Shady Characters Halt and May Hurt Salinan’s Plans up in SLO

The Salinan’s, who were the Chumash’s close northern neighbors some 200 yeas ago and lived primarily between San Luis Obispo and Monterey counties and who were once believed completely extinct have, for over 10 years now, been working on obtaining federal recognition.

This effort, unfortunately, has included the financial help from sources who are now being investigated for criminal activity involving fraud.

Kelly Gearhart, a developer and builder up in Atascadero for more than 10 years, and who was once named Citizen of the Year by that city’s Chamber of Commerce, is alleged to have improperly diverted at least $1 million from local investors toward the Salinan effort to become a federally recognized tribe. Gearhart’s interest was to bankroll the tribe to get a cut of future gaming revenue.

Gearhart filed for bankruptcy protection in Ohio back in February.

Ken Gibson, an attorney acting on behalf of the U.S. trustee in the bankruptcy of Gearhart and his wife Tamara, in his complaint said Gearhart failed to report his investment in the proposed reservation and casino development as an asset in his bankruptcy filings and was therefore acting with the intent “to hinder, delay or defraud his creditors.”

The Salinan’s, who currently don’t have any reservation land, had plans for purchasing 2,500 acres somewhere in San Luis Obispo County or Monterey County, to build a 250,000-square-foot gaming casino, homes for about 400 people, a school, a hospital and a “green” energy plant.

Without a source of funding now, those plans have come to an abrupt halt and the tribe believes their association with Gearhart may hurt their petition to become a federally recognized tribe.

They aren’t giving up though…just looking for new investors.

Here are a couple links to articles concerning Gearhart and the Salinan’s:

http://www.calcoastnews.com/news.php?viewStory=172162
http://www.sanluisobispo.com/news/local/story/780327.html
http://www.standupca.org/news/kelly-gearhart-accused-of-diverting-1-million-to-salinan-indian-casino-effort/