By Shawn Hogendorf, Correspondent 

A federal jury in St. Paul acquitted a 36-year-old Prior Lake businessman on 26 charges of bribery, wire fraud and conspiracy on June 4. The charges resulted from possible corruption of casino development and contracting practices alleged to have occurred in 2003 in connection with former officials of the Leech Lake Band of Ojibwe.

Craig Potts, former CEO of Cash Systems Inc., a company which provided check cashing services for the Leech Lake Band of Ojibwe at the time the charges in 2003, pleaded not guilty to all charges filed against him on March 22, 2007.

Potts’ attorney Roger Magnuson said four other counts Potts faced of giving false statements and obstructing justice were dismissed by U.S. Federal Court Judge Paul Magnuson.

The Magnusons are not related.

Throughout the FBI interview process, Potts claimed that the payments to the tribe’s gaming director were a loan from his father, not bribes, according to the federal indictment.

“While we’re elated with the result; this is a case that should never have been brought,” Roger Magnuson said. “Craig Potts was totally innocent of these charges. This is a complete vindication for Craig [Potts].”

The federal indictment alleged that Potts paid $35,000 in bribes to the former chairman and gaming director for the Leech Lake Band of Ojibwe and conspired to influence the tribal government officials to be rewarded with business contracts for his business, Cash Systems Inc.

Peter D. White, the tribal chairman of the Leech Lake Band of Ojibwe between February 2003 and June 2004, pleaded guilty to accepting $1,500 cash payment on Aug. 1, 2003 and also to accepting another $1,500 cash payment on Nov. 11, 2003. The former gaming director, Michael Johnson, pleaded guilty to wire fraud.

“It’s been a terrible ordeal for me and my family, but a tremendous relief to be found innocent of all charges by a unanimous jury,” Potts wrote in a statement.

The jury acquitted Potts on the charges after a half day of deliberations.

 Shawn Hogendorf can be reached at (952) 345-6374 or shogendorf@swpub.com.