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In the weeks before the Pamunkey Indians received federal recognition in July, leaders of the Virginia tribe were pursuing a potential casino deal with developers, according to a letter to tribal members from then-Chief Kevin Brown obtained by The Washington Post. That effort – and the resulting fallout – led to acrimony among the 208-member tribe and, ultimately, to Brown losing his job.

Landing a casino would have huge implications for the Pamunkey, who claim Pocahontas as an ancestor and have spent decades and at least $2.5 million seeking federal recognition. The impact would also be significant for Virginia, one of the few states without casino gambling, and for MGM, the behemoth that is opening a $1.3 billion casino next year at National Harbor in Prince George’s County, Md., across the Potomac from Northern Virginia.

A Pamunkey casino also could create a new obstacle for state Sen. Louise Lucas’ proposal for a casino in Portsmouth. The Pamunkey Indian Reservation is east of Richmond, near New Kent – less than 90 miles from Portsmouth.

For now, though, the tribe’s recognition is on hold because of a last-minute challenge to the designation by a California-based group that has sought to limit Indian casino expansion.

The Pamunkey tribe had refused to disclose whether it would chase casino opportunities. The letter from the former chief is the first clear suggestion that the tribe was moving in that direction.

In a June 22 letter sent on Pamunkey Tribal Government stationery to residents of the reservation, Brown accused members of the tribal council of conspiring to force him out of his position because he had decided not to sign a casino deal with a developer.

“I have seen firsthand the greed and evil a deal like this can bring out in people and have changed my position regarding gaming as a viable endeavor for the tribe at this time,” Brown said in the letter. “The Council is attempting to go forward with the development without my consent, which can cause serious legal problems for the tribe in the future.”

Brown was referring to a June 20 meeting that took place on the reservation where, he said, tribal leaders “Bob Gray, Brad Brown, Warren Cook and Ivy Hill, assisted by our former attorney, Mark Tilden, have taken it upon themselves to attempt to overthrow your traditional Government of a Chief & Council.”

The flare-up on the 1,200-acre reservation followed a proposed annual budget that would have paid the chief $100,000, the assistant chief $50,000 and the tribe’s six council members $25,000. Other itemized expenses would have brought the annual budget total to around $500,000, a huge leap from its current budget of about $30,000.

Those figures roiled the reservation’s members, with many wondering where the money would come from and questioning the fairness of the suggested salaries. While no specific developer is named in any of the correspondences, some members said they believed money for the annual budget was being provided upfront by an investor as part of a long-term deal.

“You ain’t gonna get that kind of money by opening up a little store on the reservation,” said a member of the tribe who spoke on the condition of anonymity.

Pamunkey leaders now said there is no agreement in the works.

“No, no deal has been signed, and I can’t speak any further to it than that,” said Robert Gray, who was elected chief after Brown’s departure in late June. “What you’re referring to is internal tribal affairs, and we have laws that we don’t share that.”

Tilden, the tribe’s attorney, who survived an effort by Brown to fire him, said in a statement: “All comments in the letter reflect the views and opinions of an individual Tribal member and not those of the Pamunkey Indian Tribe or its government.”

Brown declined to comment.

The prospect of the tribe opening a casino did not sit well with elected officials in Virginia who have long fought casino development. But Virginia House Speaker Bill Howell, R-Stafford, was not surprised to learn of the discussions.

“Most tribes in this country have gone the route of getting a casino license, and I had no reason to think that the Pamunkeys would be any different,” said Howell, who has been a vociferous critic of casinos throughout his career.

Despite his opposition, he said the legislature would not fight the tribe’s efforts.

“I don’t see how we could, to tell you the truth,” he said. “I’m afraid it’s a federal issue.”