Former Lucky Star CEO indicted for CARES Act fraud

OKLAHOMA CITY (KFOR) – Brian Lee Foster, 54, was sentenced to two years in federal prison on Wednesday for his role in a Coronavirus Aid, Relief, and Economic Security (CARES) Act fraud scheme, according to U.S. Attorney Robert J. Troester.

Foster was the CEO and Director of Gaming for four Lucky Star Casinos until early 2014. He was also the former director of gaming for the Cheyenne and Arapaho Tribes, and former chairman of the Oklahoma Indian Gaming Association.

The CARES Act authorized the U.S. Small Business Administration to create the Paycheck Protection Program (PPP) in 2020, which was intended to lend money to small businesses affected by the pandemic to cover job retention and other related expenses.

According to a two-count indictment from a federal grand jury returned on Sept. 7, 2022, Foster secured more than $40,000 in PPP by providing false payroll and tax documentation under his name and the name of another. The indictment alleges Foster used the money for personal benefit.

On Nov. 15, 2022, Foster pleaded guilty to the second count on the indictment, and admitted to making false statements to a financial institution on a PPP loan application.

U.S. District Judge Scott Palk sentenced Foster to 24 months in federal prison, followed by three years of supervised release in the sentencing hearing on Wednesday.

The court also noted that Foster committed the offense while awaiting sentencing for a previous federal criminal case. On Oct. 8, 2019, Foster was charged for failing to file his federal tax returns for 2012 and 2013, and was ordered to pay over $1 million in restitution.

In addition to his sentencing, Foster was also ordered to pay $21,474.76 in restitution to the U.S. Small Business Administration.