National Indian Gaming Commission 

Settlement Agreement 

1. This settlement agreement (the Agreement) is entered into by and between the 

Cheyenne River Sioux Tribe (the Tribe), a federally recognized Indian tribe, and 

the Chairman of the National Indian Gaming Commission (the Chairman) related 

to the non-submission of financial statements and audit reports in violation of the 

Indian Gaming Regulatory Act (IGRA), 25 U.S.C. 2701 et seq., and National 

Indian Gaming Commission (NIGC) regulations, 25 C.F.R. § 501 et seq. 

Circumstances of Violation 

2. The Cheyenne River Sioux Tribe is a federally recognized Indian tribe with tribal 

headquarters in Eagle Butte, South Dakota. 

3. The Tribe's operated its gaming operation, Cheyenne River Sioux Tribe Bingo 

Operations, during all or part of 2011 to the present. 

4. Based on the most recent financial statements and audit submitted to the NIGC, 

for fiscal year 2010, the fiscal year for the Tribe's Bingo Operations runs from 

October 1 to September 30. 

5. IGRA requires that tribes submit annual audits of each gaming operation. 25 

U.S.C. § 2710(b)(2)(C). NIGC regulations require that a tribe engage an 

independent certified public accountant to provide annual independent audits of 

the financial statements of each gaming operation located on Indian lands for each 

fiscal year. 25 C.F .R. § 571. l 2(b ). The NIGC regulations furtller require a tribe 

submit a copy of the financial statements and audits, with any management 

letter(s) and other documents/reports setting forth the results of the annual audit(s) 

to the NIGC within 120 days after the end of each gaming operation's fiscal year. 

25 C.F.R. §§ 571.13. 

6. Therefore, the financial statement and audit for the Tribe's gaming operations for 

fiscal year 2010-11 were due to the NIGC on or before January 30, 2012 (the next 

business day following January 28, 2012). The financial statement and audit for 

the T~ibe's gaming operations for the fiscal year 2011-12 were due to the NIGC 
on or before January 28, 2013. The financial statement and audit for the Tribe's 

gaming operations for fiscal year 201 2-13 were due to the NIGC on or before 

January 28, 2014. The financial statement and audit for the Tribe's gaming 

operations for fiscal year 2013-14 were due to the NIGC on or before January 28, 

2015. Lastly, the financial statement and audit for the Tribe's gaming operations 

for fiscal year 2014-15 were due to the NIGC on or before January 28, 2016. 

7. The Tribe did not submit the 20l0-11 fiscal year financial statement and audit to 

the NIGC by January 30, 2012, and has yet to submit the documents. 

8. Tribe did not submit the 2011-12 fiscal year financial statement and audit to the 

NIGC by January 28, 2013, and has yet to submit the documents. 

9. Tribe did not submit the 2012-13 fiscal year financial statement and audit to the 

NIGC by January 28, 2014, and has yet to submit the documents. 

10. Tribe did not submit the 2013-14 fiscal year financial statement and audit to the 

NIGC by January 28, 2015, and has yet to submit the documents. 

11. Tribe did not submit the 2014-15 fiscal year financial statement and audit to the 

NIGC by January 28, 2016, and has yet to submit the documents. 

12. NIGC regulations allow operations with less than $2 million gross gaming 

revenue during the prior fiscal year to satisfy the annual audit requirement by 

having an independent certified public account complete a review of the gaming 

operation's financial statements and services, so long as the Tribe has complied 

with audit submission requirements for the past three years. 25 C.F.R. 

§ 571.12(c). 

13. On April 2, 2013 , the Tribe requested that the Commission waive the requirement 

of audit submission compliance for the previous three years and allow it to submit 

reviewed financials in lieu of audited financials for fiscal year 2011 and 2012. 

14. On July 30, 2013, the Commission issued a letter granting the Tribe's request to 

submit reviewed financial statements for fiscal year ended 2012. 

15. The Tribe has not submitted either an audit or reviewed financial statements for 

the 2012-13 fiscal year. 

16. On October 23, 2014, NIGC issued a Letter of Concern with a required response 

date of November 21, 2014, to then Tribal Chairman Kevin Keckler for failure to 

submit the required financial statements and audits for fiscal years 201 1, 2012, 

and 2013. 

17. The Tribe did not respond to the October 23, 2014 Letter of Concern or submit 

the required financial statements and audits. 
18. On February 11 , 2015, NIGC issued another Letter of Concern with a required 

response date of March 11, 2015, to the new Tribal Chainnan, Harold Frazier, for 

failure to submit financial statements and audits for fiscal years 2011, 2012, 2013, 

and 2014. 

19. By letter received April 13, 2015, Chairman Frazier requested a waiver to submit 

reviewed financials for fiscal years 2011, 2012, and 2013 with a full audit to be 

performed in the spring of2015 and completed no later than the summer of2015 

for fiscal year 2014. 

20. By letter dated April 15, 2016, Chairman Frazier informed NIGC that the audits 

for their Class II operation would be completed and sent to NIGC within the 

week. 

21. On April 25, 2016, NIGC Region Director, Linda Durbin sent an email to 

Chairman Frazier notifying him that the audited financial statements had not yet 

been received and reminding him of the Tribe's responsibility to submit full 

audited financial statements for FY 2011, 2012, 2013, 2014, and 2015. 

22. To date, no audited or reviewed financial statement has been received from the 

Tribe since February 16, 2011. 

Recitals 

23 . The Chairman has authority to levy and collect appropriate civil fines, not to 

exceed $25,000 per violation, against the tribal operator of an Indian game or a 

management contractor engaged in gaming for any violation of any provision of 

IGRA and NIGC regulations. 25 U.S.C. § 2713(a)(l); 25 C.F.R. § 575.4. "If 

noncompliance continues for more than one day, the Chairman may treat each 

daily act or omission as a separate violation." 25 C.F.R. § 575.4(a)(2). 

24. The Tribe wishes to enter a settlement agreement with the Chairman to avoid the 

issuance of a notice of violation. 

Terms of Settlement Agreement 

25. The Tribe admits the facts set forth in the "Circumstances of Violation" section of 

this agreement~ agrees that the NIGC possesses jurisdiction over this matter; and 

agrees to comply with the terms of this agreement. 

26. The Tribe agrees to participate in an NIGC sponsored training withinl 8 months of 

the execution of this Agreement. Compliance with this Paragraph can be 

demonstrated by at least one member of the Cheyenne River Sioux Tribal Gaming 

Commission or Business Committee attending any training presented by the 

NIGC. 
27. The Tribe agrees to submit by July 31, 2016, the gaming operation's financial r>lf 

statements and documentation of a formal review by an independent auditor for '--;fr" 

fiscal ye~rs ended ) 011, 201 ~' and 2013 . . €Jn J ~~ 2..8'> ~ (r;b{_ ~ (<}_ 

°dtJ.)fY)• ifed ·t- 1_,..,tL/\<!. · <~..f ~pCHh. ~~II) '2...o 1"2- oL-v-'Q_ "3. ~l;t.JI:_ 28. The Tribe agrees to submit by September 30, 2016, the gaming operation's 

financial statements and docwnentation of a formal review by an independent 

auditor for fiscal year ended 2014. 

29. The Tribe agrees to submit by November 30, 2016, the gaming operation's 

financial statements and audit by and independent auditor for fiscal year ended 

2015. 

30. In exchange for the terms, conditions, and understandings set forth in this 

agreement, the Tribe waives its right to any administrative review of this 

settlement (25 C.F.R. §§ 584, 585), submit information prior to the issuance of a 

civil fine assessment (25 C.F.R. § 575.5), seek the reduction or waiver of a civil 

fine (25 C.F.R. § 575.6), and the right to seek judicial review (25 U.S.C. § 2714). 

31. In exchange for the terms, conditions, and understandings set forth herein, the 

Tribe hereby waives its rights as specified in paragraph 30 of this Agreement as 

well as any other right to seek judicial review or otherwise challenge or contest 

the Chairman's actions under this Agreement, including the right to have the 

Chairman provide his written analysis of the factors to be considered in assessing 

a civil fine set forth under 25 C.F.R. § 575.4. 

32. The Chairman agrees upon execution of this agreement that the NIGC shall not 

institute further proceedings or actions or assess any additional sanctions against 

the Tribe, the Cheyenne River Sioux Tribal Gaming Commission or any other 

entity of the Tribe, or any of the officers and/or directors of such tribal entities, 

for any actions arising out of the circwnstances of this agreement unless the Tribe 

fails to comply with this Agreement. 

33. The Tribe shall pay a civil fine of $60,000. This fine shall be suspended as long ns 

the Tribe complies with the terms of this Agreement. The Chairman agrees that if 

the Tribe fully complies with the terms of this Agreement, the suspended fine will 

be waived. 

34. If the Tribe breaches any of the provisions of this Agreement, Tribe agrees and 

consents that a civil fine of $60,000 will become fully due and payable on the date 

of the breach. In such circumstance, the NIGC shall issue a written notice (also 

known as a demand letter) to Tribe pursuant to NIGC debt collection regulations, 

25 C.F.R. § 513. The Tribe agrees that the NIGC and/or U.S. Department of 

Treasury may proceed with debt collection of the $60,000 civil fine (less amounts 

already paid) against the Tribe, and may assess interest, penalties and 

administrative costs from the date of breach of this Settlement Agreement, as 

provided in 25 C.F.R. § 513.5. In such circumstance, the Tribe waives any rights 

to an oral hearing under 25 C.F.R. § 513 .6, but the NIGC shall provide Tribe with 
a reasonable opportunity to submit written material supporting a request to 

reconsider the determination that Tribe is in breach of this Agreement or to 

challenge the method by which the NIGC calculated the debt. 

35. This agreement shall not become public unless and until it is accepted and signed 

by the Chairman of the NIGC. However, upon its acceptance by the Chairman of 

the NIGC, and bis signature, the parties agree that this agreement will become 

public. 

Additional Covenants 

36. The parties stipulate that this Agreement shall be deemed a final order of the 

Commission and a final agency action pursuant to 25 C.F .R. § 580.10. 

37. This Agreement constitutes the entire agreement between the Chairman and the 

Tribe and supersedes all prior verbal or written agreements and understandings 

between the parties related to the subject matter hereof. No wa1rnnties, 

representations, covenants, or agreements shall be binding upon any party except 

as set forth herein. Any modification or waiver of any term of this Agreement, 

including the modification or waiver of term, must be in writing and signed by the 

parties. 

38. The Chairman and Tribe expressly agree and acknowledge that time is of the 

essence in the Agreement. The recitals herein and above shall be binding upon the 

parties, their agents, heirs, personal representatives, successors, and assigns. 

39. A signature produced by facsimile shall be deemed to be an original signature and 

shall be effective and binding for purposes of the Agreement 

Date: 

ission 

Date: