NATIONAL INDIAN GAMING COMISSION 

NOTICE OF VIOLATION 

TO: Tones Martinez Band of Desert Cahuilla Indians 

Attn: Raymond Torres, Chairman 

P.O. Box 1 160 

Thermal, California 92274 

FAX: (760) 397-0300 

Torres Martinez Gaming Commission 

Attn: Trinidad Krystall, Chairperson 

3 089 Norm Niver Road 

Thermal, CA 92274 

FAX: (760) 397-8146 

Torres Martinez Gaming Commission 

Am: Alex Sanchez 

(Agent for Sentice of Process) 

3089 Norm Niver Road 

Thermal, CA 92274 

FAX: (760) 395-0415 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission (NIGC) hereby gives 

notice that the Toms Martinez Band of Desert Cahuilla Indians (Respondent or 

Tribe), located in Thermal, California has violated NIGC regulations and the 

Tribe's gaming ordinance by failing to submit a timely annual audit. 

2. Authority 

Under the IGRA and MGC regulations, the Chairman of the NIGC (Chairman) 

may issue a Notice of Violation (NOW to any person for violation of any 

provision of the IGRA, NIGC regulations, or any provision of a tribal gaming 

ordinance or resolution approved by the Chairman. 25 U.S.C. 3 271 3; 25 C.F.R. 

sj 573.3. 
3. AppIicable Federal Laws and Tribal Ordinance Provisions 

A. IGM requires an annual audit of each gaming operation and requires that 

copy of the results of the annual audit be submitted to the NIGC. 25 

U.S.C. 5 271 O(b)(2)(C). 

B. NIGC regulations require that a tribe cause to be conducted annuaI 

independent audits of the financial statements of each gaming operation on 

Indian lands and submit a copy of the audit seport(s) and any management 

letter(s) 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. 

$$ 571.12 and 571.13. 

C. NIGC regulations define "gaming operation'? as "each economic entity 

that is licensed by a tribe, operates the games, receives the revenues, 

issues the prizes and pays the expenses." A gaming operation may be 

operated by a tribe directly; by a management contractor; or, under certain 

conditions, by another person or other entity. 25 C.F.R. 8 502.10. 

D. The Torres Martinez Desert CahuiIla Indian Tribe TribaE Gaming 

Ordinance requires tl-rat an annual audit be conducted as follows: 

VII. Audit 

A. The Tribe shall cause to be conducted annually an 

independent audit of gaming operations and shall submit the 

resulting audit reports to the National Indian Gaming 

Commission within one hundred twenty (1203 days of the 

fiscal year end of the gaming operation. 

B. All gaming related contracts that result in the purchase of 

supplies, service, or concessions in excess of $25.000.00 

annually, except contracts for professional legal: and 

accounting services, shall be specifically incIuded within the 

scope of the audit that is described in subsection A. above. 

4. Role of Independent Audit Report 

Submission of the annual independent audit report by a firm of certified public 

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

gaming. A firm's ability to conduct an audit in accordance with generally 

accepted auditing standards and render an opinion on the financia1 statements 

prepared in conformity with generally accepted accounting principles provides a 

certain level of assurance as to the security of tribal gaming revenues. The audit 

report prepared and submitted on a timely basis is evidence of, among other 

things, the integrity of the gaming operation and, more specificaIIy, of the 
adequacy of the books and records, the functioning of the internal financial 

controls, and the disclosure of information having a bearing on the financial 

statements. 

5. Circumstances of the Violation 

A. Respondent is a federally recognized Indian Tribe with tribal headquarters 

in Salton Sea, California. 

B. The Tribe operated its gaming facility, Torres Mxhnez Gaming 

Corporation d/b/a Red Earth Casino, during all or part of 2007. 

C. IGRA requires that tribes submit annual audits of each gaming facility. 25 

U.S.C. 8 27 1 Q(b)(2HC). NIGC reguIations require that a tribe cause to be 

conducted an annual independent audit of the financial statements of each 

gaming operation on Indian lands and submit a copy of the audit report(s) 

and management letter($) setting forth the results of the annual audit($) to 

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

year. 25 C.F.R. §§ 571.12, 571.13. 

D. The Torres Martinez Band of Cahuilla Indians Tribal Gaming Ordinance 

requires that m annual audit be conducted annually and that the resulting 

audit reports be submitted to NIGC within one hundred twenty (1 20) days 

of the fiscaI year end of the gaming operations. Torres Martinez Desert 

CahuiIla Indian Tribe, Tribal Code CIass 11 and Class 111 Gaming 

Ordinance, Resolution #TM-04-0 8-005 (Amended April 1 2,2008). 

E. The fiscal year for the: gaming operation named in this violation ended 

December 3 1,2007. 

F. The audit report for the facility named in this violation was due to NIGC 

on or before April 29,2008. 

G. NIGC received the audit report for this facility on May 30,2008, 3 1 days 

late. 

H. The Tribe is in violation of NIGC regulations and its gaming ordinance for 

faiIure to submit a timely annual independent audit report. 

6. Measures Required to Correct the Violation 

Audits must be received within 120 days of the end of a gaming operations fiscal 

year. 25 C.F.R. tj 57 1.13. While there is no remedial action that can correct the 

late submission of the 2007 audit, improved controls to enswe timely compIiance 

of the next audit should be put in place. 
Within thirty (30) days after service of this Notice of VioIation, Respondent may 

appeal to the full Commission under 25 C.F.R. Part 577 by submitting a notice of 

appeal, and, if desired, request for hearing to the National Indian Gaming 

Commission, 1441 L Street NW, Ninth Floor, Washington, DC 20005. 

Respondent has a right to assistance of counsel in such an appeal. A notice of 

appeal must reference this Notice of Violation. 

Within ten (10) days aRer filing a notice of appeal, Respondent must file with the 

Commission a supplemental statement that states with particularity the relief 

desired and the grounds therefore and that incIudes, when available, supporting 

evidence in the form of afidavits. 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 genera1 nature of their expected 

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

waives its right to an oral hearing and instead elect to have the matter determined 

by the Commission solely on the basis of written submissions. 

8. Fine-Submission of Infomation 

The violation cited above may result in the assessment of a civil fine against 

Respondent in an amount not to exceed $25,000 per violation per day. Under 25 

C.F.R. 575.5(a), Respondent may submit written information about the violation 

to the Chairman within fifteen (1 5) days after service of this notice of violation 

(or such longer period as the Chairman may grant for good cause). The Chairman 

information submitted in determining the facts surrounding the 

of the civil fine, if any. 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent b facsimile transmission and certified 

U.S. mail, return receipt requested, en this -- d day of August, 2008 to: 

Torres Martinez Band of Desert Cahuilla Indians 

Attn: Raymond Torres, Chairman 

P.O. Box 1 160 

Thermal, California 92274 

FAX: (760) 397-0300 

Toms Martinez Gaming Commission 

Attn: Trinidad Krystall, Chairperson 

3089 Norm Niver Road 

Thermal, CA 92274 

FAX: (760) 397-8146 

Torres Martinez Gaming Commission 

Attn: Alex Sanchez 

(Agent for Service of Process) 

3089 Norm Niver Road 

ThemaI, CA 92274 

FAX: (760) 395-0415