The previous CEO of a Wisconsin gaming property is heading to jail for 18 months, in response to native information experiences. It stems from an alleged embezzlement of greater than $72,000 from St. Croix On line casino Turtle Lake.
Leva Oustigoff Jr., 60, of Cumberland, Wis., was given the sentence for tax fraud on Thursday by US District Choose William Conley. The decide additionally ordered him to pay greater than $40,000 in restitution, WQOW, a neighborhood TV station, reported.
Oustigoff pled responsible to tax fraud in March, Western District of Wisconsin US Legal professional Timothy O’Shea stated. Oustigoff did not report the earnings between 2015 and 2018, prosecutors added.
The cash was used to transform Oustigoff’s home, in addition to for different private bills, Madison.com, a regional information web site, reported.
Oustigoff was indicted in 2020. There have been eight completely different counts of embezzlement in opposition to him within the indictment. He had confronted as much as 160 years in jail, prosecutors stated.
The indictment was a results of an investigation by the Federal Bureau of Investigation and the IRS. The St. Croix tribe cooperated, federal officers stated.
The St. Croix On line casino Turtle Lake is operated by the St. Croix Chippewa of Wisconsin tribe. It’s positioned some 77 miles northeast of Minneapolis, Minn.
In a previous sequence of incidents, the St. Croix Chippewa of Wisconsin was fined in 2020 for alleged misuse of on line casino funds.
It allegedly used on line casino funds to pay over $301,000 to Lawrence Larsen between 2015 and 2017 for consulting providers on marijuana and associated merchandise. He was paid from cash generated at St. Croix On line casino Turtle Lake due to the tribe’s curiosity in rising marijuana to provide hemp and Cannabidiol (CBD).
On line casino funds had been additionally used to pay for Larsen’s first-class flights to Hawaii, Atlanta, and Seattle. Moreover, he was given $21,247 in on line casino funds for a 4×4 off-road automobile, the Milwaukee Journal Sentinel reported.
The funds had been amongst these highlighted by the Nationwide Indian Gaming Fee (NIGC) in its Discover of Violation (NOV) dated April 11, 2019. The NIGC is a nationwide regulator that screens tribal gaming.
It claims the cash paid to Larsen is among the many $1.5 million that was spent improperly by the tribe. In 2019, the NIGC despatched the tribe a 29-page Discover of Violation (NOV) itemizing 527 infringements of tribal and federal guidelines.
Initially, St. Croix Chippewa of Wisconsin risked paying as much as $27 million in fines after audits declare greater than $1.5 million of tribal on line casino cash was improperly spent, misaccounted for, or apparently used for private bills.
Tribe Pays $4.5M
In August 2020, the tribe was requested to pay $4.5 million in fines for alleged wrongdoing, in response to the NIGC. The positive was lowered by the NIGC from $5.5 million due to hardship from the coronavirus pandemic on the tribe.