Ousted Bingo Firm Counter-Sues Barona Indians Over Contract

American Management and Amusement Inc., which was sued last month by the Barona Indians for allegedly failing to properly manage high-stakes bingo games, has counter-sued the Barona Indians, claiming they had no right to terminate the management contract.

The lawsuit, filed last week in U.S. District Court in San Diego, seeks more than $70 million in damages and claims that the Indians were negligent in the hiring of general manager Stewart Siegel, who later admitted stealing $96,000 by rigging bingo games.

The Barona tribal council voted in May to terminate its contract with American Management and filed its lawsuit against the company two weeks later, alleging that the management firm kept a double set of financial books, failed to prepare monthly operating statements, undercapitalized bingo games and failed to pay its fair share of operating expenses.

American Management’s counter suit accuses the Indians of illegally declaring the management contract null and void and charges that the Indians owe the company $3.6 million in “work, labor, material and services.”

The company accused the Indians of failing to act in “good faith and fair dealing,” and of duping the company into building a $3-million bingo hall.

The suit maintains that the Indians failed to conduct a proper background credibility and criminal records check on Siegel, who admitted in San Diego Superior Court on April 2 that he stole $96,000 in prize money by rigging several high-stakes games.

American Management asked for $60 million in punitive damages.

Art Bunce, the Indians’ attorney, said he will not comment on the suit until after he first meets with the tribal council tonight.