The Oklahoman

Tribes sue over failed poker website venture

- BY BRIANNA BAILEY Staff Writer bbailey@oklahoman.com

CONCHO — The Cheyenne and Arapaho Tribes claim in a lawsuit that fraudulent gaming deals, including a failed internet poker venture, cheated their people out of $13 million.

“The transactio­ns were marked by deceit, greed and utter disregard for the laws and economic wellbeing of the tribes,” the lawsuit claims.

Gov. Eddie Hamilton filed the lawsuit Thursday on behalf of the tribes in Cheyenne and Arapaho tribal court in Concho. The list of defendants included Florida businessma­n Fred “Prince Fred” Khalilian, who helped sell a never-realized gaming venture to the tribes called Pokertribe­s.com.

The Cheyenne and Arapaho claim that Khalilian and his business partners from the Florida company Universal Entertainm­ent Group cheated the tribes out of $9.45 million for the gaming website, which was never fully functional.

The lawsuit claims Khalilian and Universal Entertainm­ent Group actually had no legal right to sell the Pokertribe­s. com software to the tribes.

The gaming software was allegedly owned by one of Khalilian’s former business partners, who later successful­ly sued him in state court in Georgia over the rights to the product, according to the lawsuit.

Multiple people named as defendants, including Khalilian, told The Oklahoman they believe the legal action is politicall­y motivated. Hamilton is up for reelection this year and faces several challenger­s.

The Cheyenne and Arapaho folded plans for Pokertribe­s.com in 2014.

Universal Entertainm­ent Group has since partnered with the Perkins-based Iowa Tribe to launch a new poker website. The Iowa Tribe’s Pokertribe.com domain is only one letter off from the Cheyenne and Arapaho’s failed Pokertribe­s. com.

The Iowa Tribe announced in September that it had obtained a license from the Isle of Man in the British Isles to launch Pokertribe.com as an internatio­nal gaming venture this fall.

‘A sore loser’

“Eddie Hamilton is a sore loser — that’s what he is,” Khalilian said. “The Iowa Tribe has gone further than the Cheyenne and Arapaho ever did and Hamilton has egg on his face now.”

Brian Foster, former head of gaming operations for the Cheyenne and Arapaho, is also named as a defendant in the lawsuit.

“I believe it’s definitely politicall­y motivated,” Foster said.

Foster said he believes Pokertribe­s.com was a viable website and a good opportunit­y for the Cheyenne and Arapaho to dramatical­ly increase its gaming revenues.

“It’s unfortunat­e they didn’t stick with it. They would have done very well,” Foster said. “My position was to create business for the tribes and this was obviously a technologi­cal advancemen­t.”

In a statement, Hamilton said the lawsuit was the culminatio­n of a lengthy investigat­ion into the tribes’ past business dealings.

The tribes continue to work with law enforcemen­t to seek criminal prosecutio­n of several individual­s named in the lawsuit, Hamilton said.

“We continue to aggressive­ly work with federal regulators and law enforcemen­t authoritie­s to bring about the indictment of those who have taken advantage of our tribes and misused our tribes’ gaming revenues,” Hamilton said. “We are appreciati­ve of the cooperatio­n and interest shared by those federal authoritie­s and are proud of the strong partnershi­p we have developed — particular­ly with our federal regulatory partners.”

Also named as defendants in the lawsuit are Universal Entertainm­ent Group partners Isaias Almiras and Tatiana Vlasenko; Thomas Fox and Barbara Paukei, who previously managed the Cheyenne and Arapaho’s casinos in various capacities; attorney Richard Grellner, who helped negotiate the Pokertribe­s.com deal, and former Cheyenne and Arapaho Gov. Janice Prairie Chief-Boswell.

In an email, Grellner called the lawsuit “merely a publicity stunt.”

 ?? [PHOTO PROVIDED] ?? The Perkins-based Iowa Tribe says Pokertribe.com is expected to launch in fall 2017 as an internatio­nal gaming website.
[PHOTO PROVIDED] The Perkins-based Iowa Tribe says Pokertribe.com is expected to launch in fall 2017 as an internatio­nal gaming website.

Newspapers in English

Newspapers from United States