US opens probe of tribe's finances

Agents of the Federal Bureau of Investigation descended on the Cape Cod offices of the Mashpee Wampanoag Indian tribe yesterday seeking financial records as part of a probe into how the tribal leadership handled the millions of dollars that poured in from investors during its push for a casino.

The Internal Revenue Service sought the records, according to a subpoena requested by the office of US Attorney Michael J. Sullivan, said a person familiar with the investigation. It was unclear if the FBI took documents from the office.

Amy Lambiaso, a spokeswoman for the tribe, said the investigation focuses on Glenn Marshall, the former tribal chairman.

Marshall, 59, resigned last month after acknowledging a 1981 rape conviction and repeatedly lying about his military record. He had led the tribe during the last several years while it pressed for federal recognition and began planning a casino proposed for Middleborough.

"It's our understanding it is an investigation into Glenn Marshall and not any of the other tribe members," she said.

Marshall could not be reached for comment. A cellphone number that he previously used has been disconnected. Officials at tribal headquarters could not provide a phone number for Marshall.

Shawn Hendricks, a Marshall lieutenant in tribal government who replaced Marshall as chairman, issued a statement yesterday saying the tribe would "fully comply with all requests for information."

"It's a question of the financials," said Scott Ferson, another spokesman for the tribe. "There's been a lot of rumors swirling around, and apparently the government thought it was worthy of taking a look." He declined to provide specifics on the rumors.

Typically subpoenas are an investigative tool used by a grand jury. Gail Marcinkiewicz, an FBI spokeswoman, declined to comment. Christina DiIorio Sterling, a spokeswoman for Sullivan, also declined to comment. The request for records was addressed to Hendricks and two council members, Desire Hendricks and Nellie Ramos.

The investigation of tribal finances has emerged at a critical juncture.

Governor Deval Patrick is expected to announce next week whether he supports an expansion of legalized gambling in Massachusetts. Simultaneously, the tribe and its investor partners are petitioning the US Department of the Interior to have about 550 acres of land in Middleborough and 160 acres in Mashpee designated as an Indian reservation, exempt from most local, state, and federal laws.

The tribe and its investors have proposed a casino on the 550 acres in Middleborough that would have 4,000 slot machines, 180 table games, a 10,000-seat auditorium, a golf course, a hotel, and other amenities, according to the tribe's application.

To get to this point, the Mashpee Wampanoags spent decades pushing their case for recognition as a sovereign tribal nation before the federal Bureau of Indian Affairs, a fight they won in February. To finance the lawyers, lobbyists, genealogists, and other consultants they needed, Detroit investor Herb Strather agreed to supply as much as $15 million to the tribe in exchange for a stake in future casino development rights. Last fall, Strather sold a portion of those rights to Sol Kerzner and Len Wolman, developers of the Mohegan Sun casino in Connecticut.

Steven Bingham, a tribe member who for years has sought a financial accounting from the tribe of how the recognition-effort funds were spent, said his reaction to the investigation was, "What took them so long?"

Bingham said he had previously told state and federal authorities they should scrutinize how the money from Strather was spent.

"When we wanted to know what contracts had been made with the investors, where the money was coming from, and where it was going, we were shunned," Bingham said. "Once the investors came with their attorneys, our tribal constitution was changed so that only the leaders and the Tribal Council knew what was happening with the money."

Eileen Frye, 65, a tribal elder who opposed Marshall's leadership, said morale has improved under Hendricks's leadership.

"Everything seems to be working out pretty good," Frye said. "He's sending out letters and speaking up, and everybody seems to have a good feeling about him."

Of Marshall, she said: "I didn't like him from the start. There were a lot of questions about money and spending."