NOTICE OF PROPOSED CIVIL FINE ASSESSMENT 

Ref: CFA-06-09 

To: Herminia Frias, Chairwoman 

Pascua Y aqui Tribe 

7474 S. Carnino De Oeste 

Tucson, AZ 85746 

FAX: (520) 883-5014 

Stephen Hall, Executive Director 

Pascua Yaqui Tribal Gaming Office 

5655 S. Valencia Road 

Tucson, AZ 85757 

w FAX: (520)838-6695 

1. Under the authority of 25 U.S.C. 9 2713(a), of the Indian Gaming Regulatory Act 

("IGRA"), and the regulations of the National Indian Gaming Commission ('NIGC") at 

25 C.F.R. tj 575, the Chairman of the NIGC ("Chairman") hereby provides notice of his 

intent to assess a civil fine against the Pascua Yaqui Tribe, Tucson, Arizona 

("Respondent"), for violations of 25 U.S.C. 9 2710(b)(2)(C), 25 C.F.R. $9 571.12 and 

57 1.13, and Pascua Yaqui Tribe of Arizona's Gaming Ordinance Part I Chapters 1.000, 

5.000 and 8.020 (2) as set forth in detail in Notice of Violation ("NOV") No. NOV-06- 

09, issued on March 29, 2006, a copy of which is attached hereto. 

2. Pursuant to 25 U.S.C. tj 2713(a) and 25 C.F.R. 5 575.4, the Chairman may assess a civil 

fine, not to exceed $25,000 per violation, against a tribe, management contractor, or 

individual operating Indian gaming for each violation cited in a notice of violation issued 

under 25 C.F.R. 5 573.3. If noncompliance continues for more than one day, the 

Chairman may treat each daily illegal act or omission as a separate violation. 25 C.F.R. 

5 575.4 (a)(2). 
3. The NIGC regulations at 25 C.F.R. $ 575.5 provide that, within 15 days after service of a 

notice of violation, or such longer period as the Chairman may grant for good cause, the 

respondent may submit written information about the violation. The Chairman shall 

consider any information so submitted in determining the facts surrounding the violation 

and the amount of the civil fine. Respondent submitted information under 25 C.F.R. 

$ 575.5 about the violation that was received by the NIGC on April 12,2006. 

4. The Chairman has considered the factors set forth in 25 C.F.R. $ 575.4 and the written 

information submitted by Respondent and finds as follows: 

A. Economic benefit of noncompliance. Respondent has not obtained an economic 

benefit from failing to file the audit report. Respondent indicated that it has hired 

a firm to conduct the audit, therefore this factor is not being taken into 

consideration as a basis of the fine amount. 

B. Seriousness of the violation. It is the declared policy of the IGRA to provide a 

statutory basis for the regulation of gaming by an Indian tribe adequate to shield it 

from organized crime and other corrupting influences; to ensure that the Indian 

tribe is the primary beneficiary of the gaming operation; and to assure that gaming 

is conducted fairly and honestly by both the operator and players. 25 U.S.C. 

$2702. Submission of an annual audit report by a firm of certified public 

accountants is critical to protect the NIGC's mission to protect the integrity of 

Indian gaming. The audit report is evidence of, among other things, the integrity 

of the gaming operation and, more specifically, the adequacy of the books and 

records, the hnctioning of the internal financial controls, and the disclosure of 

information having a bearing on the financial statements. Any delay in receipt of 

the financial statements significantly reduces the reliability and relevancy of the 

data to the NIGC. The NIGC uses the audited financial statements to measure 

regulatory compliance, which directly relates to the detection and remediation of 

potential and actual integrity violations. 

C. Histow of violations. Respondent has had no violations in the last five years that 

have been the subject of a final order of the Commission. 

D. Negligence or willfulness. A civil fine may be reduced based on the degree of 

fault of the Respondent in causing or failing to correct the violation, either 

through act or omission. The NIGC regulations require that a tribe cause to be 

conducted annual independent audit reports for each gaming operation on Indian 

lands and submit a copy of the audit report to the NIGC within 120 days after the 

end of each fiscal year. Respondent knew of the audit submission requirements 

and failed to meet them. Respondent submitted a copy of its annual audit report 

for the fiscal year ending September 30,2004 on February 2,2005. Further, on 

February 24,2006, NIGC issued a Preliminary Notice of Violation to the Tribe 

regarding its failure to submit an audit and advising that the NIGC may take 

further enforcement action. Respondent filed a Response to the PNOV on March 
complete the audit; to date, however, an audit has not been submitted. 

Respondent was at least negligent, rather than willful, in its actions. 

E. Good faith. A civil fine may be reduced based upon the degree of good faith of a 

respondent in attempting to achieve rapid compliance after notice of a violation. 

In this matter, Respondent has not submitted the audit reports for Casino of the 

Sun and Casino del Sol, after the Preliminary Notice of Violation was issued and 

before the Notice of Violation was issued. Three months have passed since the 

audit was due and it has not yet been submitted. 

WHEREFORE, the Chairman, having carehlly reviewed the above factors, has 

determined that a fine in the amount of $5,000.00 (Five Thousand Dollars) (Fine) is 

assessed on Respondent for failure to submit timely annual audit reports for Casino of the 

Sun and Casino del Sol. 

This fine shall be due in full by July 1,2006. Checks shall be sent to the National Indian 

Gaming Commission, 1441 L Street, NW, Suite 9100, Washington DC 20005. Checks 

should be made payable to the United States Treasury. Interest shall be assessed at rates 

established from time to time by the Secretary of the Treasury on amounts remaining 

unpaid after their due date. 31 U.S.C. 8 3717. 

FURTHERMORE, under 25 U.S.C. § 271 3 and 25 C.F.R. § 575.4, the Chairman has 

determined that an additional fine shall be assessed on Respondent. Fines for continuing 

violations may be imposed in an amount of up to $25,000 per day of non-compliance. 

Until an annual audit report for the fiscal year ending September 30,2005 is submitted to 

the NIGC, for every 30 day period after July 1,2006, an additional civil fine shall be 

assessed on Respondent. The fine for the first 30 day period shall be $2,000.00 (Two 

Thousand Dollars) ("Base Fine"). For each 30 day period thereafter, the fine shall be 

increased by $500.00 until such audit is submitted ("Increased Fine"). For example, the 

Increased Fine for the second 30 day period shall be $2,500.00 (Two Thousand Five 

Hundred), for a total fine of $4,500.00 (Four Thousand Five Hundred Dollars 

("Aggregate Fine")) for the full 60 day period. The Increased Fine for the third 30 day 

period shall be $3,000.00 (Three Thousand Dollars) making the Aggregate Fine 

$7,500.00 (Seven Thousand Five Hundred Dollars). A successive Aggregate Fine shall 

be assessed on Respondent for each 30 day period until an annual audit report for the 

fiscal year ending September 30,2005 is submitted to the NIGC. 

The above-described amounts of the Fine, Base Fine, Increased Fine and Aggregate Fine 

represent an appropriate balancing of the other factors cited above. 
9. Pursuant to 25 C.F.R. 577.3, within 30 (thirty) days after service of this Notice of 

Proposed Civil Fine Assessment, Respondent may appeal the proposed fine to the full 

Commission by submitting a notice of appeal to the National Indian Gaming 

Commission, 1441 L Street NW, Suite 9 100, Washington, DC 20005. Respondent has a 

right to assistance of counsel in such an appeal. A notice of appeal must identify this 

Notice of Proposed Civil Fine Assessment. Within ten (1 0) days after filing a notice of 

appeal, Respondent must file with the Commission a supplemental statement that sets 

forth with particularity the relief desired and the grounds therefore and that includes, 

when available, supporting evidence in the form of affidavits. If Respondent wishes to 

present oral testimony or witnesses at the hearing, Respondent must include a request to 

do so with the supplemental statement. The request to present oral testimony or 

witnesses must specify the names of proposed witnesses and the general nature of their 

expected testimony, and whether a closed hearing is requested and why. Respondent 

may waive its right to an oral hearing and instead elect to have the matter determined by 

the Commission solely on the basis of written sm 

Staff Attorney 
Certificate of Sewice 

I certify that this Civil Fine Assessment was sent by facsimile and mailed VIA U.S. 

certified mail return receipt requested on this 17th day of May, 2006 to: 

Henninia Frias, Chairwoman 

Pascua Yaqui Tribe 

7474 S. Carnino De Oeste 

Tucson, AZ 85746 

FAX: (520) 883-5014 

Stephen Hall, Executive Director 

Pascua Yaqui Tribal Gaming Office 

5655 S. Valencia Road 

Tucson, AZ 85757 

FAX: (520)838-6695