shall make good faith efforts to have the annual report of the Use of Revenues Audit
completed by June 30 of the following fiscal year;

d. The Tribe will maintain and make available to the outside independent auditor
all necessary documentation, work papers, and records to conduct the annual review and

prepare the audit report;

e. Any proposed substantive changes to tribal programs (such as changes to
eligibility or benefits) funded with net gaming revenue will, prior to their adoption, be
provided to either the General Counsel of the Tribe, or an outside law firm engaged by the
Tribe, for review to ensure that such substantive changes comply with IGRA, NIGC
regulations, the Tribe's Class II] gaming ordinance, and the Tribe's RAP;

f. The Tribe will, based on the findings of the Use of Revenues Audit described
herein, require repayment to the Tribe of all net gaming revenue paid to a member of the
Tribe outside the terms of a program and cease any payments of net gaming revenue to
vendors or contractors made outside the terms of a program. The Tribe shall take all
reasonable and necessary actions to collect repayment from Tribal members, as well as take

any other steps necessary to come into compliance with the requirements of this paragraph;

g. The Tribe will provide annual training for tribal program managers on the
policies and procedures of the tribal programs funded with net gaming revenue on which
they oversee and work to ensure that the program requirements are being adhered to by
employees. Training provided by the Tribe will include courses on subjects recommended by
the outside independent auditor to ensure that adequate corrective measures are taken to

ensure compliance with federal and tribal laws concerning the use of net gaming revenue;

h. The Tribe will allow the NIGC, for a period of up to 90 days after the
issuance of the third Use of Revenues Audit (or for such lesser period as the NIGC may
determine), upon its request, to review the audit report to confirm that provisions (a)-(g) above

have been and are being implemented.

i, The Tribe agrees to submit engagement letters for the Use of Revenues audit
to the NIGC within 30 days of their execution for each year this Settlement Agreement
remains in effect. These engagement letters shall include specific testing of casino
procurement and distribution procedures, including the review and testing of credit card
transactions, check registers, wire transfers, cash withdrawals, and expense reports. If the
NIGC has any concerns with the procedures described in the letters, the NIGC shall notify the



by this Agreement.
3. This Agreement shall be binding on the parties, their agents andrepresentatives.

4, This Agreement shall be effective on the date that it is executed by the last party to sign
the Agreement ("Effective Date").

5. The term of the remedial obligations of the Tribe and SCTGC identified in paragraphs
III.2-24 above is three years from the Effective Date.

6. The Parties agree that in the event that all of the Tribe’s gaming operations are closed due
to acts of nature, civil emergency, or pandemic, the deadlines for making any payments contemplated herein

shall be tolled, provided:
a. The Tribe shall promptly notify NIGC of the dates of any closure and reopening;

b. The deadlines shall be extended by a number of days equal to the closure(s), but shall not
extend beyond August 31, 2026. The Parties agree that any amounts tolled shall become due and payable
upon the conclusion of last day of the tolled period or upon August 31, 2026, whichever occurs first; and

c. The Tribe agrees to make a good faith effort toward alleviating any condition that may
prevent reopening of the gaming operation.

7. This Agreement may be executed in one or more counterparts and each shall constitute
an original. A signature produced by facsimile shall be deemed an original signature and shall be

effective and binding for the purposes of this Agreement.

CUO Ale DATE B~Q¥ Boa O

The Hon. Susan Lowe

Chairperson, St. Croix Chippewa Indians of Wisconsin

DATE 3/91 2020

Chairman, National Indian Gaming Commission



Taylor, former Tribal Council Member Crystal Peterson, former Tribal Council Member Carmen

Bugg, and former Tribal Council Member Stuart Bearheart, as detailed in NOV-19-02.

19. The Tribe shall seek repayment of $378,000 paid to consultant Lawrence Larsen as
detailed in NOV-19-02.

20. The Tribe shall seek repayment of $52,873.91 paid to former tribal employee Duane
Emery as detailed in NOV- 19-02.

21. The Tribe shall seek repayment of $25,954.92 paid to former tribal employee Neil
Oustigoff, Sr. as detailed in NOV-19-02.

22. The Tribe shall seek repayment of $13,333.19 paid to former tribal employee Leva
"Dino" Oustigoff as detailed in NOV-19-02.

23. The Tribe shall seek repayment of $28,893.80 from Raven Emery for payments made
on her behalf for university tuition as detailed in NOV-19-02.

24. Consistent with 25 C.F.R. Parts 556 and 558, and applicable provisions of its Tribal
Gaming Ordinance (as amended in accordance with this Agreement), within five days of the effective
date of this Agreement, the Tribe shall suspend gaming licenses for the following individuals, and
shall deny to these individuals any future gaming license applications and prohibit these individuals
from entering into a gaming-related contract or a gaming-related employment relationship with the

Tribe:

a. Former Tribal Chairman Lewis Taylor

b. Former Tribal Council member Elmer "Jay Emery"

c Former Tribal Council member Crystal Peterson

d. Former Tribal Council member Carmen Bugg

e. Former Tribal Council member Stuart Bearheart

f. Former Tribal Gaming Commission Chairman Jeff Taylor

g. Former Administrative Assistant to the Tribal Gaming Commission Chairman

Kate Wolfe Taylor
h. Former employee Duane Emery
1. Neil Oustigoff, Sr.

J. Lawrence Larsen



Tribe in writing within 15 days and the Tribe shall work in good faith with the NIGC to

remedy such concerns.

10. The Tribe agrees to submit amendments to its Tribal Gaming Ordinance to comply with
NIGC regulations within 120 days of the effective date of this Agreement.

11. The Tribe agrees that, for the first year in which this agreement is in effect, it shall file
with the NIGC quarterly reports within 30 days of the end of each quarter for the following:
distributions to the Tribe and related parties, distributions for non-operating expenses, donations (if
any), and wire transfers and payments, and other than bona fide operating expenses to individuals.
For the second and third year this agreement is in effect, the Tribe shall retain the quarterly reports

on file, and submit them to the NIGC if requested.

12. The Tribe agrees to require annual NIGC-sanctioned "use of gaming revenue"
training for three years for members of casino operations management, members of the SCTGC, and
members of the Tribal Council. Such training shall commence within six months of the effective
date of this Settlement Agreement. The Tribe shall maintain proof of training records for the

duration of this agreement.

13. The Tribe agrees to develop an ethics program within 45 days of the effective date of
this Agreement and submit to NIGC for review and comment, and require annual ethics training for
three years for members of casino management, members of the SCTGC, and members of the Tribal

Council. The Tribe shall retain proof of training for NIGC review for the duration of this agreement.

14, The Tribe agrees that the casino shall make periodic distributions of net revenues to the
tribal government pursuant to an established schedule. The Tribe shall not allow payments from the

casino for tribal expenses on an ad hoc basis.

15. The Tribe agrees to submit to the NIGC within 30 days of the effective date of this
Agreement a plan to recover from individuals listed in paragraphs 16 to 23 below improper payments

identified in NOV-19-02 and submit quarterly updates on the status of its recovery efforts.

16. The Tribe shall seek repayment of $345,632 to former Tribal Council Member Elmer
"Jay" Emery and his associated company, Rez Connections, as detailed in NOV-19-02.

17. The Tribe shall seek repayment of $86,000 payments to former Tribal Gaming
Commission Chairman Jeff Taylor and former Administrative Assistant to the Tribal Gaming

Commission Chairman Kate Wolfe Taylor as detailed in NOV- 19-02

18. The Tribe shall seek repayment of $309,000 paid to former Tribal Chairman Lewis



j. For compliance with amended gaming ordinance provision in paragraph III.10,
the Chairman shall rescind $200,000 of the suspended fine.

k. For compliance with the quarterly reports provisions in paragraph III.11, the
Chairman shall rescind $25,000 of the suspended fine for each quarterly report, $300,000 in total.

1. For compliance with the annual Use of Gaming Revenues training provisions in
paragraph III.12, the Chairman shall rescind $300,000 of the suspended fine.

m. For compliance with the annual ethics training program provisions in paragraph
III.13 the Chairman shall rescind $300,000 of the suspended fine. “
n. For substantial compliance with the prohibition of ad hoc payment provisions in

paragraph III.14, the Chairman shall rescind $300,000 of the suspended fine.

0. For compliance with improper payment recovery plan provisions in paragraph
III.15 and substantial compliance therewith, the Chairman shall rescind $100,000 of the
suspended fine.

p. For timely compliance with licensing, contract, and employment provisions of
paragraph III.23, the Chairman shall rescind $100,000 of the suspended fine

3. If the Tribe fails to meet a deadline described in paragraphs III.2 through II].24, the
Chairman may, in his sole discretion, grant an extension in writing. The Tribe is responsible for

maintaining any documentation of extensions.

4, If the Tribe fails to comply with items where no deadline is specified, the Chairman or
his designee shall notify the Tribe of the deficiency and allow the Tribe 30 days to cure the deficiency. If
the deficiency remains at the expiration of the time to cure, the Tribe shall be deemed out of compliance
with the provision.

5. If the Chairman determines that the Tribe has failed to comply with provisions of
this Agreement and portions of the suspended fine remain, the Tribe agrees to pay the remaining fine
amount within 120 days of receiving the NIGC’s assessment of noncompliance at the expiration of

the agreement.
V. Additional Terms

1. Nothing in this Agreement prevents the NIGC Chairman from issuing a separate
notice of violation, order of temporary closure, and/or proposed civil fine assessment to the Tribe for
any additional violations of IGRA, NIGC regulations, or the Tribe’s gaming ordinance, pursuant to
25 C.F.R Parts 573 and 575.

2. The Chairman may delegate within the NIGC any powers or responsibilities granted



SETTLEMENT AGREEMENT

IN THE MATTER OF:

NOTICE OF VIOLATION 19-02 ISSUED TO THE ST. CROIX CHIPPEWA INDIANS OF
WISCONSIN AND RELATED APPEAL, DIR-2019-0048

PROPOSED CIVIL FINE ASSESSMENT ISSUED TO THE ST. CROIX CHIPPEWA
INDIANS OF WISCONSIN AND RELATED APPEAL, DIR-2019-0052

This Agreement is entered into between the St. Croix Chippewa Indians of Wisconsin ("Tribe"),
through its duly authorized representatives, and the National Indian Gaming Commission ("NIGC"
or "Commission"), for the purposes of resolving the regulatory violations in Notice of Violation
19-02 (“NOV-19-02”), and the related appeals of the Notice of Violation and Civil Fine Assessment,
DIR-2019-0048 and DIR-2019-0052, respectively.

The parties by their signatures below represent and agree that they have authority to execute this

Agreement according to the terms and provisions set forth herein.

I. Procedural History

1. The Tribe is a federally recognized tribe with its headquarters located in Burnett
County, Wisconsin. Under its Tribal Gaming Ordinance, the St. Croix Tribal Council has the
authority and responsibility to manage and operate the Tribe's gaming activities under the provisions
of the Indian Gaming Regulatory Act ("IGRA"), 25 U.S.C. 2701-2721.

2. The St. Croix Tribal Gaming Commission ("SCTGC") is a duly created agency of the
Tribe and has been granted authority and responsibility by the Tribal Council to regulate the Tribe's
gaming activities.

3. The Tribe currently operates facilities at three locations: the Turtle Lake Casino located
in Turtle Lake, Wisconsin, the St. Croix Casino located in Danbury, Wisconsin and the St Croix Casino

located in Hertel, Wisconsin.

4. Under IGRA and NIGC regulations, the NIGC Chairman may issue a Notice of

Violation to any person for violations of any provision of the IGRA, NIGC regulations, or any



k. Leva "Dino" Oustigoff
1. Nicki Neilsen

IV. Procedure for Reducing or Rescinding Civil Fine Assessment

1. On or before August 31, 2023, The Tribe shall provide written notification with
supporting documentation to the NIGC once it has achieved timely compliance with provisions III.2-
24 above. Upon receipt of such written notification, the NIGC will have 90 days to complete a review

and assessment of the Tribe's compliance with each of the provisions of Section III.

2. The Chairman shail rescind the suspended civil fine described in Section III.1 above in
the following incremental amounts, pending a determination that the Tribe has complied with the relevant
provision.

a. For substantial and timely compliance with the policies and procedures

provisions in paragraph III.2, the Chairman shall rescind $100,000 of the suspended fine.

b. For substantial and timely compliance with the policies and procedures
provisions in paragraph III.3, the Chairman shall rescind $100,000 of the suspended fine.
c. For substantial and timely compliance with the existing and future government

program provisions in paragraph I!I.4, the Chairman shall rescind $100,000 of the suspended
fine.

d. For substantial and timely compliance with the existing and future consultant
contracts provisions in paragraph III.5, the Chairman shall rescind $100,000 of the suspended
fine.

e. For compliance with the vendor contracts provisions in paragraph III.6, the
Chairman shall rescind $100,000 of the suspended fine.

f. For compliance with the vendor background information provisions in paragraph
III.7, the Chairman shall rescind $100,000 of the suspended fine.

g. For compliance with the gaming contracts provisions in paragraph III.8, the
Chairman shall rescind $100,000 of the suspended fine.

h. For compliance with the Engagement Letters provisions in paragraphs III.9(b)
and (i), the Chairman shall rescind $100,000 of the suspended fine for each Letter, $300,000 in
total.

i. For compliance with the Use of Revenues audits provisions in paragraph III.9
and its subparagraphs, the Chairman shall rescind $300,000 of the suspended fine for each Audit
report, $900,000 in total, but only so long as the Tribe—timely and on its own initiative—

complies with paragraph III.9(f) for any prohibited payments.



background investigations reports for inspection by the NIGC for no less than three years from the

date the vendor relationship between the Tribe and the vendor is established.

8. The Tribe agrees to submit all future gaming related contracts to the SCTGC for its
review prior to their approval and execution, and make them available to the NIGC upon request.

The Tribe shall maintain evidence of SCTGC review and approval.

9. The Tribe agrees that, within 60 days from the Effective Date, it will engage an
outside independent auditor to perform an annual agreed upon procedures engagement in accordance
with attestation standards established by the American Institute of Certified Public Accountants
(AICPA) to evaluate the Tribe's compliance with the net gaming revenue use restrictions found in
IGRA, NIGC regulations, the Tribe's Class III gaming ordinance, the Tribe's Revenue Allocation
Plan (the “RAP”), and Tribal programs that are funded with net gaming revenue. For the avoidance of
doubt, the annual engagements described in this paragraph and its subparagraphs below (the “Use of
Revenues Audit”) is distinct in purpose and procedures from both the annual financial statements audit
required by NIGC regulations 25 C.F.R. Part 571 and the Minimum Internal Control Standards Agreed
Upon Procedures audit described in NIGC regulations 25 C.F.R. Part 543. Further, the Tribe agrees
that:

a. The outside auditor will, conduct the Use of Revenues Audit in accordance
with attestation standards established by the AICPA. The standards and procedures used in
the Use of Revenues Audit must include a detailed review of the Tribe's programs that are
funded by net gaming revenue, as defined at 25 U.S.C. § 2703(9) and 25 C.F.R. § 502.16.
This includes, but is not limited to, a review of the eligibility criteria of the programs, sample
testing of compliance within the programs, and a detailed review of each program where the

NIGC has notified the Tribe that potential violations may have occurred;

b. Within 60 days of the effective date, the Tribe will submit to the NIGC the
procedures and engagement letter that will be used to conduct the Use of Revenues Audit. If
the NIGC has any concerns with the procedures, the NIGC shall notify the Tribe in writing
within 15 days and the Tribe shall work in good faith with the NIGC to remedy such

concerns;

ec. The outside independent auditor will, for a period consisting of three fiscal
years, commencing with the fiscal year ending September 30, 2020 (or for such lesser time as
the NIGC may determine), compile an annual report setting forth the results of the Use of
Revenues Audit, which report will be made available to the NIGC upon request. The Tribe



first payment shall be made within 90 days of the effective date of this Agreement. Subsequent
payments shall be made by August 31 in each of years 2021, 2022, 2023, and 2024.

b. The remaining $3,500,000 shallbe suspended pending the Tribe's
implementation of remedial actions necessary to correct the violations set forth in NOV-19-

02, as more particularly detailed in paragraph IV.2 and its subparagraphs.

c. The Tribe shall make the civil fine payable to the U.S. Treasury and shall deliver
it to the NIGC at 1849 C St, N.W., Mail Stop #1621, Washington, D.C. 20240.

2. The Tribe shall adopt, and submit to the NIGC within 45 days of the effective date of
this Agreement for review and comment, policies and procedures covering the distribution of all
gaming revenues to ensure that such distributions comply with all applicable laws, tribal and NIGC
regulations, and the Tribe's Revenue Allocation Plan. Any changes to these policies and procedures

shall be submitted to NIGC within 30 days of their adoption for review and comment.

3. The Tribe shall adopt, and submit to the NIGC within 90 days of the effective date of
this Agreement for review and comment, policies and procedures to ensure that all distribution of
gaming revenues for travel, entertainment, marketing and promotional expenses are duly approved
by officials of the Tribe's gaming operations, are directly related to the gaming operations, and are
fully accounted for in the books and records of the Tribe's gaming operations. Any changes to these
policies and procedures shall be submitted to NIGC within 30 days of their adoption for review and

comment.

4. The Tribe shall review, and submit to the NIGC for review and comment,
documents establishing all governmental programs intended to benefit individual tribal members that
are funded all, or in part, with net gaming revenues to ensure that such programs serve a recognized
governmental purpose, have written eligibility requirements, and comply with the Tribe's Revenue
Allocation Plan. This shail occur within 30 days of the effective date of this Agreement and within

30 days from any revisions or the development of any new plans or eligibility criteria.

5. The Tribe shall submit all existing consultant contracts to the NIGC for review and
comment 45 days from the execution of this agreement and any future consultant contracts within 30

days from their execution.

6. Additionally, the Tribe shall maintain all vendor contracts for review upon NIGC

request and for use in the Use of Revenues audit described in Section III.9.

7. The SCTGC shall retain all gaming-related vendor license applications and



provision ofa tribal gaming ordinance or resolution approved by the Chairman. 25 U.S.C. §
2713(a)(1) & (a)(3), 25 C.F.R. § 573.3(a).

5. On April 11, 2019, the NIGC Chairman issued NOV-19-02 to the Tribe alleging
various counts of misuse of net gaming revenues and failure to audit contracts for gaming related

goods and services exceeding $25,000 in a fiscal year.

6. IGRA authorizes the Chairman to issue civil fines for violations of IGRA, NIGC
regulations, or tribal regulations, ordinances, or resolutions approved by the Chairman. 25 U.S.C.
2713(a)().

7. The Chairman has authority to levy and collect appropriate civil fines, not to exceed
$52,596 per violation, against a tribe, management contractor, or individual operating Indian gaming
for any violation of any provision of IGRA and NIGC regulations. 25 U.S.C.§ 2713(a)(1);

25 C.F.R § 575.4.

8. On May 9, 2019, the Chairman issued a Notice of Proposed Civil Fine Assessment to
the Tribe in the amount of $5,500,000.

9. The Tribe admits the violations set forth in NOV-19-02 covering the period between
June 2015 and September 2017.

10. The current Tribal Council was elected on June 8, 2019 and assumed control over the

tribal government on that date.

Il. Purpose of the Settlement Agreement

1. Over the course of the last several months the Tribe and the NIGC have engaged in
negotiations for the purposes of resolving the violations set forth in NOV-19-02 and modifying the
amount of the proposed fine set forth in CFA-19-02. In the course of these negotiations, the NIGC

has closely monitored steps taken by the Tribe to improve its oversight of its gaming facilities.
2. The Tribe is committed to taking all necessary additional steps to enhance the
regulatory capacity of the SCTGC, and to improve the management of its gaming operations.
III. Obligations of the Tribe and the SCTGC

1. The Tribe agrees to an adjusted civil fine in the amount of $4,500,000 to be paid

according to the schedule below.

a. The Tribe shall pay $1,000,000 in five equal installments of $200,000 each. The