Iowa: Commission defers discipline

Iowa regulators defer discipline against casino execs

The Iowa Racing and Gaming Commission decided Wednesday to defer possible disciplinary action against two Iowa casino executives until criminal allegations against them are resolved in court.

M. Brent Stevens, chief executive officer of Peninsula Gaming, and Jonathan Swain, Peninsula’s chief operating officer, have both pleaded not guilty in Polk County District Court. They have been accused by special prosecutor Lawrence Scalise of making illegal contributions last year to Gov. Chet Culver’s re-election campaign.

Peninsula Gaming operates the Diamond Jo casinos in Dubuque and Worth County.

Commission Chairwoman Toni Urban of Des Moines said the regulatory panel discussed the special prosecutor’s charges at their regular meeting on Wednesday because its members didn’t want the public to think they were ignoring the possibility of discipline against the Peninsula executives.

Both Stevens and Swain hold state licenses that permit them to hold key posts in Iowa’s casino industry, and a criminal conviction could result in action against their licenses.

“The fact is that we are not going to sit as the judge and jury. We don’t know what the facts are, and so we are going to wait until there is a disposition of charges,” Urban said.

Scalise filed the charges against Stevens and Swain while investigating $25,000 in 2009 contributions to Culver’s political campaign. No charges were filed against Culver or anyone involved in his campaign, and the campaign donated the $25,000 to charity, which is allowed by law to dispose of questionable campaign contributions.

Stevens and Swain are accused of illegally making a campaign contribution in the name of another. They are also charged with willful failure to disclose a campaign contribution. The charges are serious misdemeanors, carrying a maximum sentence of one year in jail and a $1,875 fine.

Also facing charges in the case are Davenport lawyer Curt Beason, Fort Dodge businessman Steve Daniel, plus Peninsula Gaming and Webster County Entertainment, which unsuccessfully sought a state casino license last spring. All have pleaded not guilty.