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FRONT PAGE - Back to LAS VEGAS DEALER
The Las Vegas Dealer
for 11/1/99
Las Vegas Casinos Have A New Collection "Agency" And It Ain't The Mob.
The phone rang in the casino manager's office at the MGM. After a
minute the answer came, "Good, cut the boys a check for twenty
percent and tell them I said thanks". With that a smile came over
his face as he realized he just collected 80% of that $180,000
($144,000) which just a short time ago might have gone
uncollectable, unless you wanted to pay a guy named Vito 60% and
all the broads and booze he could consume in your penthouse
for a weekend.
But Vito's gone into the sausage stuffing business since the new
collectors came to town. And who are these boys? The D.A. No not
the "Diego Animals" the District Attorney. Yes, you heard me right,
the cops, the fuzz, the Man, Johnny Law. On Jan 31, Manuel
Nacrur was returned to Las Vegas via Miami, via Chile, where he was
hold up since owing the MGM Grand $45,000 for gambling debts incurred
in Sept'97. Peter Newgard who owed the Las Vegas Hilton a marker
for $36,000 was hold up in London where he was caught and returned
to Las Vegas in handcuffs. The Nacrur and Newgard arrest warrants
originated with the Clark County District Attorney's Bad Check Unit,
which is fast becoming the best gambling debt collector since the
boys called the Kansas City or Chicago area codes for unemployed
knee cap displacers (usually ex-football linemen or ex-meat packers
from the south side of Chicago)
By applying a state law that defines an unpaid casino marker as a
bad check, the D.A.'s office acts as the casinos' collection agency
and is using weapons those old knee-breakers could only dream about
(without going to jail) a real badge, a legal gun and the weight of
the law. You don't need the mob when you can create your own
debtors' prison and have the D.A.'s office as your "warden" and
cops from here to Miami as your soldiers. The D.A.'s Bad Check
Unit have prosecuted more than 5,000 cases involving unpaid markers.
For years talk was always that if worse came to worse, you could
always avoid paying your marker and just stay away from that casino
(except now you may have to stay out of 4 or 5 casinos since many
casinos own multiple properties and share information. But nowdays,
many casinos share marker information due to the advent of the
computer age and the mass of new players).
Now enter a very rich banker from Tokyo. This man gambles millions
every visit and with 4 of the top casinos in town with hired
concierges just to take care of this man's every whim ( a corprate
plane flys him to a private airstrip in Pahrump for a visit to the
Ranch, paid in full by the casino, yes that's right, the casinos
are now pimps (always were) and it's all legal since the brothels
are legal and paid through American Express and at 22% interest,
everyone is making money on "pussy" including Wall Street)). A 24hr
valet, a $10,000 a night "room" with everything from special oils
imported for his bath, a private swimming pool on the roof terrace,
to fresh rose peddles sprinkled all over the floor and his bed
so he can "walk and sleep on roses" (I'm not kidding). One visit
to the Rio netted them $2.75 million on one bad weekend at the
Baccarat tables. The next visit, the Las Vegas Hilton offered him
their million dollar luxury suite, a private jet from Tokyo airport
(yes, the passenger cabin floor was covered with rose peddles), a
pair of $65,000 diamond earrings to bring his wife to make up for
being gone for the weekend. This time the Asian banker (who's money
was this anyways?) dropped just over $1.25 million at baccarat and
craps. Of this amount, 25% was taken off the top just as a "nice
gesture" (most of the casinos do this) and a marker was outstanding
for just over a half-million when he returned home, after numerous
phone calls and eventually a visit from a Hilton executive trying
to collect, the Hilton was stuffed.
At the same time, another major casino was shmoozing this guy
trying to convince him that if he stayed at their hotel, the
Hilton would never get their hands on him and they would protect
him from their grasp. When asked later what their thinking was,
it was said that even if he lost a million and stuck them for half
a million, that would mean they still made $500,000. And so he
returned to Vegas with the idea he could just snub the Hilton debt,
but to his chagrin, the D.A.'s office was waiting for him when he
stepped off the airplane and within 24 hours, the $500,000 debt
was paid in full. (don't feel bad for him, he still had a million
and change left in his pocket to gamble with) and where did he
gamble? You guessed it, the Las Vegas Hilton. He dropped another
$200,000 before they flew him home covered in rose peddles.
According to the D.A.'s office "there's no question in my mind,
a marker is a check and an unpaid check is a collectable debt and
against the law if it's not paid." said Deputy district Attorney
Dan Ahlstrom quoting the statute. But whether using the D.A.'s
office to strong-arm slow-paying customers, some of whom are
prosecuted by one casino while being courted by another casino,
withstands a vigorous test in federal court, is another matter.
Although most people, after a call from the Las Vegas District
Attorney's office with a strong worded "suggestion" to pay their
debt or risk extradition and possible jail sentences, usually
pay up within minutes. It rarely takes a second call.
There is a lawsuit in federal court alleging the D.A.'s office
is violating the federal Fair Debt Collection Practices Act by
using the threat of criminal prosecution as a strong-arm tactic
to collect a debt in a civil matter, but the D.A.'s office
outlook is firm. Historically, gambling debts were uncollectable
except by means of lengthly litigation or "persuasion". But
since, Nevada's bad-check statute was amended to include casino
credit and debts, but usually no one wants to invite the obvious
public-relations nightmare. But nowdays threatening jail
rather than threatening broken knees seems to work better and
saves the casinos time and a fortune in attorney fees. The
Bad-Check Unit writes two "strongly" worded letters, then applies
for the warrant, which finds its way into the NCIC (National Crime
Info Computer) where a customs agent matches a player's name to
a visa, passenger manifest, and that's how Nacrur and Newgard
were found. Now for the bottom line, why would and how can
this Bad Check Unit operate?
They don't do this for the good will of the community. The charge
for "expenses" and "operational costs" for the Unit can run high,
but at 10-25% of the collected debt, it's still a bargain. Yes,
on the $500,000 debt, the Unit collected $50,000 and what did
they have to do? They wrote two letters and made a long distance
phone call. Not a bad line of work if you can get voted in.
Here's a little tidbit from my "Night Off":
I went to the Gold Coast to confirm a story.
A man (only the bosses and surveillance and of course, the
IRS, know who this guy was, according to the dealer, he was
just some middle age white guy, he wouldn't give any of the
dealers any information and had the bosses remind the dealers
to shut up and deal, but as soon as he started winning big,
with a $600 buy in on the Gold Coast's Mini-Baccarat table
($2,000 limit) he had to show his identification when he had
$8,000 and his next $2,000 bet would take him to $10,000 where
the 6A (IRS) regulation kicks in.
After a phonecall to Michael Gaughn, the owner of the Gold Coast,
Barbary Coast (his father, Jackie Gaughn, who own the Union Plaza
and El Cortez, (these are all toilets) the limit was raised to
$5,000. After 22 hours of non-stop play, the guy left with
$401,000 of Michael's money. The most incredible thing was that
most of the time he was playing on a full table, yet in all that
time, with all the other players and with all those chips in front
of him, no one played with him, you'd think someone would have
jumped on this guys star and ride it with him, but no one figured
his luck would last, INCREDIBLY STUPID. This is exactly how the
house takes an extra percentage in games like roulette, if black
hits twice, everyone will put their money on red, if black hits
again, they'll bet the red, and over and over, when they finally
get tired of loosing and bet the black, it'll inevitably hit red,
or it'll be too little too late. But I can guarantee one thing,
when he blows through the 400 large, he'll be back, except, like
the first time, if he buys in $600 and looses, he'll probably walk.
The Great White Whale, Australian businessman Kerry Packer was in
Vegas for the De LaHoya fight. Packer beat Steve Wynn out of $8
million between the Mirage and Bellagio. He mainly played baccarat
for up to $150,000 a hand and while they shuffled, hit the blackjack
tables for $25,000 a hand (3 spots) and tipped the dealers $600,000
and since his tips to the dealers come in bets for the dealers,
that means $300,000 of that came out of the rack, Steve Wynn's rack.
OUCH!! (now there goes a Van Gogh) But if you think this is winning,
this is compulsive playing, here are Kerry's numbers over the week.
Packer over his last week's play, between London and Vegas lost
$12 million pounds ($18 million dollars) in London. At the
Bellagio's opening last winter, Kerry was up $7 million, went
to bed, and woke up to loose $12 million, a gift of $5 million for
Wynn's opening night. From there, on the way to the airport he
stopped in the Rio and lost another $4 million. And he too shall
return.
THE AWESOME 1
TheAwesome1@yahoo.com
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Background on Kenny Pearlman
Ken Pearlman is a dealer in Las Vegas. He's been in Vegas since
1981 and a dealer for 10 years. He's been a certified flight instructor since
'86, and played guitar in the early 80's in the casino lounges at night and
made custom designed jewelry since 1977. He hails from the north side of
Chicago, and has lived everywhere from Telluride Colorado, to Long Beach
California, and has extensively photographed the southwest and shown his work
in several photography shows. He loves the 4 F's; Flying, Four wheeling, Fotograph
y, and Fun.
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