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Miccosukee Tribe

Tribal chairman’s binge spending led to bad blood

 

Former Miccosukee chairman Billy Cypress saw gambling as the tribe’s savior, but the windfall has led to infighting and lawsuits.

Cypress’ spending

Cars

2010 Mercedes Benz S-Class S65 AMG

2009 BMW X5

2009 Ford Mustang Shelby GT 500

2009 Chevy Corvette

2009 Ford Mustang GT

2008 Fort Expedition

2007 Ford F-150 King Ranch

2006 Mercedes Benz S-Class S65

Real estate

$399,000, Unit 303, Marina Landing, Panama City Beach

$499,000, Unit 301 Marina Landing, Panama City Beach

$250,000, L29 Reserve on the Bay Phase 1, Panama City Beach

$279,000, 2136 SW 156th St., Miami

$305,000, 15440 SW 10th St., Miami

$407,390, 11352 SW 243rd Ter., Miami

$429,315, 15207 SW 14th St., Miami

$363,190, 15220 SW 10th St., Miami

$435,112, 15211 SW 15th Way, Miami

$297,300, 1662 SW 154th Ave., Miami

$249,990, 15475 SW 16th Lane, Miami

Credit card spending

• Food, beverages, jewelry and personal expenses: $234,329.40 (July 2004-Nov. 2007)

• Food and beverages: $308,768.80 (July 2008-July 2009)

• Art: $40,000 (July 2008-July 2009)

• Jewelry: $1,285,286.42 (July 2008-July 2009)

• Clothing: $308,122.43 (July 2008-July 2009)

• Women’s clothing: $19,464.26 (July 2008-July 2009)

• Other personal expenses: $177,693.86 (July 2008-July 2009)

• Food and beverages: $34,092.30 (Sept. 2009-Dec. 2009)

• Jewelry: $293,397.88 (Sept. 2009-Dec. 2009)

One year’s credit card withdrawals at casinos

Jan. 2009: $298,660.99

Feb.: $591,550

March: $1,434,400.50

April: $52,660.99

May: $615,511.88

June: $504,610.99

July: $120,232.97

Aug.: $266,415.94

Sept.: $208,282.97

Oct.: $767,004.95

Nov.: $74,985.99

Dec.: $128,250

Source: Miccosukee Tribe vs. Billy Cypress et al


jweaver@MiamiHerald.com

Back in 1992, Billy Cypress traveled from Miami to Washington, D.C., to testify about the Miccosukee Tribe’s savior.

“Gambling puts our people back to work,” Cypress, the 600-member tribe’s chairman, told a panel of U.S. senators. “It has replaced federal funding and unemployment benefits as the solution to our economic problems.”

Over the next couple of decades, the tribe’s ever-expanding gaming enterprise on the edge of the Everglades would, indeed, generate millions for each and every Miccosukee. But the financial windfall would also boomerang on Cypress, a dynamic leader who had brought the defiant West Miami-Dade tribe and himself into the modern world.

Last week, his own people turned against him in a once-unimaginable lawsuit: Cypress is accused of stealing $26 million from the Miccosukee Tribe of Indians and spending the money like an addict on gambling, travel, shopping, jewelry, real estate and luxury cars.

Among the eye-openers cited in the suit: Cypress made a total of $11.5 million in ATM withdrawals at casinos around the country between 2006 and 2009, drawing the money on the tribe’s investment account with Morgan Stanley Smith Barney. In March 2009, at the height of the nation’s recession, Cypress withdrew a total of $1.43 million from the account — mostly in transactions of $10,300 each — at the MGM Grand in Las Vegas, according to the suit. He also made similar ATM withdrawals at The Mirage in Vegas, the Beau Rivage in Biloxi, and the Seminole Hard Rock Hotel & Casino near Hollywood, a direct competitor to the Miccosukees.

The racketeering suit, filed in Miami federal court last week, depicts Cypress as a serial “thief” provided “protection” by a coterie of excessively paid professionals, including two former U.S. attorneys, two ex-Miccosukee financial officers and the Miami office of the brokerage firm Morgan Stanley. Loyal to Cypress, they never alerted other tribal members about his “enormous fraud and theft scheme,” the suit says.

“These defendants associated with each other for the common purpose of defrauding the Miccosukee Tribe and the Miccosukee people through … secretly protecting the illegal conversion and misappropriation by Cypress and others of tribal funds,” says the 78-page suit, which called the alleged conspiracy a “criminal enterprise.”

Cypress, 61, could not be reached for comment.

His personal lawyers, Guy Lewis, a former U.S. attorney in Miami, and partner Michael Tein, also a former federal prosecutor — both named as defendants in the tribe’s suit — did not return calls or emails for comment about their client.

According to the suit, their law firm was paid more than $10 million for unsubstantiated “legal work” representing the tribe itself on tax matters stemming from the unreported distribution of gambling profits to members, as well as individual members such as Cypress for their personal income tax and DUI problems. Lewis and Tein, who also are facing the fallout of a $3.2 million judgment against two other tribal clients found liable in a fatal-car crash case, have been separately sued by the Miccosukees for legal malpractice.

What sets the Cypress suit apart from all other Miccosukee litigation is the simple fact that he’s family. For decades, the Miccosukees have kept their own business on the reservation, asserting their sovereign status in countless civil and criminal legal cases with outsiders.

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