Reno Gazette-Journal from Reno, Nevada • Page 33

Reno Evening Gazette Thursday, December 11, 198033 Jersey panel probes alleged dental plan kickbacks Hotel takeover plans delayed By JANET THOMPSON Gannett News Service By JACK McFARREN Gazette-Journal Carson Bureau Testimony by a commission accountant also revealed that the president of Rittenhouse Consulting Enterpises Ltd. of Cherry Hill, the firm that managed the union's health and welfare funds, could not account for over $150,000 in reported income for 1978. Commission Chairman Arthur Lane said the hearing will show how millions of dollars are being skimmed from union health and welfare funds by "double-dealing consultants and unscrupulous health plan managers and administrators with close links to the underworld." Rittenhouse also handled the health and welfare funds for Local 286 of the United Paperworkers International Union in Philadelphia. Carlos Simone, international representative for the paperworkers union, took the Fifth Amendment when called to the witness stand and refused to answer any questions about the union health fund or his relationship with reputed organized crime Earlier in the day, Simone and three other witnesses made an unsuccessful attempt in Superior Court to avoid testifying. Michael Stafford of Collingswood, a trustee of the bartenders' health and welfare fund, testified that Ralph Natale, former secretary-treasurer and business agent for the union, suggested that Rittenhouse be hired to handle the fund in the mid-1970s.

Natale, who is now serving time in federal prison on drug charges, is a reputed organized crime associate. Natale was one of the main characters on the FBI's tapes of reputed organized crime associates made with the cooperation of Charles Allen, a hit man turned informant. Stafford also testified that it was Natale who suggested that Rittenhouse be given a $10,000 bonus for doing a good job in handling the fund. The fund was $95,000 in the red when Rittenhouse was hired. Stafford said he was not aware that some union members are covered by a dental plan paid out of the health and welfare fund.

TRENTON, N.J. The New Jersey Commission of Investigation is out to prove the late underworld kingpin Angelo Bruno and his associates got kickbacks from at least one union dental plan in the Camden area. But after a full day of public testimony Wednesday the connection had not been shown. The missing links were expected to be revealed today when the three-day hearing into organized crime involvement in prepaid union dental plans continued. The hearing was allowed to continue Wednesday after the state Supreme Court earlier in the day denied a request by several scheduled witnesses to delay the session.

Two Irvington dentists and the administrator of their dental group are challenging the way the commission conducted its 18-month probe into 18 dental pins, six of which will be the focus of the hearing. The commission began its case by showing how present and former officers in the scandal-ridden Local 33 of the Bartenders, Hotel, Motel and Restaurant Union in Camden were friendly with Bruno and his associates. Bruno, reputedly the head of an organized crime family based in Philadelphia, was gunned down in March. 1 SPAGHETTUOYNT rsillSffi I 3 Types Pastas Slfe .) i I I lOSDaahetti Sauces Plans by an investment group that includes a California legislator, a South Lake Tahoe judge and a Beverly Hills stockbroker to take over the Hotel Nevada in Ely were delayed Wednesday by the state Gaming Control Board. The board also ordered the legislator, Assemblyman Terry Goggin, D-San Bernardino, to undergo suitability hearing if he wants to invest in a casino.

Board Chairman Richard Bunker said the panel would hold a special meeting Dec. 18 to again consider the gambling license application involving Goggin, Justice Court Judge Eugene Rasmussen of South Lake Tahoe and stockbroker Dennis Krieger would be president, treasurer and director of the White Pine operator of the hotel, with a 55 interest. A 30 percent interest would be held by the White Pine Trust, a fund established by Goggin in which his wife, Jill, would be the beneficiary. Rasmussen would hold a 2.5 percent interest, serve as a secretary and director of the hotel-casino, and as trustee of Goggin's trust. Goggin, a lawyer recently elected to his fourth term in the California Assembly, did not apply for a gaming license and apparently wouldn't benefit directly.

But Control Board members said the lawmaker should come forward for a suitability hearing anyway. Board member Jack Stratton said the trust seemed like an attempt to "cover something up." Bud Hicks, lawyer for the buyers, declined to say what the purchase price is, although he did say there be a $380,000 loan involved. The total price, he added, was "considerably more" than that. The Control Board decided to defer action on the iplan in order to get more details on the application. The board's review on Dec.

18 is scheduled immediately before a meeting of its parent state Gaming Commission where a final decision would be made. Goggin and Krieger have been involved in business dealings in California, according to stories by the Gannett News Service Sacramento Bureau. The Gannett bureau reported in September that in 1979, Goggin actively pushed for the state to under-, take a $5 million research program while he held stock in a firm that stood to benefit from the research." Goggin owned stock in Sundance Oil Co. of Denver. The principal owner of Krieger's investment banking firm, MacDonald, Krieger, Bowyer and Beyenka, is the president of Sundance Oil, the story said.

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