PROPOSED CIVIL FINE ASSESSMENT 

Ref: CFA-06-08 

BY CERTIFIED MAIL / RETURN RECEIPT REQUESTED 

To: Marc E. Dunn 

5 5 5 West Southern Hills Rd. 

Phoenix, Arizona 85023 

Marc E. Dunn 

President 

Oklahoma Management Enterprises, Inc. 

1006 W. Adams Street 

Phoenix, Arizona 85007 

Marc E. Dunn 

President 

Native American Enterprises & Resource Management, Inc. 

1006 W. Adams Street 

'Phoenix, Arizona 85007 

WAS, Inc. 

Arizona Statutory Agent for Oklahoma Management Enterprises, Inc.; Native American 

Enterprises & Resource Management, Inc.; Hybrid Enterprises, L.L.P.; S.S.E. & L., Inc.; 

& Stratus Properties, L.L.C. 

4201 N. 21'' Street 

Suite 100 

Phoenix, Arizona 8501 6 

Corporation Service Company 

Oklahoma Registered Agent for Right Source Marketing, L.L.C. .- - - -l-ZyJ$yx&k~ - - -- 

Oklahoma City, Oklahoma 73 139 

Marc E. Dunn 

President 

S.S.E. & L, Jnc. 

1006 W. Adams Street 
Phoenix, Arizona 85007 

Marc E. Dunn 

President 

Dunn plastering & Stucco, Inc. 

1006 W. Adams Street 

Phoenix, Arizona 85007 

Marc E. Dunn 

President 

Wolf Tree Development Company, hc. 

1006 W. Adams Street 

Phoenix, Arizona 85007 

1. Under the authority of 25 U.S.C. 5 2713(a) of the Indian Gaming Regulatory Act 

("IGRA") and National Indian Gaming Commission ("NIGC') Regulations, 25 C.F.R. 

Part 575, the Chairman of the NIGC hereby provides notice of his intent to assess a civil 

fine against Marc Dunn, Oklahoma Management Enterprises, Inc., and Native American 

Enterprises & Resource Management, Inc. (hereafter referred to as "Dunn," "OME," 

'Native American Enterprises," and "Respondents17'), manager of the Quapaw Casino & 

R.V. Resort (hereafter referred to as the "Quapaw Casinoy'), for violation of IGRA, 25 

U.S.C. 8 2711, and NIGC regulations, 25 C.F.R. 5 533 and $573.6(a)(7), as set forth in 

detail in Notice of Violation, Reference NOV-06-08, dated March 8,2006, a copy of 

which is attached. 

2. Under 25 U.S.C. 2713(a) and 25 C.F.R. $575.4, the Chairman may assess a 

civil fine, not to exceed $25,000 per violation per day, 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. 9 573.3. The Quapaw Casino is owned by the Quapaw 

Tribe of Oklahoma (hereafter referred to as "the Tribey') and is located on tribal lands in 

Miami, Oklahoma. The Respondents include management contractors that have managed 

and operated the Quapaw Casino since January 20,2001 until April 4,2005 and 

companies wholly owned by Dunn that substantially benefited hm his non-compliance 

with the law. 

In arriving at the proposed civil fine, the Chairman considered the factors prescribed in 

25 C.F.R. 5 575.4, as follows: 

I. Economic benefit of noncompliance 

1 Respondents also include the following companies, that are wholly owned by Marc E. Dunn, were involved with 

the Quapaw casino, and substantially benefited fiom Dunn, OME, andlor Native American Enterprises' failure to 

comply with IGRA: S.S.E. & L. Inc.; Dunn Plastering & Stucco, Inc.; Wolf Tree Development Company, Inc.; 

Hybrid Enterprises, LLP; Right Source Marketing, LLC; and Stratus Properties, LLC. 
The economic benefit to the Respondents is partially reflected in the 

financial reports of the Quapaw Casino prepared by an accountant for the 

Tribe. These documents reflect that the Respondents received 

approximately $3,825,980 in management fees during the period of 

January 20,2001 to April 4,2005. 

Financial reports of the Quapaw Casino prepared by an accountant for the 

Tribe also reveal that Right Source Marketing received commissions of 

$2,470,474 in FY 2003 and $286,058 in FY 2004, for a total benefit to the 

Respondent of $2,756,532. The audit reports do not specify the economic 

benefit to Right Source Marketing fiom the placement of gaming 

machines in the Quapaw Casino during FY 2001 and 2002, as the audits 

for such years do not provide details of commissions paid to game 

vendors. 

Thus, the economic benefit to Dunn, OME andlor Native American 

Enterprises reflected in the audit reports, is at least $6,582,512. 

An independent accounting Ws report also addresses the economic 

benefit derived by Dunn, OME, and Dunn's other companies. 

Specifically, the report indicates the OME and Wolftree Development 

Company, Inc. received $5,086,330.48 fiom March 8,2001 through April 

4,2005. In addition, Right Source Marketing was paid approximately 

$5,399,429.66 in gaming machine commissions from October 6,2001 

through March 24,2005. The report also concludes that other companies 

owned by Dm, including S.S.E.&L. Inc., Stratus Properties, L.L.C., and 

Dunn Plastering & Stucco, Inc. received payments totaling $305,183.94. 

Consequently, the total economic benefit to the Respondents exceeds ten 

million dollars. 

11. Seriousness of the violation 

This is a serious and substantial violation of IGRA and NIGC regulations. 

IGRA requires that tribes obtain the approval of the Chairman of the 

NIGC to enter into a management contract for the operation and 

management of a gaming operation. 25 U.S.C. 5 271 1. NIGC regulations 

reiterate this requirement, mandating that "Subject to the Chairman's 

approval, an Indian tribe may enter into a management contract for the 

operation of a class II or class 111 gaming activity." 25 C.F.R. $ 533.1. 

Moreover, NIGC regulations explicitly provide that it is a substantial 

violation for a management contractor to operate a gaming operation 

without a contract that the Chairman has approved. 25 C.F.R. 573.6 

(aI(7). 
From January 20,2001 through April 4,2005, the Respondents have 

managed the Quapaw Casino without an approved contract. Such actions 

threaten the integrity of Indian gaming by circumventing the management 

contract review process set forth in IGRA, 25 U.S.C. 27 1 1, and NIGC 

regulations, 25 C.F.R. Part 533, to ensure the suitability of individuals and 

entities involved in Indian gaming. As a consequence, operation of the 

Quapaw Casino by Dunn, OME, and/or Native American Enterprises 

without an approved management contract threatened the NIGCYs ability 

to achieve its Congressionally mandated goals of shielding the Tribe fkom 

organized crime and other corrupting influences; ensuring that the Tribe is 

the primary beneficiary of the gaming operation; and ensuring that gaming 

is conducted fairly and honestly by both the operator and players. See 25 

U.S.C. 2702(2). 

m. History of violations 

Drum, OME, and Native American Enterprises do not have a history of 

prior violations. 

W. Negligence or willfhlness 

Dunn and OME have submitted various agreements to the NIGC for 

review as management contracts, including several agreements between 

OME and the Tribe andor the Quapaw Gaming Corporation ("QGC'3.2 , Such actions indicate that Dunn, OME, andfor Native American 

Enterprises understood it was managing the Quapaw Casino and 

recognized the need to obtain governmental approval before such 

activities would be lawfil. The fact that the Respondents knowingly 

disregarded this mandate of IGRA, by choosing to operate the Quapaw 

Casino without an approved management contract and profit thereby 

demonstrates that this was a willll violation of federal law. 

V. Good faith. 

The Chairman may adjust a fine based on the degree of good faith of the 

Respondents in attempting to achieve rapid voluntary compliance after a 

Notice of Violation has been issued. This factor is inapplicable in this 

instance, because Quapaw Tribe severed all business ties with Dunn, 

OME, and Native American Enterprises before April 8,2005; admitted 

that Dunn, OME, and Native American Enterprises assumed management 

of the Quapaw Casino on January 20,2001; admitted that the parties acted 

pursuant to the August 29,2001 and June 26,2003 management 

agreements, which formalized the arrangement whereby Dunn, OME 

2 Marc E. Dunn, as CEO of Grand Lake Management, Inc. ("Grand Lake"), also submitted to the NIGC an 

agreement between Grand Lake and the Seneca-Cayuga Tni of Oklahoma for management contract review. 

4 
andlor Native American Enterprises managed the casino, and that such 

agreements were not approved by the Chairman of the NIGC. See 

Stipulated Notice of Violation and Agreed Civil Fine Assessment, dated 

April 11,2005,7 9(A). 

PURSUANT to 25 U.S.C. 5 27 13(a) and 25 C.F.R. 575.4, fines for continuing 

violations may be assessed in an amount up to $25,000 (twenty five thousand) per day of 

noncompliance. Thus, the Chainnan has the authority to assess a fine in the amount of $25,000 

per day upon the Respondents and has determined that a violation occurred each day that the 

Respondents managed the Quapaw Casino without an approved contract, beginning on the day 

that unauthorized management began, January 20,2001, and continuing for each day that the 

noncompliance cited in the Notice of Violation continued, that being through April 4,2005. 

Therefore, the Chairman could potentially assess the Respondents a fine of $35,000,000 (thirtyfive million dollars). 

However, the Chairman, havhg carefully reviewed the above factors, has determined that 

a fine in the amount of $ 11,000,000 (eleven million) is assessed on the Respondents for 

managing the Quapaw Casino without an approved management contract fiom January 20,2001 

through April 4,2005. This fine represents the known economic benefit of noncompliance 

realized by the Respondents as well as an appropriate balancing of the other factors cited above, 

including the fact the matter at hand constitutes a substantial violation of IGRA. 

Under 25 C.F.R. $577.3, the Respondents may appeal the proposed fine to the full 

Commission within thirty (30) days after service of this Notice of Proposed Civil Fine 

Assessment, by submitting a notice of appeal to the National Indian Gaming Commission, 1441 

L St., N.W., Suite 9100, Washington, D.C. 20005. The Respondents have the right to assistance 

of counsel in such an appeal. A notice of appeal must reference this Notice of Proposed Civil 

Fine Assessment. Within ten (10) days after filing a notice of appeal, the Respondents must file 

with the Commission a supplemental statement that states, with particularity, the relief desired 

and the grounds therefore and that includes, when available, supporting evidence in the form of 

affidavits. If the Respondents wish to present oral testimony or witnesses at the hearing, they 

lemental statement. The request to present oral 

s of proposed witnesses and the general nature of 

a closed hearing is requested and why. The Respondents 

ead elect to have the matter determined by the 

National Indian Gaming Commission 
Certificate of Service 

I certify that this Civil Fine Assessment was sent by certified mail, return receipt requested, this 

12th day of April 2006 to: 

Marc E. Dunn 

555 West Southern Hills Rd. 

Phoenix, Arizona 85023 

Marc E. Dunn 

President 

Oklahoma Management Enterprises, Inc. 

1006 W. Adams Street 

Phoenix, Arizona 85007 

Marc E. Dunn 

President 

Native American Enterprises & Resource Management, Inc. 

1006 W. Adams Street 

Phoenix, Arizona 85007 

WAS, Inc. 

Arizona Statutory Agent for Oklahoma Management Enterprises, Inc.; Native American 

Enterprises & Resource Management, Inc.; Hybrid Enterprises, L.L.P; S S E & L, Inc.; & 

Stratus Properties, L.L.C.. 

4201 N. 21St Street 

Suite 100 

Phoenix, Arizona 850 16 

Corporation Service Company 

Oklahoma Registered Agent for Right Source Marketing, L.L.C. 

11 5 SW 8gfh Street 

Oklahoma City, Oklahoma 73 139 

Marc E. Dunn 

President 

S.S.E. & L, Inc. 

1006 W. Adams Street 

Phoenix, Arizona 85007 

Marc E. Dunn 

President 

Dunn Plastering & Stucco, Inc. 

1006 W. Adams Street 
Phoenix, Arizona 85007 

Marc E. Dunn 

President 

Wolf Tree Development Company, Inc. 

1006 W. Adams Street 

Phoenix, Arizona 85007