Balance of Debt Payment Made for Chukchansi Tribe Following Approval by Reggie Lewis, Chairman of Picayune Rancheria of the Chukchansi Indians

FRESNO, Calif., July 25, 2013 /PRNewswire/ -- Acting with the approval of Chairman Reggie Lewis, officials at the Chukchansi Gold Resort and Casino issued a wire transfer for the final $2.6 million payment on the Chukchansi Tribe's debt obligation that was due in March. Following pressure by the Lewis Council and an overwhelming majority of Chukchansi Tribal members, the trustee for the Tribe filed a lawsuit in New York compelling Nancy Ayala and her Faction to deposit the money necessary for the payment to be made in compliance with the court order and the Tribe's indenture obligations.

The New York court order issued earlier this month stated that only management officials from the Chukchansi Gold Resort and Casino would have access to the Tribe's Rabobank account from which the payment was made but only after the approval from Chairman Lewis. Rabobank previously recognized the Reggie Lewis and members of the Tribal Council that he leads as the authorized signers. The New York Supreme Court order was necessary after Ayala, in breach of the Indenture and Deposit Account Control Agreement, refused to deposit money into the Tribe's Rabobank account, risking the Tribe's reputation and financial well-being by hoarding casino revenue in the casino cage and dispensing it to her supporters in violation of Tribal, state and federal law.

"We are glad that this payment was able to be made to satisfy the Tribe's debt obligation," said Chairman Lewis. "We continue to follow the legal process and abide by the court order to protect the best interests of the Tribe. Thanks to the court order, we can ensure that Nancy Ayala is no longer able to unlawfully take money from the Tribal Government without paying our debts. Now that the Tribe's debt obligation is satisfied, we can continue our work to restore order to the Tribal government."

Attorneys for the Lewis Council also filed actions in the New York Supreme Court against Nancy Ayala, Tracey Brechbuehl, Karen Wynn, and Charles Sargosa for conduct in violation of the Federal Racketeer Influenced and Corrupt Organizations Act ("RICO") and the Tribe's indenture agreement.  The cross-claims allege that Ayala led a racketeering scheme that seized profits from the Chukchansi Casino and fraudulently distributed money to members of the Ramirez and Wyatt families, which she claims are the only legitimate members of the Tribe. According to the court filing, Ayala installed a security force consisting of gang members and convicted felons that intimidated anyone who questioned her actions.

The cross-claims allege how Ayala illegally attempted to remove all members of the Tribal Council except herself using a petition signed by just 17 individuals. With a valid petition requiring signatures from 30 percent of the tribal membership, Ayala effectively attempted to disenroll hundreds of Tribal members to ensure that only her and her family members would benefit from the Tribe's revenue.

"We will do everything necessary to ensure that justice is served," stated Chairman Lewis. "This story gets worse and worse as we learn more about what Ayala and her small group of supporters has been doing for the past few months."

Ayala, Brechbuehl, Wynn and Sargosa are all required to appear in New York in August and September to answer questions, under the penalty of perjury, regarding the allegations

SOURCE Picayune Rancheria of the Chukchansi Indians