State officials have leveled a series of heavy sanctions against the Beulah Convention and Visitors Bureau (CVB) following a deep-dive investigation into what the Attorney General’s office calls “grave” violations of North Dakota’s charitable gaming laws.
The enforcement action includes the immediate revocation of the CVB’s gaming license, a $50,000 state penalty, and an order to repay nearly $400,000 in misdirected funds.
A.G. Wrigley’s press release detailed four key findings: the CVB falsely reported where money was being used, meaning they reported paying $277,000 to a business, but kept the funds; reported $20,500 to a golf course that actually went to an individual. They also are said to have claimed “donations” to the Pfennig Museum that were never actually made. There was a conflict of interest, in that a board member improperly influenced the distribution of gaming proceeds while leasing a site to the CVB. Over $100,000 in net proceeds was found to have been used for ineligible debt payments and disbursements to individuals.
“Gaming organizations in North Dakota must follow strict rules… it’s our responsibility to enforce them fairly,” Wrigley said.
The BCVB and the individuals named in the report have the right to request a formal hearing to respond to these charges.
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