BISMARCK, N.D. (Valley News Live) – The North Dakota Attorney General’s Office has revoked the gaming license of the Beulah Convention and Visitors Bureau and ordered it to repay nearly $400,000 in improperly spent funds following an investigation into multiple violations of state gaming laws.
Attorney General Drew Wrigley announced the enforcement actions after the Gaming Division found the Beulah CVB misrepresented financial distributions, made improper transfers of net proceeds, and filed inaccurate reports on official documents.
“Gaming organizations in North Dakota must follow strict rules, and it’s our responsibility to enforce them fairly,” Wrigley said. “Unfortunately, some organizations and individuals do not take these obligations seriously, as we saw with BCVB.”
Investigators found the CVB falsely reported disbursing $277,747 in net proceeds to a business when it actually distributed the funds to itself. The CVB also falsely reported sending $20,500 to a golf course when the money went directly to an individual.
Investigators also found the CVB reported “donations” to entities, including the Pfennig Museum, that were never made and submitted misleading applications for gaming funds.
A CVB board member who leases a site to the organization improperly participated in and influenced the board’s decision to distribute gaming net proceeds, according to investigators. More than $100,000 in net proceeds were also used for ineligible purposes, including debt acquisition and direct disbursements to individuals.
In addition to the license revocation, the CVB must return $398,287 to its trust account and pay a $50,000 penalty to the state.
Several individuals have been prohibited from participating in gaming activities. Number Works LLC, a consulting business connected to the violations, was fined $2,500. Lawson Leonard was also fined $2,500. Uncle Maddio’s Pizza received a 90-day suspension of its gaming site authorization.
Wrigley said the CVB and individuals involved will have the opportunity to respond and request a hearing.
The attorney general said the actions are intended to uphold the integrity of charitable gaming and ensure compliance statewide.
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