Michigan Gambling Addict Spends Stolen $$ At MGM Detroit and Gun Lake

Man turns self in for allegedly embezzling $700K with help of former casino host
Written by Lisa Roose-Church DAILY PRESS & ARGUS

A Conway Township man turned himself in today on charges he embezzled more than $700,000 from his employer, which authorities allege he spent primarily on gambling at the MGM Casino in Detroit.

Ralph Edward Staelgraeve, 45, the former director of Michigan operations for Pasta Per Trio which operated out of Staelgraeve’s home on Sober Road, was arraigned this afternoon. He is free on a $100,000 personal bond and returns to District Court on Jan. 3 for an exam conference before Judge Carol Sue Reader.

Former MGM casino host Lee Sadek, 37, of West Bloomfield, also faces the same charge. He is free on a $100,000 bond and he returns to District Court Wednesday for an exam conference.

The investigation led by Livingston County Sheriff’s Detective Sgt. Gary Childers began in December 2009 when an employee of the Wisconsin-based Pasta Per Trio’s contacted the department regarding the misuse of funds.

Company officials believe Staelgraeve stole nearly $1 million, but they can only prove more than $700,000, Childers said.

It is alleged Staelgraeve stole more than $700,000 from the company and spent it on personal purchases, including spending nearly $300,000 at the MGM Grand Casino in Detroit.

Police further allege that Sadek, who allegedly used the title casino host/marketing director for MGM, helped Staelgraeve try to hide the theft by sending emails referring to specific checks as “advertising expenses.” Police said the billboard and direct mailing advertising referenced in the emails exchanged between Sadek and Staelgraeve “never existed” and that Staelgraeve used Pasta Per Trio funds to gamble at the MGM Grand Casino and to make personal purchases.

MGM officials told police that MGM Grand does not provide advertising to Pasta Per Trio, which is the umbrella company for Noodles and Company restaurants throughout Michigan, and that Sadek was not the marketing director.

Sadek, who has not spoken with police since his arrest on Dec. 21 at Gun Lake Casino in Wayland, told detectives in May 2010 that the emails from him to Staelgraeve were altered and he denied using the marketing director title, police said.

Authorities also allege that Staelgraeve cashed and kept more than $140,000 in rebate checks from soft drink manufacturers and other vendors to Pasta Per Trio.

Neither Staelgraeve nor Sadek have spoken with police since the charges. However, police said Staelgraeve “does not deny” the allegations during a May 2010 phone conversation with a detective and Sadek claimed at that time police said.