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Thursday, September 19, 2024

Former Oklahoma deputy tourism director implicated in shady deal involving Swadley's restaurants

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Oklahoma Gov. Kevin Stitt (R) | Oklahoma.gov

Oklahoma Gov. Kevin Stitt (R) | Oklahoma.gov

In emails recently published by The Frontier, former Deputy Tourism Director Gino DeMarco is implicated in some shady deal-making regarding Swadley's Foggy Bottom Kitchen.

The emails show DeMarco ensured Swadley's owner and personnel that the venture was certain to make money from the start, due to the state of Oklahoma covering significant overhead and startup costs. 

Swadley's would not pay any leasing costs for state property or equipment and would not immediately pay the state any royalty fees, the report states. 

"They make money from the start because there's no fixed asset cost, no startup cost and no labor, except for their own management," DeMarco said in an email.

According to the report, the emails show DeMarco discussing specific financial terms with both Swadley's personnel and other members of Gov. Kevin Stitt's (R-OK) administration before the restaurant deal went to contract bidding. Swadley's was the only bidder.

On May 5, Oklahoma House Special Investigative Committee Chairman Rep. Ryan Martinez (R-Edmond) announced that the committee had issued its first two subpoenas in the investigation into Swadley's. The committee was formed by order of the Oklahoma House Speaker Charles McCall (R-Atoka), according to Tulsa World.

This comes as the Oklahoma Tourism and Recreation Department entered into a contract with Swadley's to open and operate a number of restaurants across several state parks. However, as previously reported by Sooner State News, the Oklahoma State Auditor found that the state paid the company nearly $17 million. 

Whistleblower reports indicate that the restaurant chain inflated reimbursement requests and renovation quotes.

One whistleblower alleged that the owner of Swadley's, Brent Swadley, once bragged about his relationship with Stitt, saying not to worry about the restaurant's expenses because he had "a direct line to the governor,” according to Sooner State News.

Stitt later denied knowing Swadley, canceled the state's contract with the barbecue chain and filed a lawsuit against the restaurant, though Swadley refutes Stitt’s denial that he knows him.

Following his comments, Swadley told Fox 25 News, "What Kevin Stitt said, I mean, I was in tears. I couldn't believe he was going to act like he doesn't  know me."

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