Wells Fargo sues California tribe in dispute over $250M loan


PHILADELPHIA, PA – NOVEMBER 16: Exterior of the Wells Fargo bank on November 16, 2018 in Philadelphia, Pennsylvania. (Photo by Lisa Lake/Getty Images for Wells Fargo)

FRESNO, Calif. (AP) — Wells Fargo is suing California’s Picayune Rancheria of Chukchansi Indians over a $250 million loan that the bank says the casino-owning tribe is avoiding paying back.

The Fresno Bee reported Saturday that the 2012 loan was issued to refinance debt from the Chuckchansi Gold Casino and Resort. It came with several requirements that the suit filed in New York last week alleges are not being met.

Chukchansi representatives did not immediately return calls from the newspaper seeking comment.

Wells Fargo claims the tribe is violating terms by stockpiling cash meant for loan repayments.

The complaint also accuses the tribe of informing investors that it would stop making payments after Sept. 30, 2019 — which the bank says violates the loan agreement.

The case was first reported by the legal news service Law360.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

COVID-19 Vaccine Tracker

Trending Stories

Latest News

More News