Sunday-The Daily News from Lebanon, Pennsylvania • 12

Sunday Pennsylvanian, Lebanon, July 15, 1984 12A was the subject of a shakedown." I called him to ask if he knew anyone who could help with these people and get them off my back, Newton told reporters. Later Newton testified before the gaming commission that he was unaware of Penosis mob ties at the time, and that Penosis assistance had worked, in that the death threats ceased. More time to find buyers would probably mean closure, and thats bad tax-wise, said former Deputy Attorney General Godfrey. He said it would also be bad concerning the note held by the Teamsters Pension Fund. Also to be considered in the decision, Godfrey said, are the employees.

Thousands of employees would also be affected, he said, because they in a sense would lose their jobs. This is an important case, Godfrey and his former colleagues in the attorney generals office believe. We expect an old-fashioned shoot-out before its all over, Godfrey lamented. the corporation, known as Trans-Sterling Inc. and Karat, Inc.

Tobman has agreed to pay $100,000 in fines. The stipulation also mandates that Sachs establish a fund of $200,000 to be used to run the casinos, and that any time the fund shows a balance less than $50,000, he must add to it until it is back to $200,000. According to John Godfrey, a former deputy attorney general who was in charge of the gaming division until his recent resignation to join a private law firm, the state may be faced with a dilemma. Last May Sachs informed the casino control board that he was negotiating with Wayne Newton for the sale of the Stardust and Freemont. While the entertainer is a licensed operator of the Aladdin, his purchase of the two other casinos will not be met with favor in some circles here.

As reported in 1980 by the Associated Press and NBC, Newton was under investigation then because of alleged mob ties in his association with Guido Penosi, who federal agents have said is a high-ranking member of the Gamino crime family of New York. During a public statement at the time, Newton admitted that he had been friends with Penosi for 20 years or more. Newton also said that he had called Penosi to ask help when Newton re-v ceived threats from former business associates against the life of his 5-year-old daughter. He told the AP that he called Penosi when he knew he Glick was also the target of federal agents while he operated the two casinos. A federal indictment filed last Sept.

30 in Kansas City indicates that Glick went to visit Frank Balis-trieri, the Mafia boss of Milwaukee, prior to his purchase of the casinos. Federal agents suspected then that he was asking assistance from Balis-trieri to borrow about $62 million from the Teamsters Union Pension Fund, which he later accomplished. Soon after Glicks purchase of the gambling houses, he named Frank Lefty Rosenthal, a former Chicago syndicate member and a shadowy Las Vegas figure, to run the casinos. Federal agents believed that Rosenthal was the Chicago mobs Las Vegas watchdog until the appearance of Anthony ony the Ant Spilotro in the city. Spilotro was a known Chicago thug, who had been linked to as many as 25 murders through the years.

Both he and Rosenthal had been arrested at least 40 times each before they ever settled here. Before becoming Glicks casino manager, Rosenthal operated in Florida during the 1960s, during which time he was a close associate of the late Meyer Lansky and other well-known mobsters including Joe Pater-no, a Gambino crime family member from New Jersey. Called to testify before the McClellan Rackets Committee in Washington in the mid-1960s, Rosenthal took the Fifth Amendment 38 times. Spilotro, meanwhile, is alleged to have played a role in the murder of Tamara Rand, a San Diego real es tate businesswoman who had dealings with Glick; and the murder of Rosenthals wife, Geri, in a Los Angeles motel. Spilotro is currently under federal indictment on unrelated charges.

According to federal records, Glick arranged the Teamsters Pension loans through Allen Dorfman in Chicago and Jackie and Bill Presser in Cleveland. Dorfman was killed last year in a gangland slaying in a Chicago parking lot shortly after being convicted in a federal extortion scheme. Jackie Presser is the current president of the Teamsters Union. Glicks tenure as a casino operator was not a long one. In 1978 his control of the Stardust and Freemont began to slip when agents of the Casino Control Board found that a $7 million slot machine skjm had taken place, at the time the largest in the states history.

After a lengthy struggle with state authorities, and under alleged pressure from organized crime, Glick, records show, agreed to sell the casinos to Sachs in 1979. According to the federal indictment returned in Kansas City, at least $1.6 million in skim money from the Stardust was delivered in cash to members of the Chicago syndicate during the time Glick was the owner. The money was then sent to Nick Civella, the Mafia boss in Kansas City, the indictment reveals. Civella died in prison in 1983. According to the Kansas City indictment, Carl DeLuna, described in FBI affidavits as Civellas enforcer, went to Las Vegas and ordered Glick to sell the casino property in April 1978.

Soon thereafter Glick agreed to sell to Sachs, allegedly leaving Sachs to pay off the Teamsters, Pension loans now totaling about $73 million. At the time, Sachs paid Glick $2 million he borrowed from a bank, and assumed the Teamster mortgage, for a total purchase of about $68 million. According to the New York Times, Glick has cooperated with federal agents. Both he and Sachs have denied any secret ownership by mob figures. When Sachs applied to the Gaming Control Board, its chairman, Roger Trounday, suggested that Sachs be granted only a temporary license.

The Nevada Gaming Commission, however, granted an unrestricted license. Trounday resigned his post in disgust. He said that the commission, which has the final say, refused to consider information provided by the FBI, just as it had earlier done when Glick applied for his gaming license. After Troundays resignation, an FBI affidavit was made public, according to the New York Times, indicating that key Stardust employees had been under federal surveillance, and that money was being skimmed at the casino and delivered to Joseph Aiuppa, the crime boss in Chicago, who then distributed it to Mafia leaders in other cities. According to the stipulation between Sachs and the gaming commission, Sachs has agreed to pay fines totaling about $3 million, with $200,000 of that coming from his personal account, and the balance from Jack Rubys Death Jack Ruby, the man who killed Presidential assassin Lee Harvey Oswald, died of cancer in 1967.

Washingtons Address George Washington delivered the first annual presidential message to the U.S. in 1790. BOSCOV'S SUPER SALE OF ITEMS, GADGETS THINGS FOR YOU, YOUR HOME FAMILY i) 0 0 0 0 0 0 0 i) 0 i) 0 0 i) i) 0 0 JUUUU1 DOLUARMARTIHOUSEWARESISAUE A nvu (Continued from page 4A) the casino appeared to balance. There is every reason to believe, Hollis said in one affidavit, that bogus fill slips will continue to be used as a skimming mechanism at the As one agent, who asked for anonymity said, We have only touched the tip of the iceberg. He speculated that as much as $20 million a year is skimmed in Nevada.

Most of that is siphoned off by the mob, he concluded. According to the indictment, five men working inside the Stardust would create, sign and process false and fraudulent casino records known as fill slips. These fill slips would falsely and fraudulently indicate that Stardust chips had been delivered to the casino floor to be put in play at the table games, including craps, blackjack and baccarat. The indictment states that it was part of the scheme that the chips called for on the false and fraudulent fill slips would not in fact be delivered to the casino floor to be put in play, and that a diversion of currency would be concealed from federal and state investigative authorities by the false and fraudulent fill slips that is, by creating, signing and processing said fill slips the defendants made it appear that the Stardust cage was in balance and that no diversion of currency had taken place. Charged in the federal case, in addition to the Stardust as a corporation, are Louis Joseph Salerno, 56, a casino manager; Frederick Arnold Pandolfo, 44, assistant casino manager; Lawrence F.

Carpenter, 34, a Stardust cage cashier; Vincent Sam-marco, 60, a casino executive; and James F. Gabriele, 68, a casino messenger. Five others were also indicted on federal contempt charges because they lefused to answer questions before the grand jury. All of the defendants have pleaded not guilty. The 28-count federal indictment charges that through racketeering, mail fraud and conspiracy, the defendants diverted about $3.9 million from the Stardust alone during the time that it was owned by Sachs.

Neither Sachs nor Tobman were charged by the federal grand jury. According to a 29-count complaint filed before the Nevada Gaming Commission, as much as $25,000 was skimmed from just one baccarat pit in a single shift. The scheme, according to investigators, worked when a blackjack dealer; for example, would request that a floor runner bring him more chips from the cage. By documenting with paper work that the chips were delivered, the cage count would In fact, however, the dealer never received the chips. Rather, the cash representing the chips became the skim.

Court records also show that the Stardust has a history of organized crime involvement in various skims through the years. When it was first licensed, records show, the Stardust was owned by a Desert Inn group led by Morris Moe Dalitz, a well-known organized crime figure and former bootlegger from Cleveland, whose arrest record for illegal gambling spans many years in Ohio. Under intense pressure in 1967, Dalitz sold his interest in the Desert Inn to the late Howard Hughes, the recluse billionaire, who lived at the hotel for four years. Several years later, federal officials blocked Hughes from buying the Stardust on antitrust grounds, which forced Dalitz to sell to a firm known as the Parvin Dohrman at the time headed by Delbert Coleman. Coleman and his partner, Edward Torres, who also purchased the Aladdin Hotel-Casino, were targets of agents from a federal Organized Crime Strike Force in the 1970s.

After signing a consent decree to settle a major Security and Exchange Commission lawsuit alleging stock fraud in the purchase of three other Nevada casinos, Coleman left Nevada. Colemans partner, Torres, became a partner with entertainer Wayne Newton. Together, they paid $85 million for the facility in 1980, soon after it had been closed down by Nevada authorities for 11 weeks. The state had charged that the previous owners had hidden interest convictions of the hotel corporation and several of its top officers." Dalitz, meanwhile, remains the owner of the Sundance, which until the recent stipulation, was run by Sachs under a leasing agreement. Dalitz is expected to announce Thursday that he will apply for a casino license to operate the Sundance while continuing to search for a buyer.

As early as 1973, records show, when Coleman owned the Stardust and Freemont, there were several loans made to the casinos from the Teamsters Union Pension Fund totaling as much as $65 million. The loans had been made at the behest of then Teamster Union President James R. Hoffa, who disappeared in 1975 from his Detroit home and is presumed dead, a suspected target of organized crime hit. The Stardust and Freemont were purchased in 1973 by Allen R. Glick, a 32-year-old real estate developer from San Diego, who formerly lived in Pittsburgh.

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