Plain Green settles with BEH over loan lawsuit

Plain Green LLC, the Chippewa Cree Tribe's online lending company has reached a settlement with BEH Ltd., a Florida-based gaming venture in a longstanding lawsuit involving an unpaid loan taken out to expand Northern Winz Casino.

A Dec. 7 order filed with state District Court and signed by Judge Daniel Boucher said that after reviewing the unopposed motion by BEH to vacate judgement and dismiss the case, the judgement has been vacated and the case dismissed with prejudice, meaning it cannot be filed again.

Grace Platon, a spokesperson with the Carbon Agency, a firm that handles public relations for Plain Green, said in a press release Wednesday that the settlement and payment of the debt releases the tribe and Chippewa Cree Development Corp. from all liability in the case.

The settlement amount is under seal by order of the Montana Twelfth District Court in Hill County.

"Our agreement with BEH and repayment of the debt that was owed settles this financial obligation and allows us to look ahead with confidence," Plain Green CEO Jay Abassi said in the release.

"As a wholly owned business of the Chippewa Cree Tribe, Plain Green is proud to provide financial support to our community. We are working with the tribal leaders to continue business development and programs that deliver the greatest economic and social impact on the Chippewa Cree Tribe," he said.

Chippewa Cree Tribal Chairman Harlan Baker said in the release that the tribe is glad to have the lawsuit settled.

"We are pleased to have this matter finally resolved," Baker said in the release. "It has been a dark cloud hanging over our community for some time and this settlement marks the end of a troubling era in our history. There was a very difficult period when we were unable to operate financially because our assets were frozen due to legal maneuvering associated with the lawsuit. The suit was a burden for all in the community who relied on government jobs and services to care for their families.

"The future of the community and our financial stability depends on the creation of new businesses through our economic development arm. Plain Green provides a wonderful example of one of our business units supporting the tribe using their financial strength to help us pay our debt. We're now able to bring closure to the matter and focus on future opportunities for our community," Baker said.

The lawsuit traces back to the construction of Northern Winz, after BankFirst of South Dakota issued a loan to Chippewa Cree Development Corp. in 2006, to which BEH acted as a loan guarantor.

Alan Ginsburg and Joseph Shunock formed Box Elder and Havre Gaming Ltd., or BEH, in about 2005 for the purpose of building a casino at Rocky Boy.

After delays and cost overruns, Northern Winz opened in February 2007 but failed to generate revenue. The development corporation defaulted on the loan.

In 2009 BankFirst was placed into receivership by the Federal Deposit Insurance Corp., which transferred the loan to Outsource Credit Management LLC. Federal District Court entered summary judgement in favor of Outsource Dec. 7, 2010, and BEH agreed to pay the management company $13 million over four years making their final payment May 7, 2013.

In 2011, BEH filed suit in state District Court, which resulted in a settlement agreement in which the tribe, its development corporation and its online lending company, Plain Green, agreed to make payments and agreed to a limited waiver of sovereign immunity and consent to settle suits in state or federal courts.

The development corporation defaulted on its obligations under the settlement agreement in March of 2013. BEH then filed a suit alleging breach of contract based on the Sept. 23, 2014 settlement agreement.

Last February, BEH used a writ of execution to temporarily freeze tribal accounts that included state and federal money, Boucher ruled that BEH had a first priority interest in the more than $25 million it was owed by the tribe.

The freezing of the money temporarily halted some service payments and led the tribe to consider laying off some tribal employees.

Baker and Richard Zacks. an attorney representing the tribe, argued BEH exceeded its authority by freezing assets that were not coming from Plain Green, Northern Winz or the development corporation.

After a March 22 hearing, Boucher ruled the tribe could access certain accounts as long as banks could determine the money being accessed was from federal or state funds.