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Native American group sues Wisconsin bank, alleging discrimination

News Compliance Courier

NEWS:  A Native American cultural and religious center based in Wisconsin has sued a northern Wisconsin bank, accusing it of discrimination for refusing to open a checking account for the organization on the grounds that the members engage in ritual and sacramental use of peyote, according to Law 360. 

Mashkikii-Boodawaaning Inc., also known as Medicine Fireplace, filed a complaint in Wisconsin federal court against Chippewa Valley Bank and its parent company, Chippewa Valley Agency Ltd. The complaint asserts counts of racial and religious discrimination.
 
According to the complaint, Medicine Fireplace is a non-profit Native American religious organization that uses peyote in bona fide religious ceremonies. Peyote is a psychoactive cactus species that has been used in Native American religious ceremonies and spiritual healing for centuries, the complaint states.
 
The U.S. government has recognized the sacramental use of peyote by Native American organizations and tribes by protecting its use under federal law. According to the complaint, the “non-drug use of peyote in bona fide religious ceremonies of the Native American Church” has been exempted by the U.S. Department of Justice, and peyote is not considered a controlled substance under those circumstances.
 
Wisconsin law goes along with federal law in this area, the complaint states, and exempts peyote’s non-drug use for bona fide religious ceremonies of the Native American Church.
 
Medicine Fireplace claims Chippewa Valley Bank violated federal and state law by refusing to open a checking account for the organization due to Medicine Fireplace’s use of peyote in religious practice.
 
According to the complaint, when Medicine Fireplace first attempted to open an account at the bank last year, the bank’s branch manager cited the organization’s peyote use as the reason for the denial.
 
“[The branch manager] cited Medicine Fireplace’s peyote use as the reason for the denial, based on Chippewa Valley Bank’s incorrect assertion that peyote use is illegal in all circumstances under Wisconsin state law or, alternatively, based on Chippewa Valley Bank’s refusal to recognize the statutory exceptions authorizing peyote use in bona fide religious ceremonies of the [Native American Church of North America],” the complaint states.
 
Counsel for Medicine Fireplace eventually sent a demand letter to Chippewa Valley Bank’s CEO, Mike Gerber, raising allegations of religious and racial discrimination, according to the complaint.
 
The organization says Gerber responded by denying the allegations and claiming the denial of the account was due to “Chippewa Valley Bank’s limited resources to assure proper control is being provided and proper handling of an account by a customer.”
 
The complaint states that Chippewa Valley Bank has continued to refuse to serve Medicine Fireplace as a customer and has yet to open a checking account for the organization.
 
The organization claims that Chippewa Valley Bank has “no justifiable reason to ignore the religious significance and legally protected status of Medicine Fireplace’s bona fide religious ceremonies.”
 
Medicine Fireplace seeks damages, a jury trial, attorney fees and an injunction requiring the bank to open a checking account for the organization and cease all forms of discrimination against Native American individuals and organizations.