Former Tribal Councilor of the Seneca Nation of Indians and Vice Chairman of the Board of Directors of the Seneca Gaming Corporation Indicted

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a 13-count indictment charging Bergal L. Mitchell, III, 37, of Gowanda, New York, with one count each of: bribery; theft by an officer or employee of a gaming establishment on Indian land; wire fraud; and conspiracy; as well as eight counts of money laundering. The theft and wire fraud charges each carry a maximum penalty of 20 years in prison, a fine of $1,000,000 or both; the bribery and money laundering charges each carry a maximum penalty of 10 years in prison, while the conspiracy charge carries a maximum sentence of five years in prison.

Assistant U.S. Attorneys Anthony M. Bruce and James P. Kennedy, Jr. stated that the indictment charges that the defendant, who was formerly a tribal councilor of the Seneca Nation of Indians (SNI) and who was, in 2006, vice chairman of the board of directors of the Seneca Gaming Corporation (SGC), unlawfully siphoned for himself $338,000 out of the $2.1 million that the SNI and its subsidiaries paid in order to purchase 251 acres of farmland in the Town of Lewiston, New York. That land now serves as the site for the Seneca Hickory Stick Golf Course.

The indictment charges that Mitchell, together with former Lewiston attorney Timothy J. Toohey, developed a scheme under which each would, unbeknownst to the SNI and the SGC, receive a portion of the proceeds of the monies paid by the SNI and its subsidiaries, the SGC and the Seneca Niagara Falls Gaming Corporation (SNFGC), to purchase the land for the golf course. The indictment alleges that Mitchell actively promoted the land acquisition to the SNI prior to the tribal council adopting a resolution authorizing the purchase and that he thereafter played a key role in negotiating the sales contract on behalf of the SNI. The indictment further alleges that Mitchell, despite his role as an agent of the nation and an officer and employee of the SGC, failed to disclose to the SNI governing bodies the fact that he and Toohey had inflated the cost of the land in order to ensure that he and Toohey would each receive a portion of the money paid by the SNI for the land. Toohey, who previously pleaded guilty to unlawfully receiving an additional $202,000 of the proceeds of the land deal, is currently awaiting sentencing before the Honorable Richard J. Arcara, United States District Judge.

"Today's indictment reaffirms the commitment of my office and the Department of Justice to renewing our nation's enduring promise to American Indians to respect their sovereignty and the legitimacy of their tribal governments," said U.S Attorney Hochul. "I would like personally to thank the government of the Seneca Nation of Indians and the Seneca Gaming Corporation for their ongoing assistance in this long-term investigation."

The indictment was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge James H. Robertson. The evidence was presented to the grand jury by Assistant U.S. Attorneys Anthony M. Bruce and James P. Kennedy, Jr. who will handle the trial of the case.

The New York Stated Police, Internal Revenue Service, and Niagara County District Attorney's Office also assisted in the investigation.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.