Fired executive sues River Rock

As River Rock Casino prepares to embark on a major expansion, its former chief operations officer is pressing a lawsuit claiming he was forced out after questioning millions of dollars in unauthorized expenditures.

Former casino executive Norman Runyan filed a lawsuit last week in Sonoma County Superior Court alleging he was fired unjustly from his $300,000 job.

He said the firing came after he insisted on an independent audit to clear up as much as $15 million in accounting discrepancies on the books.

Runyan, who also served since 2002 as general manager and chief executive officer until his dismissal in November, named as defendants River Rock Casino and River Rock Entertainment Authority, the tribal agency that owns and runs the casino.

He also named Dry Creek Rancheria Tribal Chairman Harvey Hopkins. The lawsuit alleges Hopkins, who is a licensed excavating contractor, steered business to his company at a higher cost and with bad results for the casino operation.

Hopkins declined comment Thursday, saying he had not seen the lawsuit. He referred questions to the tribal attorney, who did not return a call.

But a spokesman for the Dry Creek Rancheria Band of Pomo denied Runyan's charges.

"Based on our understanding of the allegations, it appears they are entirely false," said spokesman Dave Hyams.

The tribe is continuing with plans to borrow more than $300 million from institutional investors to finance its high-end destination resort hotel and permanent casino complex, he said. Ground on the expansion project could be broken in late spring, Hyams said.

Runyan, who lives in Cloverdale, did not return a call Thursday. In his lawsuit, he alleged that Hopkins interfered with the business operations, resulting in the loss of "tens of millions of dollars in revenue to the tribe."

He said Hopkins forced the casino to use the services of a company he owned and operated for road patching, landscaping and repairing leaks on the parking garage. The suit also alleges Hopkins forced River Rock Entertainment Authority to pay the tribe $20,000 a month for a campground and RV center the tribe acquired in Alexander Valley.

Transactions with tribal affiliates are supposed to be better regulated, under terms of $200 million in notes the Russian River Entertainment Authority sold in 2003, Runyan's lawyer said.

"The Securities and Exchange Commission requires certain accounting procedures to be followed, and they weren't being followed," said Runyan's attorney, David Secrest. "He pointed this out to the board and Hopkins, and he was disregarded."

Runyan said he tried to reconcile differing financial statements that showed the tribe had either zero on its balance sheets, or as much as $14.8 million.

Not only was his call for an audit of the books ignored, Runyan said, he was wrongfully terminated and suffered emotional distress.

Hyams questioned the allegations. "The things he's talking about don't seem to jibe at all. There's not that much money being spent," he said.

Runyan's lawsuit notes that the tribe's gaming compact with the state requires it to waive some of its sovereign immunity for personal injury and damage claims and carry public liability insurance of at least $5 million.

You can reach Staff Writer Clark Mason at 521-5214 or clark.mason@pressdemocrat.com.