Messenger-Inquirer from Owensboro, Kentucky • 19

MESSENOCR-tNQUIRZR, Thursday, March 24, 1994 SC Hisaece secretaury begins own probe of emiployees Associated Press COVINGTON Finance Cabinet Secretary Pat Mulloy has begun his own investigation in response to a state auditor's probe of whether employees were improperly influenced in awarding jobs to architects and engineers. Mulloy said he is investigating four or five Finance Cabinet employees who may have been involved, The Kentucky Post reported Wednesday. State Auditor Ben Chandler issued a subpoena to the state Department of Personnel requesting job descriptions of employees of the Transportation and Finance cabinets and other state agencies. The subpoena included a list of people employed by the state from July 1, 1992, through Feb. 28, 1994.

Chandler has shut down the state's process of awarding contracts to architects and engineers for 30 days while his office reviews whether those firms provided free meals, trips, entertainment or payments to state employees in exchange for work. The shutdown in the contracting process is delaying two highway jobs, one in Jefferson County and one in Washington, Nelson and Anderson counties. Chandler's investigation was prompted by an internal audit conducted by the Transportation Cabinet, several state officials have said. Mulloy, who has seen documents that neither Chandler's office nor the Transportation Cabinet will release to reporters, said an invoice submitted by an engineering firm prompted the Transportation Cabinet" audit "Engineering firm submitted an invoice routinely to Transportation for evaluation to get paid, and that in voice got looked at in an internal audit, and in the audit names of Transportation Cabinet employees showed up and a few Finance Cabinet employees where that firm had spent money, allegedly, entertaining those people," Mulloy said. "If it happened, it appears to have happened more than one time." The activity may or may not have been improper, Mulloy said.

But, he added, "With the environment we live in and the type of government we're trying to run, the appearance of impropriety is as important as impropriety. So I'm going to take a good hard look at it, and if it needs to be dealt with, it will be." The Finance Cabinet has not received a subpoena, although Chandler has asked for a list of cabinet em ployees with procurement authority, the newspaper reported. Chandler made the same request of the Transportation Cabinet On Monday, Chandler sent subpoenas to 14 architectural and engineering firms for records of any benefits those firms bestowed on any state employee from July 1, 1992, through Feb. 28. Chandler also has issued a subpoena to the Transportation Cabinet for records of any benefits received by members of the cabinet engineering services selection committee or any other state employee.

State law forbids state employees from receiving money or anything of value in return for services rendered. Violating the law is a felony. RZGIOH Evansville casino applicant's background questioned GOD SO LOVED THE WORLD An Easier Celebration company books. A key figure in the elder Fertitta's past was Carl Wesley Thomas, a college-educated casino executive who investigators credit with teaching the Mafia how to steal money from Las Vegas casinos. Thomas, a close friend and once a business partner of Fertitta's, was sentenced in 1983 for stealing from casinos.

Until his death last year, Thomas was listed on Nevada's "Black Book" of people banned for life from entering any casino in that check, but he declined to discuss Fertitta and the 1985 skimming case. That case was brought by the Justice Department's Organized Crime Strike Force division and aimed at reputed mob bosses who secretly controlled four Las Vegas casinos owned by the Argent Corp. Because of that control, the government alleged, organized crime was able to skim some of the gambling revenue away from the Fremont, Stardust, Hacienda and the Marina casinos before they were posted on Mai-cli 26tri- 6:00 P.M. March 27lh 10:00 AM Eatom Memorial Baptist Church 1325 Wf 3rd Street Nunery AvaitaUe Working For You Messenger-Inquirer younger Fertitta, 32, assumed control of the business, along with other family members, when his father stepped down as chairman last year. Station Casinos is a publicly held company, but Fertitta family members hold a controlling interest and some of the top executive positions.

State filings show the elder Fertitta owns 1 million shares, or 3.3 percent of Station Casinos' stock. Two sons and a son-in-law control 48.3 percent of the company's stock. Despite his diminished role in Station Casinos operations, Fertitta's past is likely to draw the scrutiny of the Indiana Gaming Commission. Gov. Evan Bayh appointed a former federal prosecutor, Jack Thar, to send a strong message to organized crime.

Thar said everyone connected with bids for Indiana casino licenses faces a thorough background Associated Press EVANSVILLE A gambling license applicant is controlled by a family whose patriarch was linked to a mob scheme to skim profits from casinos, The Evansville Courier reported Wednesday. Station Casinos Inc. founder Frank Fertitta Jr. was implicated but never charged during a 1985 criminal trial in a conspiracy to siphon money to mobsters from casinos before it was recorded on the company's books. A dozen reputed organized crime figures in Chicago, Kansas City, Milwaukee and Cleveland were convicted in federal court in Kansas City.

Evansville Police Chief Art Gann raised Fertitta's role in the case during an appearance by Station Casinos officials before a mayoral committee discussing its bid for state riverboat gambling license at Evans Liberty mayor ends feud by resigning farmer William T. Gilpin. The council would have needed a unanimous vote to remove the mayor. Jerry Foster, the council's attorney, said the mayor's resignation surprised him. He said the council will now begin searching for a new mayor.

Under state law, the council has 30 days to appoint a replacement who will serve until a special election in November. The winner of that election would serve the remainder of the term. Councilman Clark Durham also was surprised by the resignation. "This was not a case of he lost we won," Durham said. "I'm relieved this is the route we're going.

I think everybody in town from both sides agrees." Assodstsd Pitss LIBERTY Liberty Mayor Freddie Goode resigned Tuesday night apparently ending a three-month feud as the City Council prepared to start an impeachment hearing against him. Earlier Tuesday, Goode's wife and former Councilwoman Sheila Goode lost two appeals of her ouster from the council. Freddie Goode's attorney, Earl Mullins, announced the mayor's resignation, describing it as "the beginning of a peace process" in liberty's government "It is time to try to find a way without making the lawyers rich to bring an end to this divisiveness," Mullins said. "If time to make Liberty go forward." Five city councilmen have been li iilll'H Villi Cm 1 1 pAiei-alal 1 fcaiIa I i I r. X.

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Fertitta is in poor health and unable to comment on the case, Skancke said. His son, Frank Fertitta III, said his father no longer controls the publicly held company and suggested Gann and the committee contact Nevada casino authorities to satisfy themselves that Station Casinos is reputable. And Scott Nielson, Station Casinos' vice president and general counsel, suggested the 1985 case was brought up to draw attention away from the strengths of his company's proposal According to filings with the Indiana Gaming Commission, the at odds with the Goodes since the mayor took office in January and quickly fired several longtime employees, then later tried to fire, arrest and impeach the council members. The council retaliated by removing Sheila Goode on Thursday, and Tuesday she failed in two attempts to keep her seat Pulaski Circuit Judge William Cain refused to grant Sheila Goode an injunction that would allow her to keep her seat His decision followed a closed-door meeting in Somerset with attorneys from both sides. Later, state Appeals Court Judge A.W.

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