SAULT STE. MARIE, Mich. (WBUP/WJMN) — After Sault Ste. Marie Tribe of Chippewa Indians staff failed to make a class action settlement payment, the tribe’s board has accepted the resignations of four top executives.
These resignations include the tribe’s Chief Executive Officer, Chief Financial Officer, General Counsel and the Kewadin Casinos Chief Financial Officer. They were accepted with a vote of 11-1, with only Aaron Payment voting ‘no.’
“You guys are probably wondering what’s going on,” said Tribal Chair Austin Lowes at the May 13 special meeting. “We accepted the resignations in response to the ransomware and JLLJ [Development].”
Austin Lowes speaks out on the resignations announced at the tribe’s May 13 special meeting.
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Lowes mentioned two separate incidents in his statement: an attack on the tribe’s data by a ransomware group and a class action settlement for two casino developments that were never built. The tribe’s press release on the resignations only mentioned the settlement.
The suit saw a conflict between the tribe and its former partners, JLLJ Development and Lansing Future Development II over proposed casino locations in Romulus and Lansing.
Under the previous agreement with the developers, Kewadin Casinos was obligated to pay its former partner a total of up to $35 million, with $30 million guaranteed.
Of the total amount due, $25 million was paid in 2023. An additional $5 million was due May 1, 2025 but the payment was not made on time.
The tribe’s Wednesday release states, “As a result of this mistake, the board accepted the resignation of four staff members at its May 13 board meeting.”
“At this time, we’d like to thank those individuals for their years of service to the Sault tribe,” Lowes said. “There’s nothing else to say; I’m not interested in running anyone through the mud. I appreciate what they provided the tribe but we’re moving in a different direction at this time.”
An amended agreement has been reached, which now requires Kewadin Casinos to pay an additional $5 million, totaling up to $10 million.
The meeting saw the board unanimously rescind the now-resigned executives’ power over tribal funds effective immediately.
Another motion rescinding any prior authorization to negotiate the outcome of the settlement, which was previously given to the now-resigned general counsel. It further gave Lowes the power to “execute any and all documents necessary to carry out the intent of this resolution.”
It passed 10-2 with Aaron Payment and Isaac McKechnie voting ‘no.’
Interim appointments have been unanimously approved as follows:
- Jessica Dumback, CEO
- Bill Connolly, CFO
- Ryan Mills, General Counsel
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