A Northern California Indian tribe on Friday cautioned investors about doing business with bankrupt Las Vegas gaming executive R. Shawn Ellis.
The Elk Valley Rancheria in Crescent City, Calif., issued a press release saying it reviewed a May 26 press release by Ellis "purporting to announce his exploration of a new hotel concept."
The tribe "cautions investors considering a venture with the company," its statement said.
"Multiple entities owned by R. Shawn Ellis have filed for bankruptcy, leaving the Elk Valley Rancheria and other previous investors empty-handed," the tribe’s statement said.
In his press release, Ellis said he was exploring a concept for "an innovative sports and fitness hotel."
"R. Shawn Ellis' intent for the potential hotel is to focus on the needs of traveling athletes and traveling athletic teams; Pro-FIT Sports Hotels will cater to every possible need of the traveling athlete," his release said.
The tribe on Friday commented: "The tribe notes the following in that May 26, 2011 press release: 'As the CEO of Ellis Gaming & Entertainment LLC, R. Shawn Ellis engages in a hands-on approach in creating a business environment that is profitable for all groups, but more importantly, a long term benefit to the health and well-being of all partners involved in each and every venture.'"
"Beware. The Elk Valley Rancheria still waits for the profit, health and well-being from the ventures with Mr. Ellis," the tribe’s statement said.
"We want potential investors to understand the full-scope of the R. Shawn Ellis business," Dale Miller, chairman of the Elk Valley Rancheria, said in the statement.
Ellis couldn’t immediately be reached for comment on the tribe’s press release.
In court papers filed last month, the Elk Valley Rancheria said it was investigating the finances of Ellis and his companies as it tries to recover $1 million in principal, interest and costs from a $480,000 loan to Ellis, whose company formerly managed the tribal casino.
Ellis has argued in court that this money doesn’t need to be paid back since the tribe converted the loan into equity in one of his companies that later filed for Chapter 7 bankruptcy liquidation. The tribe disputes this.
Beginning in November, three Ellis companies and Ellis personally filed for Chapter 7 bankruptcy liquidation in Las Vegas after plans for a casino-resort in Las Vegas fell through.