Wells Fargo Demands that Chukchansi Tribe Repays $250M Loan
The Picayune Rancheria of Chukchansi, a tribal operator, faces a lawsuit for allegedly not repaying a bank loan, reports California news outlet The Fresno Bee.
In 2012, the federally recognized tribe took a $250 million loan from Wells Fargo Bank to refinance debt it incurred for the Coarsegold-based Chukchansi Gold Casino.
This week, the bank sued the tribe before the New York State Supreme Court, claiming that the Chukchansi were to credit gambling revenue to a deposit account which they would then use to finance the operations. Wells Fargo was set to receive the remaining sum twice a year.
However, the bank now maintains that the Chukchansi Economic Development Association (CEDA) didn’t repay the loan, instead it started to stockpile money.
Wells Fargo wants assistance to avoid any “irreparable harm” loan violations could bring.
In 2014, the government closed the casino for over a year following an armed takeover attempt by a rival fraction. The bank claimed that the tribe reopened the casino using the funds from the loan.