Investor Suing Eastern Pequots Over Casino Development

July 9, 2003

Associated Press

NEW LONDON, Conn. - An investor who financially backed the Eastern Pequot tribe is suing, claiming the tribe improperly severed its relationship with him after it received federal recognition.

The Superior Court lawsuit by J.D. DeMatteo, chairman of Amalgamated Industries Inc., seeks to continue working with the tribe to receive substantial damages.

DeMatteo financially backed and had a formal partnership with the tribe since 1992 and also brought in developer Donald Trump, according to the lawsuit.

This spring, the Eastern Pequots ended their association with DeMatteo and Trump in favor of Fairfield golf course developer David Rosow, who is backed by Florida multimillionaire William Koch.

Trump signed a development agreement with the Paucatuck Eastern Pequots in 1999 and Rosow signed an agreement with the rival Eastern Pequots in 2000. in June 2002, the federal Bureau of Indian Affairs recognized the two groups as a single tribe, the Eastern Pequots, forcing them to choose one developer as their partner.

“We are taking this action only because we are left with no other recourse to protect our interests,” Thomas Kokoska, Amalgamated’s general counsel said Wednesday. “We consider members of the tribe to be our friends and we regret that it has come to this.”

The lawsuit claims that a few members hijacked the tribe, misled its council and members in order to terminate the deal with DeMatteo and his company.

The tribe is already being sued by Trump, whose lawyers have made similar allegations.

DeMatteo, along with Trump, provided the Paucatuck Eastern faction more than $14 million in support during the long and costly process of federal recognition.