Elks 155 “Charity gaming” cash forfeiture trial vacated
We told you long ago about the air of mystery over the Indiana Gaming Commission’s October 24, 2023 seizure of $104,950 from the Elks 155 Charity Casino on St. Joe Center Road in Fort Wayne. State of Indiana v. $104,950.00 United States Currency, No. 02C01-2411-MI-000620. On October 3, the matter was set for a one-day bench trial in Allen County Circuit Court on February 10, 2026, and we were ready to stand down our coverage until then.
However, at mid-month there was a major surprise development that led October 3, Allen County Circuit Court Judge Ashley Hand to vacate the trial date and effectively wash her hands of the case.
First, lots of background is needed to bring you up to date.
The gaming commission sought judicial forfeiture of the six-figure amount of funds, which it alleged in an ex parte application for seizure probable cause determination with the Allen County Circuit Court is connected to a pattern of alleged racketeering activity engaged in by “Bruce Naylor and/or other Interested Persons.” This all seems to relate to long-rumored (and legislatively discussed) illegal “charity gaming” in the Fort Wayne area that had turned into a casino of sorts that was operating well beyond the strictures imposed by charity gaming rules, and which had raised the ire of community leaders and lawmakers.
A docket was not opened until November 2023, and formally spelled-out details of the situation remain sparse. The docket does not include a probable cause affidavit, and one court order notes that the “Affidavit for Probable Cause is sealed in this cause until further order of the court.”
Notice of the IGC’s seizure was provided to “interested parties” that include the Elks 155 Charity Casino and the Coyote Creek Bar & Grill, as well as area residents Bruce Naylor, Eileen M. Lawton, Rodney L. Naylor, Bruce “Alan” Naylor, Matthew Naylor, and Christy Naylor. While the notice was provided in late October 2024, none had chosen to contest it or temporarily recover the cash, and no criminal charges were filed.
Since then, the world learned that this resulted from a lengthy Indiana Gaming Commission investigation and that the situation led to legislation this session (SEA 108-2025) that will crack down on certain charity organizations, their facilities, and the number of days that they may be open for certain types of charitable gaming.
So what happened here to force that IGC intervention?
WANE-TV in Fort Wayne, which brought the issues to light originally, reported long ago that the “local Elks lodge will be banned from hosting a charity gaming casino for a decade in the wake of shuttering one on the northeast side of town last year due to multiple violations, according to Indiana Gaming Commission disciplinary documents obtained by WANE 15. By April of last year, the gaming commission had received multiple complaints about the ‘FW Casino,’ once located in a strip mall at 3323 Saint Joe Center Road and run by Elks Lodge 155. An investigation by the commission led to a formal complaint against the lodge this past October (2023). A few months later, in December, the gaming commission revoked the lodge’s license.”
You may recall us telling you about complaints raised during Senate committee and floor debate about expansion of gaming by Senate Committee on the Judiciary Chair Liz Brown (R) of Fort Wayne about full-time gaming by purported charity operations in her district.
The station adds that “According to disciplinary documents, during the gaming commission’s investigation, two men who were previously barred from participating in charity gaming with the Elks were seen entering the establishment after closing hours multiple times. In a civil lawsuit last year, the gaming commission accused the two men and others connected to the casino of racketeering. In that case, the commission seized more than $100,000 from the casino. However, the two men are not charged with a crime. Neither are the others the commission accused of racketeering. The Elks demonstrated a lack of control over gaming activities, according to gaming commission disciplinary documents. The Indiana Gaming Commission found the Elks failed to train and provide security or oversight for gaming. Further, in the disciplinary documents, the Elks allowed a gaming table to have $6,000 in missing chips during one night. The lodge also provided remuneration for volunteers in the way of free entry into paid poker tournaments, as well as cash Christmas bonuses and at times, weekly cash payments, according to the disciplinary documents. Also found by the gaming commission, the lodge failed to utilize charity gaming proceeds for lawful purpose on at least 22 occasions.”
In addition, the Fort Wayne television station discovered, “According to the findings from the gaming commission, prior to the investigation, the largest amount reported in gaming proceeds in one night by the lodge was $70,000. In six consecutive nights when gaming commission staff oversaw proceedings at the casino, gross proceeds ranged from $95,000 to $122,000. The gaming commission claims the lodge underreported earnings prior to its investigation. As part of the settlement between the commission and the lodge, the commission agreed to not seek any more civil litigation against the Elks, according to disciplinary records.”
The station further explained that “According to disciplinary documents outlining a settlement between the lodge and the commission, the lodge will be required to pay the gaming commission $25,000 in damages. In addition, the lodge will need to maintain a separate gaming bank account for 12 months. The lodge is ineligible for a charity gaming license of any kind for the next three years. After that, the lodge is only eligible for tax-exempt events, single or annual raffles, pull tabs, punch boards, or tip boards. After five years, the lodge can seek a license for festivals and bingo events. Then, after 10 years, the lodge can apply for a casino game night license. When reached by WANE 15, an official with the lodge declined to comment.”
We also told you WANE-TV reported that “Russ Jehl, a member of Fort Wayne City Council who represents the city’s 2nd District where the charity casino resides, spoke about the Indiana Gaming Commission’s actions following [the December 3, 2024] City Council meeting. In 2023, Jehl spoke out against the charity casino regarding zoning concerns and potential lack of oversight. ‘My fears, unfortunately, came to a reality that a faux charity operating in a neighborhood shopping center is just not a good fit for northeast Fort Wayne,’ Jehl said. ‘It’s not really a good fit for any neighborhood.’ ” Now, he spoke to WANE 15 about the settlement. “It is good riddance for the Riviera and Canterbury area; it never should have taken place,” he says. “The City of Fort Wayne should have never gone out of its way to give a special use variance for use like this. The cautionary tale that I hope Fort Wayne and the larger community learns is that any casino, whether for profit, not for profit, or faux charity, needs to be vetted, publicly, that these things should not just be allowed to just pop up.”
But back to this court case.
There had been no activity on the court docket in the actual legal proceedings in this case from mid-January until mid-April 2025, when a series of summons and complaints for forfeiture for The Elks 155 Charity Casino were sent by law enforcement authorities and returned.
In April 2025, Bruce Alan Naylor, Eileen M. Lawton, and Rodney L. Naylor filed correspondence with the Allen County prosecutor telling the judge, “None of the undersigned has an interest in the money that was seized; therefore, we don’t intend to take any further action in this matter.”
Bruce Naylor, however, filed a formal response denying the key material allegations in the complaint, and claiming that he “legally possessed the entire sum of money that is the subject of this complaint for forfeiture.” The judge set a June 27 hearing date. Bruce Naylor appeared via phone by his counsel, Gregory Ridenour. Christy L. Naylor and Matthew Naylor appeared via phone represented by their counsel, Dana Carlson.
As agreed upon by the parties, Christy L. Naylor; Matthew Naylor; Eileen M. Lawton; Bruce A. Naylor; and Rodney L. Naylor were dismissed as interested parties, leaving Bruce Naylor as the sole interested person.
At a telephonic pretrial conference October 3, Judge Hand set a bench trial date of February 10, 2026 for what was expected to only consume one day of the court’s time. Judge Hand sets deadlines for exchanges of expert witness lists as well as lists of other witnesses and exhibits, and she closed discovery as of January 9, 2026. Depositions to be used at trial in lieu of live testimony were to be completed no later than seven days prior to the February trial. All dispositive motions were mandated to be filed by January 9, followed by a statement of contentions by both parties due January 27 . . . so everything was on track for an anticipated February court date to resolve the fate of the confiscated cash.
However, on October 17, a motion signed by Allen County Prosecutor Michael McAlexander (R) and a representative of the Indiana Gaming Commission Gaming Control Division, the State of Indiana explains that the federal government wanted the cash.
McAlexander elaborates what led to his request for a turnover order from Judge Hand. “On October 24, 2024, the Indiana Gaming Commission, Gaming Control Division, seized $104,950.00 dollars from Bruce Naylor pursuant to execution of a Seach Warrant. This seizure was incident to a lawfully executed Search Warrant, in IGC case No. IGC-2024-992, for violations of Indiana Law constituting Corrupt Business Influence said property knowingly or intentionally used while engaging in the course of; intending property to be used in the course of; derived from; or realized through conduct in violation of IC 35-45-6-2 Corrupt Business Influence.”
The circumstances of the seizure were said to be set forth in the affidavit for probable cause filed on November 1, 2024 – which, however, remains under seal as of this week.
McAlexander cites state law which provides that when property is seized, the law enforcement agency making the seizure has some options, and may, pending final disposition, require another agency by law to take custody of the property and remove it to an appropriate location as one of those options. The Office of the U.S. Attorney(presumably for the Northern District of Indiana) “has indicated that based on Federal Asset Forfeiture Law, the seized property, is eligible for forfeiture through the federal court system and custody should be transferred to the appropriate federal authority” under a court order. “[T]he Allen County Prosecutor and the Indiana Gaming Commission believe it is in the best interest of justice and judicial economy for the property to be turned over to the appropriate federal authorities for the purpose of commencement of an asset forfeiture proceeding as authorized by federal law. During the course of that federal proceeding, all interested parties will be given notice of the proceeding and an opportunity to intervene and claim an interest in property which is the subject of the federal forfeiture action.” The prosecutor’s office delivered that Notice to Naylor’s attorney the same day.
On October 20, Judge Hand executed an order authorizing “transfer and turnover custody of the $19,458.00 dollars seized” as requested by the State (note that the motion filed by the State incorrectly stated the $104,950.00 amount, as did the judge’s order, which referred to “$104,95000 Dollars”) “to the appropriate Federal Authority for commencement of an asset forfeiture proceeding in Federal Court.” In a separate October 20 motion, the judge vacated the February 10 bench trial.
Any next step is now apparently at the discretion of the federal government in a federal forfeiture action, or Naylor, in a replevin or full return request.