Stillaguamish Tribe files suit against former leaders and local real estate agent

In a lawsuit filed in U.S. District Court in Seattle, the Stillaguamish Tribe says it was the victim of a conspiracy to funnel millions of dollars away from its members through illegal practices. Former tribal leaders Edward Goodridge and his son, Edward Goodridge Jr., are named among the list of defendants.

Also named are real estate agents David L. Nelson of Stanwood and Nathan W. Chapman of Mill Creek.

The suit claims the Goodridges abused their authority to make business decisions on behalf of the tribe in partnership with Nelson and Chapman, with the aid of several other defendants, to “take advantage of the tribe’s status as a sovereign nation” for personal financial gains between 2001 and 2009.

The allegations include business and real estate transactions violating federal criminal laws.

The Goodridges are currently serving federal prison sentences after pleading guilty to conspiracy charges of trafficking contraband cigarettes through the Blue Stilly Smoke Shop on reservation land.

The suit claims Nelson and Chapman had a hand in funding illegal activity at the smoke shop as well as knowingly and unlawfully conspiring to devise schemes to defraud the tribe of money and property.

Nelson and Chapman were secured as the tribe’s exclusive real estate agents by the Goodridges in 2001.

Starting in 2001, the Goodridges worked to develop a casino on tribal property, what is now Angel of the Winds Casino.

In acquiring land, 28 tribal households were forced to relocate. The claim reports that tribal members were told they had to work with Nelson as their realtor to find replacement housing if they decided against a cash in-hand alternative.

Nelson is accused of failing to obtain proper inspections for the alternative housing properties, purchased by the Tribal Housing Authority.

Since then, the tribe says it has had to pay for numerous repairs on properties Nelson claimed to have had inspected.

Between 2002 and 2008, Nelson and/or Chapman orchestrated property transactions on behalf of the tribe totaling more than 677 acres for a total purchase price of $32.9 million, according to the suit. The estimated market value of the properties was approximately $22 million.

“The inflated prices constitute a loss to the tribe, and unjustly enriched Nelson and/or Chapman in the form of inflated real estate commissions,” cites the claim.

According to the lawsuit, Nelson and/or Chapman had preemptively purchased some of the properties at a fair market value in their own names, or in the name of relatives, acquaintances or business partners in an attempt to resell the properties to the tribe at significantly higher prices.

Nelson and Chapman are further accused of billing the tribe for commissions in excess of the industry standard.

As stated in the suit, it is the tribe’s belief that the Goodridges received payments from the real estate transactions completed by Nelson and Chapman.

On behalf of the tribe, lawyer Alexandra K. Smith of Lane Powell in Olympia issued this statement: “The tribe has suffered significant damage at the hands of persons named as defendants in the lawsuit filed February 25th. The tribe conducted a comprehensive investigation to uncover the facts set forth in the complaint and wants to hold those who harmed the tribe accountable. We believe the details are in the complaint and speak for themselves.”

Staff Reporter Adam Stewart: 629-8066 ext. 115 or astewart@scnews.com.