The Evening Sun from Baltimore, Maryland on July 31, 1984 · 19
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The Evening Sun from Baltimore, Maryland · 19

Baltimore, Maryland
Issue Date:
Tuesday, July 31, 1984
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THE EVENING SUN, TUESDAY, JUIY 31,1984 C5, Gaming o fficials are pressing for sale of casinos New York Times LAS VEGAS, Nev.-With a crucial federal court victory behind them, Nevada gaming control officials are pressing their campaign to force the sale of two hotel-casinos here. Both casinos, the Stardust on the Strip and the Fremont downtown, have been the focus of allegations by federal and state officials that underworld figures in the Middle West own secret interests in them. Indictments on file in Las Vegas and Kansas City, Mo., say that funds were diverted, or skimmed, during the present and previous ownerships for the purpose of raising money to compensate concealed owners. Last week a federal district judge here rejected an attempt by the owner and the manager of the two hotel-casinos to delay or reverse orders by the Nevada Gaming Commission and State Gaming Control Board that the two properties be sold. The judge, Roger Foley, brushed aside assertions by Allan D. Sachs, who heads Trans-Sterling Inc., which owns the hotels and casinos, and Herbert L. Tobman, the general manager, that their property rights were being invaded. Foley said the claims "are groundless and frivolous," and "could only have been brought to delay the carrying out of the terms of settlement agreement." He praised Nevada officials for their "zeal in the public interest." In December state agents notified officials of the two casinos that they were taking action to revoke their gaming licenses because the state believed they had failed to heed warnings to put a stop to the skimming of gambling winnings at the Stardust after investigations indicated their employees were engaged in the practice. Skimming is a method of avoiding state and federal taxes by removing some winnings from counting procedures. It is also sometimes used to funnel money to underworld figures who hold hidden ownerships in casinos. The action to revoke the licenses was taken after months of investigation by state agents working closely with federal investiga-. tors in checking the operation of the Stardust for skimming. Such Federal-state cooperation had not occurred before on such a scale in the half century since Nevada licensed gambling, officials say. The Nevada Supreme Court upheld the license revocations. To avoid closing the casinos and putting several thousand people out of work, gaming control officials agreed Jan. 5 to give Sachs and Tobman until July 19 to find a suitable new owner. Then on Jan. 10 a federal grand jury here returned six indictments that accused Stardust casino employees of conspiring to skim $2.5 million to $5.2 million from January 1983 until last December Sachs and Tobman were not among those indicted. Those who were indicted were Louis Salerna, 56 years old, the operation director of both casinos; Frederick Pandolfo, 44, assistant casino manager; Lawrence Carpenter, 34, cage cashier; Vincent Sanmarco, 60, a casino executive; and James Gabriele, a messenger. The trial has been tentatively set for August. Meanwhile, the state installed new management to run the Stardust casino, while Tobman and Sachs continued to manage the hotel as well as the casino and hotel at the Fremont, where no skimming allegations were involved. The Jan. 5 agreement also obligated Tobman, Sachs and the corporations that hold interests in the Stardust to pay $3 million in fines. With the fines unpaid, the state filed liens against the Stardust July 19. Tobman said last week that he intended to pursue "my rights." Of state gaming regulators, Tobman said: "They refer to us as the mob. Really, they are the mob. You can 5" i i ' , , . . l u" - disks 0 yr?wM , i: :.) The Las Vegas Strip shines at night. look it up in the dictionary." Tobman also said he was amused by the state action to revoke his gaming license. He said, "I've never had a gaming license, and I have not been licensed as a casino manager." He could not explain why he had not been forced to meet those requirements. Four major bidders sought to buy the two hotel-casinos, including William Morris, who now owns the Landmark Towers, a hotel-casino here. From among those, Sachs and Tobman and their attorney, Fred Richman of Beverly Hills, Calif., selected Wayne Newton, the entertainer, who also had submitted a bid. Richman said one reason for Newton's success was that his bid was in proper form and filed before the others. Newton has no gaming license. Just before he signed an agreement to buy the Stardust and Fremont for $200 million, Newton's proposed purchase of the Aladdin Hotel and Casino here failed because he could not raise the $58.5 million required. Newton's financing for the Aladdin was to come from William Oldenburg, a San Francisco investment company owner, and from savings and loan interests in Salt Lake City and Hawaii. Reports published here said Newton's money for the Stardust and Fremont purchase would come from Western Savings and Loan and the Sunbelt Savings and Loan, both of Dallas. However, James Avance, chairman of the Nevada Gaming Control Board, said in an interview Wednesday that Newton's financing now "seems to be in doubt." Avance said "there is concern" on the board that the selection of Newton was a delaying tactic. He said Newton "has at the most two months" to complete the purchase. The state is examining its authority to conduct a sale of the casinos, Avance said. Those cheap stoclcs can he expensive WASHINGTON (AP)-Excited callers offering a chance to make a quick buck on cheap stocks that they say will soon rise in price have cost Americans millions of dollars in recent years, consumer and investment experts warn. The so-called penny stocks, low-priced offerings that usually involve speculation in new companies, can be legitimate but need to be checked out carefully. Failures of penny stock companies have resulted in losses of hundreds of millions of dollars, according to an investor alert issued jointly by the national council of Better Business Bureaus and the North American Securities Administrators Association. "Penny stocks are a dangerous game in which the average investor often winds up on the losing end," warned Massachusetts securities commissioner Michael Unger. The investor alert warned that in a typical penny stock fraud, the promoters assign themselves large blocks of stock at little or no cost and then begin selling shares at a nickel or a dime each. High-pressure sales tactics can push prices as high as a dollar or two, at which point the promoters sell out, making a large profit for themselves. The company then goes out of business, leaving unsuspecting buyers with worthless stock. Telling the difference between such frauds and legitimate stocks that merely have low prices requires carefully reading the prospectus of the company, checking out the broker and avoiding high-pressure sales tactics. "Although the profit potential for penny stocks may appear great, losses can also be large. Potential investors can protect themselves from fraudulent offers by carefully investigating them and learning just who is running the business and what they are promoting," said William H. Tankersley, president of the Better Business Bureaus. In most states brokers need to be registered, and a call to the state securities administrator can determine whether any legal actions have been filed against the broker. Suggestions that the broker has some sort of inside information on that the stock price can be manipuv ' lated to raise the value should be red-. flags. Companies are required to file a prospectus before selling stock. But, note: registering a prospectus with .a ' government agency, doesn't mean that the agency has approved the' stock in any way. Get a copy of the prospectus and read it before buying any stock. The securities administrators say some things to look for in a prospec-L tus include: Management: Look for the-background and experience of the company officers. Finances: Many penny stock firms have little or no capital to-work with and will be using invest tors' money just to keep the doors open. Make sure you understand the financial statement and audit sheet: If you don't, find someone who can explain it to you. ' Dilution: This is a measure of how much the stock you buy has been watered down by free or cheap shares provided to the promoters. A' dilution of 75 percent or more is cause for concern, securities officials say. Use of proceeds: This tells how much money will be used for actual product development and how much for other things, such as loans to company officers. Product: Check to see if the product has actually been tested and proven or if the promoters are using double-talk, such as "about to be tested" or stock proceeds "will allow testing." 1 Transactions with management: watch for conflicts of interest such as interest-free loans to company officials and purchases of proper-' ty from them at inflated prices. Litigation and investigations: this section tells whether any lawsuits have been filed against the firm and, often, whether there are any government investigations un-r der way. Before making any stock investment it can pay to check the company with the Better Business Bureau where the firm is located and with your state securities administrator. " 1 fes yim Sun OnSgfh s1ce aft snncDn hwj twB Avoid waiting lines and breeze on board. Use Delta's Nonstop Boarding with Advance Check-in And get 10,000 miles credit when you sign up in Delta's Frequent Flyer program. That's the biggest bonus on any airline yours with your first redemption. Plus, bargain rates on Alamo rent a cars when you fly Delta to many cities. For reservations to any of the over 100 cities Delta serves, see your professional Travel Agent or call Delta at 768-9000. Delta is ready when you are " That's the Delta Spirit Flight Attendant Karen Allen is a Delta professional. I V J r ; ri " ft - '.-iJ r a , . r y wavCJU. w fee , niTfirilTi Tiiilinrni in ' I I 'i minli irfiimaMliiiillii if urimnnrnfii Amarillo Austin DallasRWorth Oklahoma City $-flOn50 tl E M - Each way on round-trip Supreme Super Saver any Tues. or Wed. (BXE147). Fares slightly higher Thurs. thru Mon. Stay 7 to 21 days, limited seats. Make your reservations and purchase your ticket 14 days in advance. San Antonio $15950 Each way on round-trip Supreme Super Saver any Tues. or Wed. (BXE70). Slightly higher Thurs. thru Mon. Make your reservations and purchase your ticket 7 days in advance. Return as early as first Sunday or stay up to 60 days. Seats are limited. Special new low Delta fares for children good to any Delta city in the continental U.S. To DallasFt.Worth, for example, a child age 2 thru 11 flies for just $99, each way with our new Young Flyer Fare when traveling with a passenger, 12 or older, using almost any adult Delta fare. Maximum of 2 children per adult-fare passenger. Ask for full details. (To some cities, the fares apply to ages 2 thru 17.) All fares are from Baltimore and subject to change without notice. even reasons wnv mis couia oe the last loan you 11 ever need. Commercial Credit Savings & Loan's Home Equity Management Account proves that all lines of credit are not the same. Ours is better. Why? You can get up to $100,000. The Home Equity Management Account is based on the equity in your home, bo - ""W it can " tlx I 1 v. make a substantial amount of cash available to you any time you need it. Affordable Interest. Our interest rate is just 2 over the prime rate for lines of $20,000 or more. On July 1 , 1984 the prime rate was 13.00, making an annual percentage rate of 15.00. KT No Application Fees. Compared to other institutions, our Home Equity Management Account could save you hundreds of dollars. That's because there are no points, no application fees, and no annual fees. Payment Protection. Interest rate increases will not change the amount of your monthly payment. It's Easy. Once your account is open, getting a loan is as easy as writing a check. 10 Minute Application. Take ten minutes to apply for your Home Equity Management Account. Call us. We'll take your application over the phone or we can send you an application. Or stop by Commercial Credit Savings & Loan today. One Day Credit Approval. In most cases, we offer approvals in 24 hours, subject to verification and appraisal. The Home Equity Management Account. . .it could be the last loan you'll ever need. Commercial Credit Savings & Loan. From first and second mortgages to personal loans and more, we've got as many financial solutions as there are financial needs. Commercial Credit Savings &. Loan Association Baltimore: 301 N. Charles St., 21202, 332-5960; 13 W. Baltimore St., 21202, 685-5800; Lutherville: 1819 York Rd., 21093, 252-5760; Randallstown: 3695 Offutt Rd., 21133, 655-1900; Bel Air: 217 Baltimore Pike, 21014, 879-9200; Severna Park: 53 McKinsey Rd., 21146, 647-5702; Arbutus: 5209 East Dr., 21227, 242-8300; Highlandtown: 4022 Eastern Ave., 276-2133; Westminster: Westminster Professional Building, Suite 111, 532 Baltimore Pike, 21157, 848-9600 Also available at Commercial Credit Corp.: Towson: 823-3200; Overlea: 661-2200; Catonsville: 747-2111; Glen Burnie: 761-5120; Reisterstown: 833-0770; Eastwood: 633-5280 COMMERCIAL CREDIT FINANCIAL NETWORK Control Oma ComfMny For credit lines of $5,000-$9,999, the rote is Dnme plus 3, for on annual percentage rate of lo.00 on July 1. For lines of $10,000-11 9,999, the rote ts prtme plus 2?, for an annuel percentage rate of 15 50 on July 1 . All rates vary with the prime rate.

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