Casino Broke Rules, Panel Says Tulalip Tribe’s Profits Misspent, According To Commission Probe

More than $100,000 in profits from the Tulalip Tribe’s gambling casino was spent in ways barred by its operating agreement with the state, an investigation by the state Gambling Commission and the Tulalip Gaming Agency has found.

Thousands of dollars that were to have gone to charities apparently went to cover personal expenses of some tribal members - in one case the alleged purchase of illegal drugs, officials said Wednesday.

More than $126,000 was spent in ways that allegedly violate the state-tribe compact governing casino gambling operations. And the investigation found at least one instance where tribal charity records had been altered.

“We believe it’s a very serious situation … (an) attempt by some people to basically hide where the money was going,” said commission director Frank Miller.

Under its agreement with the state, the tribe agreed to provide money from its Marysville casino operations to eligible local charities, which are narrowly defined by the compact and tribal ordinance.

Instead, much of the money went to individuals, a use barred by the compact.

In April, state gambling officials formally alleged the Tulalip Tribes are in violation of the agreement. Possible sanctions include a five-day suspension of casino operations or a fine equivalent to net revenues for five days.

In a prepared statement, tribal officials Wednesday denied any wrongdoing. In fact, they said, the tribes donated more to charity than was required.

Tribal officials figure the Tulalips have paid out about $800,000 in charitable contributions since the casino opened in 1992. That’s well over the amount required and mostly came from funds not covered by the gambling compact, says Stan Jones Sr., the tribal chairman.

The money that went to individuals covered such things as rent, funeral expenses and medical needs, Jones said, adding that he was “really disappointed” one donation may have been used to buy drugs.

“You just don’t know what the people are going to do with the money once they get it,” he said. “Usually, we give a donation and they’re supposed to pay their rent. Most of them do.”

The investigation began in September, when a tribal member was arrested for alleged cocaine possession and Snohomish County sheriff’s detectives found 17 $100 bills in her purse.

Kimberly Taylor-Simpson, 34, of Marysville allegedly told detectives she had been given the cash by the Church of God on the Tulalip Reservation, and was to use it to care for her children.

Taylor-Simpson, charged in Snohomish County Superior Court with cocaine possession, is being sought on warrants for failing to make court appearances.

An investigation by tribal gaming agents found that Taylor-Simpson received $2,700 in casino charity funds from the church.

She is the sister of Calvin Taylor and daughter-in-law of Dawn Simpson, both members of the tribe’s board of directors. Dawn Simpson, Stan Jones’ sister, also heads the Services Committee, which administers funds from charitable tables at the Tulalip Casino.

State regulators say they found evidence that Dawn Simpson altered tribal records concerning sums Taylor-Simpson and others were authorized to receive.

Dawn Simpson could not be reached for comment Wednesday. In February, she told investigators that payments were sometimes authorized for churches to help specific individuals. She said money is given to organizations instead of individuals to prevent tribal politics from influencing distribution.

“Sometimes if the board knew exactly who was getting what, they would say no,” Simpson told investigators.

Between November 1995 and September 1996, the Tulalip Tribes made 27 donations to the Church of God totaling more than $110,000, documents show.

But many of the donations carried specific instructions on how they were to be distributed, according to the state.