According to the state Commerce Department accuses National Capital I of committing fraud with investors. This company works on behalf of the Eastern Shawnee tribe of Oklahoma in order to bring Indian casinos to Ohio. It seems the company sold around 1.5 million dollars in promissory notes to investors. The president of National Capital has been accused of selling securities and lying to investors with false representations between 2002 and 2005. Investors now want their money back.
An order has been issued compelling NCI to cease such practices, obliges the company to return a 10 percent of the promissory notes sold to 48 investors, as well as a 1/16 of a 1 percent interest of NCIs gaming revenues. Among the investors, there is T and S Schnippel, which is run by Tom Schnippel and his wife. T and S Schnippel invested 50.000 dollars in NCI. Other Ohio investors contributed up to 50,000 dollars.
This incident is going to be a definite obstacle to Eastern Shawnee tribe for requesting a license to build a casino in Ohio. Either they prove they have ancestral rights on the land through the federal court system, or they have it reserved in a federal trust and are able to agree with Ohio officials. Charles Hertlein, attorney that represents NCI, said that his clients will attend an adjudicatory hearing if nothing else works with state securities officials.
