Stupak Throws Indian Law Monkey Wrench Into Greektown Bankruptcy

Potentially, though perhaps not likely, this is a huge issue. Assuming that the Greektown parcel is owned by the Secretary of Interior on behalf of the Sault Tribe, then an Act of Congress may be required. And if one is not forthcoming, there may be some very interesting litigation involving the interaction of federal bankrupcty laws and maybe the Quiet Title Act. If the land is not in trust, then we may still have a Non-Intercourse Act problem, but likely not. Apparently, according to the letter, the land is in trust.

Update: Via Indianz, here is Stupak’s letter.

From the Freep, via Pechanga:

WASHINGTON — U.S. Rep Bart Stupak wants to halt the bankruptcy reorganization of Greektown Casino at least until the federal government determines whether an act of Congress is needed to transfer the land the Detroit gaming hall sits on.

Earlier this year, a federal bankruptcy judge approved a reorganization plan allowing Greektown Casino’s bondholders — including several private equity and hedge funds — to take ownership. The Sault Ste. Marie Tribe of Chippewa Indians, based on Michigan’s Upper Peninsula, has a majority ownership stake in the casino.

The process needs the approval of the Michigan Gaming Control Board, with a court deadline of June 30 approaching.

But Stupak, D-Menominee, has asked U.S. Attorney General Eric Holder and Interior Secretary Ken Salazar to delay any change in ownership while they investigate whether land held by the federal government on behalf of the tribe — about three-fourths of an acre on Beaubien Street in Detroit — can be transferred without an act of Congress.

“The tribe stands to lose its entire investment in the business, including a portion of the real property underlying the casino,” Stupak said in the letter written Wednesday.

According to Stupak, 400 Monroe Associates — controlled by Greektown businessman Ted Gatzaros — deeded the land to the U.S. Department of Interior on behalf of the tribe in 1992.

Tribally owned lands cannot be sold without the consent of the federal government, and the Interior Department is not allowed to approve the sale of such land without direct congressional authorization, Stupak said.

“I seriously question the propriety and legality of a process in which the property conveyed to the United States in trust on behalf of the tribe can now be conveyed to another party without congressional authorization,” wrote Stupak, who spoke to members of the tribe during last week’s Mackinac Policy Conference on Mackinac Island.

Greektown Casino lawyer Dan Weiner of Schafer & Weiner in Bloomfield Hills did not immediately return a call for comment Thursday.

Meanwhile, the Michigan Gaming Control Board has scheduled a June 28 meeting in Detroit to discuss the casino’s reorganization.

One thought on “Stupak Throws Indian Law Monkey Wrench Into Greektown Bankruptcy

  1. diana knowles June 30, 2010 / 7:09 am

    Hello,
    In response to IF the land in Detroit under Greektown Casino has been put into???? NO!!! It had not been aside from State level! Bernard Bouchor & Ted Gatzaros deeded this property in their own names and not for the Sault Tribe. This long plan had started back in the early 1990’s. Both men set out to use the money from the Sault tribe to purchase the lands in detroit all around the casino from a 5 mile radius every direction butting up into Beaubien Street. All deeds, quick claim deeds are not in the name of the Sault tribe, they are all in the personal name of Bernard Bouchor, Ted Gatzaros.
    They intended to have the Sault Tribe loose the casino and made sure the past couple years that no attempts were being made on behalf of the Sault Tribe to locate investors other than Ted Gatzaros. The directors of the Sault tribe were threatened by the attorneys should they try to seek investors to help them out of the bankruptcy issues.
    All documentation can be verified to the above comments. Everything can be located in the city of Detroit’s offices, public information.
    The land in question can be traced back to the treaties of Detroit, Paris, etc. The land had been ceded by the US Gov for the Mackinac Tribe (Bands) back in 1855. The Chief of the Mackinac Indians in fact did sign the treaties above in their own name relative to the lands in question. YES THERE STILL IS A LANDS CLAIM ISSUE THAT MUST BE EXPOSED!!
    Thank you
    Diana Knowles

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