tribe is also seeking damages against the individuals responsible for the allegedly illegal actions, according to a news release from the tribe.

“This is an unfortunate situation involving a few disgruntled members whose candidates recently lost a tribal election by a large margin and are now seeking to grab power by any means. The illegal actions of these few are creating great hardship for the entire tribe, especially for the 50 plus employees who are without jobs due to their desperate actions,” said Chief Paul Spicer.

Without free access to its accounts, the tribe is unable to buy raw material for its tobacco factory, which was forced to close Tuesday. Other tribal operations, including the tribe’s Grand Lake Casino, remain open for business.
“This is only the latest in a series of actions by the losing side in our recent elections to disrupt the duly elected government and its operations,” said Spicer. “We will not tolerate their attempts to override the clearly expressed desires of the majority of our people.” Spicer was elected to a second two-year term as Chief by a nearly 2 to 1 margin over his nearest opponent in a June 2nd tribal wide election.

The Seneca-Cayuga Tribe consists of approximately 4,400 members, about half of whom reside in Delaware and Ottawa Counties in Northeast Oklahoma. Tribal headquarters are in Miami, Oklahoma.