EXCLUSIVE: New arrest, accusations in Chukchansi takeover attempt

FRESNO, Calif. (KFSN) -- Chukchansi's power struggle could put an end to the tribe's casino and not just temporarily because of a Wall Street effect.

"They're going to come in and foreclose on the loan, take over the casino and sell it off to get their money back," said ABC30 legal analyst Tony Capozzi of the casino's investors.

The criminal case moved forward Friday, but there's a big roadblock before it goes much farther.

The Chukchansi casino floors have emptied since the October takeover attempt by Tex McDonald and the police force he assembled. Surveillance cameras caught some violence as the operation hit casino offices, and the video led to criminal charges against McDonald and 14 others.

The five men who turned themselves in say everything they did was legal. They believe McDonald was the tribe's rightful leader, they were the rightful police force, and they did it all with their attorney right there with them.

"You have to show specific intent, that they intending to harm someone," said Capozzi. "Well, if they go in on the advice of counsel, and believe they weren't doing something wrong, didn't think they were violating the law, there may not be a crime here."

Jimmy Glasscock is the sixth man in custody -- arrested Thursday in Texas and awaiting extradition.

John Oliveira is the first suspect to bail out of jail. The erstwhile tribal police chief tells Action News he's still filling his force, but we found possible problems in his past police work.

Court documents discuss internal affairs investigations which found Oliveira made false statements and falsified documents while working for the Bureau of Indian Affairs. Oliveira tells me he was never given a chance to defend himself against the allegations and didn't even know they existed until they showed up in court records.

The current charges against him could easily go away if it's shown his work for Chukchansi was legitimate. Capozzi says you may have to follow the money to find out.

"Wall Street has about a $350 million loan on that casino and someone has to be responsible for that," he said. "Who is Wall Street looking at to pay that back?"

And with the casino now closed for more than a month, angry investors may be the only people able to speed up a resolution.

"Unless something's done quickly, they're losing money and they're going to want to recover the money," Capozzi said. "They're going to come in and foreclose on the loan, take over the casino and sell it off to get their money back."

Prosecutors are now scheduled to present the first evidence in the case a month from now.