National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: John Feliz, Jr., Chairperson (Agent for Service of Process) 

Coyote Valley Band of Pomo Indians 

7701 North State Street 

P.O. Box 39 

Redwood, CA 95470 

FAX: (707) 485-1247 

1. Notification of Violation 

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

that the Coyote Valley Band of Pomo Indians ('Respondent" or "Band"), located in 

Redwood, California, is in violation of the Indian Gaming Regulatory Act ("IGRA), 

NIGC regulations and its gaming ordinance for failure to timely submit an annual audit 

and failure to submit timely quarterly fee statements and fee payments. 

2. Authority 

Under regulations of the National Indian Gaming Commission, the Chairman of the 

NIGC ("Chairman") may issue a Notice of Violation ('WOV") 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 C.F.R. 4 573.3. 

3. Apvlicable Federal and Tribal Laws 

A. IGRA requires an annual audit of each gaming operation and requires that a copy 

of the results of the annual audit be submitted to the NIGC. 25 U.S.C. 

§ 27 1 O(b)(2)(C). 

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

audits of the financial statements of each gaming operation on Indian lands and 

submit a copy of the audit report(s) setting forth the results of the annual audit(s) 

to the NIGC within 120 days after the end of each fiscal year. 25 C.F.R. 

$8 571.12 and 571.13. 
C. NIGC regulations require that each gaming operation on Indian lands compute 

quarterly statements determining the amount of fees owed to the Commission. 

The quarterly statements are due on March 31, June 30, September 30, and 

December 31 of each calendar year the gaming operation is subject to the 

jurisdiction of the NIGC. The quarterly statements shall be transmitted to the 

Commission and arrive no later than the due date. 25 C.F.R. $9 5 14.l(c) and 

5 14.1 (~)(2)-(4). 

D. NIGC regulations require each gaming operation to remit to the Commission the 

fees due each quarter with the quarterly statement. 25 C.F.R. $ 514.1(~)(5). 

E. Section 1 of the Coyote Valley Gaming Ordinance of 1994 ("Ordinance"), the 

Tribe's approved gaming ordinance, provides that the purpose of the Ordinance is 

to develop, operate and regulate gaming in conformity with the IGRA and 

regulations promulgated thereunder. 

F. Section 4 (j)(10) of the Ordinance requires the Gaming Commission to comply 

with any reporting requirements established under IGRA. 

G. Section 4 (k)(l) of the Ordinance requires the Gaming Commission to comply 

with any reporting requirements under IGRA and regulations promulgated 

thereunder. 

H. Section 8 of the Ordinance requires that annual auditing by a recognized 

independent accounting firm shall be conducted of each gaming activity and the 

results thereof reported, to the extent required by law, to the NIGC. 

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 Indian gaming. A 

firm's ability to conduct an audit in accordance with generally accepted auditing 

standards and render an opinion on the financial statements prepared in conformity with 

generally accepted accounting principals 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 

specifically, of 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. 

5. Role of Quarterly Fees and Quarterly Statements 

The annual fees collected by the NIGC in order to fund the agency's work are based upon 

the quarterly worksheets submitted by Indian gaming operations. NIGC must set a fee 

rate sufficient to find its annual budget, yet may not exceed the fee cap set by Congress. 
Thus, it is imperative that the NIGC receive worksheets from the gaming operations in a 

timely manner so that the NIGC is able to set accurate preliminary and final fee rates. 

6. Circumstances of the Violation 

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

Redwood, California. 

B. Respondent operated its gaming facility, Shodakai Casino, during all or part of the 

following years: 2000,2002,2003,2004 and 2005. 

C. The NIGC received an untimely audit report for the fiscal year ending December 

3 1,2004. The audit report was due to the NIGC on April 29,2005,120 days after 

the end of the Tribe's fiscal year. The audit report was received by the NIGC on 

January 6,2006. 

D. The NIGC has received untimely quarterly statements and fee payments for the 

quarters up to December 3 1,2004 as follows: 

Quarter: Due: Received: 
7. Measures Required to Correct these Violations 

There is no way to rectify the late submission of the 2004 audit. NIGC regulations 

require that the audit be received within 120 days of the end of the gaming operation's 

fiscal year. 25 C.F.R. 8 571.13. 

There is no way to rectify submission of late quarterly statements and fee payments. The 

regulations require that the quarterly statement and fee payment be transmitted to the 

Commission to arrive no later than the due date. 

8. Avveal 

Within 30 (thirty) days after service of this Notice of Violation, 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 after 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 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, 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 submissions. 

9. Fine--Submission of Information 

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. fj 575.5(a), 

Respondent may submit written information about the violation to the Chairman within 

15 days after service of this notice of violation (or such longer period as the Chairman of 

the Commission may grant for good cause). The Chairman shall consider any 

information submitted in determining the facts surrounding the violation and the amount 

of the civil fine, if any. 
A/' Chairman 

National Indian Gaming Commission 

0 . HELGEMO 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile and mailed on this 18th 

day of January, 2006 to: 

John Feliz, Jr., Chairperson (Agent for Service of Process) 

Coyote Valley Band of Porno Indians 

7701 North State Street 

P.O. Box 39 

Redwood, CA 95470 

FAX: (707) 485-1247