On Oct. 7, the Osage Nation Gaming Commission voted unanimously to suspend the gaming licenses for acting Osage Casino CEO Joe Olujic, CFO Richard Lobdell and Executive Chef Jesus Lorenzo pending an investigation of allegations of wrongdoing made against the three men.
The Gaming Commission board suspended the three licenses during its regular board meeting that day following an executive session. Afterward, the Gaming Commission released the following statement regarding the license suspensions:
“The Commission’s action to suspend the gaming licenses is the result of an on-going investigation into alleged wrongdoing and gaming violations.
“The suspensions are in accordance with policy and protocol for on-going investigations of gaming act violations.
“The Commission is working in coordination with the Osage Nation Gaming (Enterprise) Board and the Osage Nation Attorney General’s Office.”
Based upon Osage law, the Commission determined it was necessary to temporarily suspend the individuals to protect the integrity of the assets of the Osage Nation and to proceed expeditiously to investigate the matters reported, said Gaming Commission Chairwoman Marsha Harlan.
On Oct. 29, the Gaming Commission met again for an executive session regarding the license issue. Olujic and Lobdell requested the meeting with the Gaming Commission and attended with their hired legal counsel in an effort to correct the alleged violations, Harlan said.
According to draft minutes of the meeting, more details were issued surrounding the license suspensions of Olujic and Lobdell. The minutes also state that Olujic voluntarily surrendered his gaming license by the meeting’s end and that action was accepted by the Gaming Commission.
“Mr. Olujic made a statement thanking the Osage Nation and the Gaming Enterprise for allowing him the opportunity to help grow the Osage Casinos and to be a part of the organization,” the draft minutes stated.
It wasn’t immediately known if Olujic formally surrendered his resignation, but primary gaming management officials are required to obtain gaming licenses as a pre-employment condition, according to Osage law. Osage Casino and Gaming Enterprise Board officials did not respond to requests for comment on Olujic’s status following the Oct. 29 meeting.
According to the meeting minutes, a charge of embezzlement was made against Olujic, noting: “Mr. Olujic used his credit card and expense privileges on things that were not tribal or business related. Mr. Olujic also failed to report or disclose to the Commission and the (ON) Congress that he had used the Nation’s facilities to develop two businesses named ‘OC Foods’ and ‘Play and Eat’ to obtain funds for his own personal gain. Mr. Olujic also violated the Osage Nation Ethics Law by accepting things of value or business opportunities in excess for his own personal gain.”
The gaming commission then held another executive session to discuss the allegations against Olujic and when the meeting resumed in public, the minutes state: “Commissioner Harlan announced that the Commission and Mr. Olujic had reached a compromise and that (Eugene) Bertman (special counsel for the Gaming Commission) would state the proposed compromise. Mr. Bertman stated that Mr. Olujic agrees to pay twenty thousand dollars ($20,000) within fifteen days and to draft a letter describing ‘Eat and Play’ and ‘OC Foods’ to resolve the alleged breaches. His license will be reinstated and the suspension will be declared void.”
Afterward, Gaming Commissioner Jeanine Logan motioned that the agreement be accepted. Then she and Harlan voted “yes” to do so. After that motion passed, the minutes state: “Mr. Bertman recommends that the Commissioners accept the voluntary surrender of Mr. Olujic’s license to be processed in accordance with the requirements of the Commission.”
Allegations against Lobdell
Following a separate executive session to discuss the allegations against Lobdell, details of the amended complaint against him are noted in the minutes, which state: “Mr. Bertman presented the charges. The first being in violation of (Osage law of), falsifying, destroying, erasing or altering books, computer data, records or other information relating to the gaming operation in ways other than is provided in approved internal controls as well as taking any action which interferes with or prevents the Commission or Congress from fulfilling its duties and responsibilities under the Osage Nation Gaming Law and the rules of the Indian Gaming Regulatory Act. Mr. Lobdell misstated financial information regarding the operations of the Osage Casinos with the intent to mislead the Commission and the Congress in their decision regarding the Tulsa (casino expansion) Project. The second charge is in violation of Title 14-7.104, Mr. Lobdell knowingly used expense privileges to charge items that were not proper business expenses and accepted things of value from vendors in violation of the Osage Nation Ethics Law.”
The Oct. 29 meeting did not discuss allegations against Lorenzo. With business pending regarding the Lobdell and Lorenzo allegations, Harlan said the Gaming Commission could not release more details or information.
Harlan also said a Nov. 14 hearing is set regarding the allegations against Lobdell.
Olujic (Oneida Nation of Wisconsin) started working for Osage Casino’s predecessor Osage Million Dollar Elm Casino in 2009 as chief operating officer (COO), the same year Neil Cornelius was hired as CEO. Olujic and Cornelius both previously worked in gaming for the Oneida Nation in manager positions.
Lobdell started his Osage Casino CFO post in March 2010, according to his LinkedIn page. He previously served as CFO for the Tachi Palace Casino (Tachi-Yokut – California) and Apache Gold Resort & Casino (San Carlos Apache – Arizona).
Lorenzo started working for Osage Casino in 2012. He’s worked as an executive chef at the Sweetwater Country Club in Houston, the Sac & Fox Casino in Hiawatha, Kans., the Pascua Yaqui’s Casino Del Sol in Tucson, Ariz., the Tunica-Biloxi Tribe’s Paragon Casino Resort in Marksville, La., the Isle of Capri Casino Lake Charles in Lake Charles, La., and for his own business Chef Lorenzo LLC in Houston.
In unrelated news, Harlan announced at the start of the Oct. 7 meeting that third commission board member Fred Beartrack resigned from the Gaming Commission citing family obligations. The Principal Chief’s office is charged with appointing an interim Gaming Commission board member and that person is subject to confirmation by the ON Congress.
By
Benny Polacca
Original Publish Date: 2014-11-07 00:00:00