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2007-10-10

Tribe sues former lawyer, advisor

The Rumsey Band of Wintun Indians, the tribe that owns Cache Creek Casino Resort in Brooks, has sued its former legal counsel and a financial advisor, accusing them of unjustly enriching themselves with tribal money.
The suit, filed Tuesday in Yolo County Superior Court, names as defendants Howard Dickstein and his law partner Jane Zerbi, as well as Arlen Opper, a former tribal investment advisor.
The filing alleges the attorneys and advisors took advantage of their trusted positions to enrich themselves.
"This is a press event. There is nothing to do with the truth in this. It is meant to ruin my reputation," Dickstein said late Tuesday. "There is not a shred of truth in the allegations."
He said the suit was a "vendetta" by the new tribal management and their new advisors.
Marshall McKay was elected to tribal chairman early last year. Shortly after taking control of the tribal government, McKay terminated Dickstein's contract with the tribe and hired a much larger legal firm. McKay also hired an forensic accounting company to investigate the tribe's businesses.
That investigation, the tribe's suit states, found that many of the tribe's business dealings "were fraught with self-dealing and conflicts of interest," according to the suit.
The suit seeks compensation and restitution for tribal assets "wrongfully obtained or held."
Dickstein said he is angered by the suit.
"We will be filing counter-suits," Dickstein said. "We will fight it and we will fight it hard. We've been libeled and we are going to do what we can about it."
Dickstein was attorney for the tribe for 20 years, back when the tribe first launched its bingo hall.
"When we started with them, they had assets of $100,000 and tilt-up bingo hall, and over 20 years they have assets well over $1 billion," he said. "We played a crucial role in all of that."
The tribe is just starting the process of expanding its 200-room hotel, spa and casino in Brooks, with a new 467-suite hotel tower, bungalows and pools in what is expected to take several years and cost about $300 million.
Dickstein has long been an attorney specialized in Native American and sovereignty issues. He represents many tribes, including the United Auburn Indian Community, which owns Thunder Valley Casino outside of Roseville, now one of the most profitable casinos in the country.
Credited by: bizjournals.com

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