More accusations fly within the Puyallup Tribe

TACOMA -- Puyallup Indian leaders, already under fire for a controversial real estate deal, face new allegations that they commonly dip into tribal resources for personal benefit while other members of the tribe are left to struggle with poverty and substance abuse.

According to interviews with members of the tribe and documents obtained by the Post-Intelligencer, Puyallup Tribal Council members enjoy a wide range of special perks not commonly afforded other members of the tribe, which owns one of the state's most successful Indian casinos.Those benefits, described in council memos and meeting minutes, include:

Dozens of interest-free loans and advances on their $68,000 annual salaries.
A rent-free home for Tribal Chairman Herman Dillon Sr., a perk he has enjoyed even when not serving as chairman of the 2,600-member tribe.
A great view of Seattle Mariners games from a Safeco Field luxury sky box leased in February. The box, which has to date cost the tribe's Emerald Queen Casino more than $100,000, is not commonly open to other Puyallups.
At least one instance where the tribe paid back-taxes for a council member. Sylvia Miller lobbied for more than two years to get the council to pay her $19,000 federal income tax bill, blaming an error by the tribe for the debt. That approval came in July 2000, just one month after she was elected to the council.

Last week, the Seattle Post-Intelligencer reported that the council had voted to pay $4 million for former Tribal Chairwoman Roleen Hargrove's failed bingo hall, which was appraised at $1.27 million. The action was later put on hold after some tribal members expressed outrage.

Dillon, the tribal chairman, refused to comment for this story, as did Councilwoman Miller.

Some Puyallup members have filed lawsuits in the tribal court seeking to reverse council financial decisions, and have formed an opposition group called Members for Equal Opportunity and Responsible Government. Robert Miles, a leader in that group, said the battle is for the future of the tribe and the soul of an ancient people.


	The Emerald Queen Casino may make more than $30 million profit this year for the Puyallup Indians. High rollers can watch Mariners games in a luxury sky box. / Seattle Post-Intelligencer Click for larger photo

"Money is blinding us, replacing our culture and traditional values," said Miles, who with his brother, James, helped organize the opposition group.

"We need to do something for our youth -- our kids are overdosing, they're committing suicide," said Miles, who is a tribal probation officer. More than 10 young Puyallups have died in the last year, he said.

"There's no youth center; no activities for kids," Miles said, adding that the tribe, whose culture is supposed to revere old people, has not built a center dedicated for use by its elders even though it is flush with gaming revenue.

James Miles and two other opposition group members are unsuccessful candidates for Tribal Council positions in past elections.

Leaders of the tribe characterize opposition group members as disgruntled former employees terminated from positions with the tribal gaming commission and economic development arm. The dispute over use of tribal resources is long-standing.

In July 2000, when James Miles was deputy executive officer of the tribe, he questioned whether it was appropriate to pay Sylvia Miller's taxes. He said Miller threatened to charge him with insubordination unless he signed off on the payment.

According to a July 25, 2000, internal memorandum obtained by the Post-Intelligencer, Miles warned the council about the threat and said: "I do not believe that the protection of tribal assets when it comes to the exposure of liability and the danger of setting a precedent that would pay similar claims should be construed as insubordination but merely a request for clarification and direction. I did not mean any disrespect nor disregard for council's authority, but in my official capacity I have, as we all do, responsibility to the membership."

Miles later became vice president of Puyallup International Inc., the tribe's economic development arm. He and other employees of the agency were fired last month, just four months after he and his brother joined Butch Dillon -- a nephew of the tribe's chairman -- to form the opposition group and filed suit in tribal court over payment of Miller's taxes.

In the March 2 lawsuit naming Miller and the council, the opposition group asked the court to throw Miller off the council for violation of the tribal ethics code and to force repayment of the $19,000.

They also asked the judge to declare invalid a practice called a "walk-around," which is typically used to get council approval for expenditures without benefit of open debate in council chambers, where meeting minutes are recorded. A walk-around was used for Miller's tax bill.In a "walk-around," a secretary visits or calls some of the seven council members and gets them to sign off on an action. If three council members sign off, the action is official.

A tribal court judge, who serves at the pleasure of the council, dismissed the lawsuit, saying the opposition group had failed to exhaust its administrative remedies before going to court, said Charles Hostnik, the group's attorney.

The tribal code of conduct says that a person who knows of a violation of the code of conduct "may file a written statement with the tribal council," according to Hostnik. But the judge, who could not be reached for comment for this article, ruled that the opposition group must first file a statement with the council and get a response before the court has authority to rule.

On Aug. 2, the group filed a written statement with the council, Hostnik said. Tribal code allows the council one week to respond, but the opposition group has not yet received a reply, he said yesterday.

According to Tribal Council records obtained by the Post-Intelligencer, Miller has received at least 15 loans or payroll advances, but she is far from alone.

Chairman Dillon and council members Bill Sterud, Marguerite Edwards, Lawrence LaPointe and Kathryn Lopez also received loans or advances, according to tribal records. Many of the loans were approved through a "walk-around," in some instances with only two council members voting.

Alison Gottfriedson, whose three-year council term expired in June, said she took no loans or advances.

"I don't think it's right," she told the Post-Intelligencer. "There was no provision in our policy to allow it across the board (for all the members of the tribe.) If it can't be available to everybody, why should I do it?"

Only one council member, Sterud, would comment on the practice.

"We've been giving payroll advances for people who need help for the 16 years I've been on council," he said. "It's not just for the tribal council, it's for all staff."

Tribal Council minutes and resolutions obtained by the Post-Intelligencer do show that other employees of the tribe have received advances, but far more have gone to the council itself than to staff members.

For example, on Dec. 19, 2000, a tribal employee received approval for a $300 payroll advance. That same day, a $1,282 advance was approved for Miller.

Frank Wright, general manager of the Emerald Queen Casino, is one of the few tribal employees to get a large payroll advance. Wright, who says he is paid about $180,000 a year, got an advance of $2,500 last spring.

Under Wright's leadership, the casino has become a dominant player in Washington Indian gaming, and is expected to clear more than $30 million in profit this year. As part of that lucrative business enterprise, Wright arranged the lease of the Safeco Field sky box. He told the Post-Intelligencer that the box is used to entertain the casino's high rollers.

"Each game there are high rollers there," said Wright, adding that the tribe sometimes entertains politicians and other leaders as well. "We use it for the same reasons all the big corporations in the state do."

Sterud said he has attended three games in the box, which he called an appropriate use of casino funds -- "a fantastic marketing tool."

But Robert Miles said he is offended by such a large expenditure of tribal funds when many other social needs go unmet. Not long after the tribe purchased the skybox, he decided to register his outrage by sending to the council members in the box a bottle of champagne to let them know he objects to such conspicuous consumption.

P-I reporter Paul Shukovsky can be reached at 206-448-8072 or paulshukovsky@seattlepi.com

Add P-I Local headlines to