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    Friday, April 26, 2024

    Mohegan Tribe refuses to elaborate on reasons for Brown's departure

    FILE - Mohegan Tribal Chairman Kevin Brown, left, avoids specifics as he answers questions from media gathered May 16, 2016, at the Holiday Inn in Norwich. Brown stepped down as chairman in February 2019 and is resigning from the council. (Sean D. Elliot/The Day)
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    Mohegan — Mohegan tribal officials refused to elaborate Tuesday on the circumstances of former Mohegan Chairman Kevin Brown’s impending resignation from the Mohegan Gaming & Entertainment Management Board, an event the tribe publicly announced in a filing with the U.S. Securities and Exchange Commission.

    Posted on the SEC’s website, the filing, known as an 8-K, says, “Mr. Brown’s decision to resign did not involve any disagreement with MGE on any matter relating to MGE’s operations, policies or practices.”

    Brown’s resignation is effective this coming Sunday, the filing says.

    In an email response to a series of questions posed by The Day, the tribe’s chief of staff, Chuck Bunnell, wrote: “The 8-K publicly disclosed the material information relative to Kevin’s decision to resign from the Mohegan Tribal Council and MGE Management Board. Consistent with past practices, the Tribe will not comment further on internal Mohegan governmental matters outside of its citizenship.”

    On Friday, The Day, citing multiple sources who spoke on condition of anonymity, reported that the change in Brown’s status — he stepped down as chairman of the Tribal Council and management board in February — followed an independent investigation into Brown’s alleged violations of the tribe’s code of ethics. The sources said the probe involved alleged breaches of confidentiality and possibly other issues.

    When Brown relinquished the chairmanship of the council and the management board — which comprise the same nine members — the tribe attributed it to “personal reasons.”

    Companies that register their debt with the SEC are required to report major events of interest to investors and shareholders. The SEC's Division of Corporation Finance "seeks to ensure that investors are provided with material information in order to make informed investment decisions, both when a company initially offers its securities to the public and on an ongoing basis as it continues to give information to the marketplace."

    While the tribe did not report Brown’s relinquishment of the chairmanship of the council and the management board to the SEC, it cited a reporting requirement in disclosing his resignation from the council: “Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.”

    In its filing, the tribe says it plans to hold a special election to fill the council vacancy created by Brown’s resignation. His term expires in 2021.

    Brown, a Montville native who spent more than 24 years in the Army, retiring as a colonel in 2011, was elected to the Tribal Council in 2013 and was re-elected to a second four-year term in 2017. Following each of the elections, the council elected him chairman.

    His February resignation as chairman stunned many inside and outside the tribe who were familiar with the high-profile role he played in promoting the tribe’s gaming and nongaming business ventures. In recent years, he frequently shared the spotlight with Rodney Butler, the Mashantucket Pequot chairman, in testifying before the state legislature on gaming bills.

    The Mohegans and the Mashantuckets, respective owners of Mohegan Sun and Foxwoods Resort Casino, are jointly pursuing a commercial casino project in East Windsor, for which they have yet to secure financing. They also have been engaged in talks with lawmakers and the governor’s office regarding further casino expansion, possibly in Bridgeport, and the introduction of internet gaming and sports betting.

    Since Brown stepped down as chairman, James Gessner Jr., the former council vice chairman, has served as interim chairman. This week’s SEC filing bears Gessner’s signature.

    b.hallenbeck@theday.com

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