The Gambling Industry attempts to silence all reporting of assaults that occur on their premises, yet the article below raises the issue of the negligence of Parks to intervene to protect a patron.
Las Vegas boxer Floyd Mayweather sued for assault
Las Vegas, NV (KTNV)- Another lawsuit has been filed against Las Vegas boxer Floyd Mayweather Junior. This time the accusations are related to an assault that allegedly occurred outside the Palms Hotel-Casino last year.
Anthony Cliff, who lives in Clark County, filed a suit Friday in a state court in Las Vegas against Mayweather, his company Mayweather Promotions LLC and others.
According to Cliff's attorneys, Gazda & Tadayon, the incident happened on March 27, 2010, in the valet parking area of the Palms.
Cliff claims that he tried to take the boxer's photo and made some comments about a potential fight for Mayweather, when Mayweather replied that Cliff was disrespecting him and gave the thumbs-down sign to his bodyguards.
That was a "signal for the bodyguards to attack Cliff, which they then did, striking Cliff in the face, knocking, pulling or pushing Cliff to the ground,"' the suit charges.
The suit then claims that Cliff's head struck the pavement and the bodyguards repeatedly kicked him in the back and side.
Mayweather and his company are being sued for assault and battery, intentional infliction of emotional distress and negligent hiring, training, supervision and retention of employees.
The Palms is also being sued for negligence, for failing to have adequate security in the valet parking area and failing to keep Mayweather and his entourage in check.
Mayweather is no stranger to run-ins with the law. Back in 2005, he was convicted in the beating of two women at a Luxor club. He was given a suspended one year jail sentence for that crime. Since then he has also been sued for various other crimes including domestic violence, harassment, grand larceny, and most recently, defamation.
We contacted Mayweather's attorneys but they have not yet responded.
Showing posts with label Luxor. Show all posts
Showing posts with label Luxor. Show all posts
Tuesday, June 28, 2011
Wednesday, June 15, 2011
Las Vegas High-roller, Fraud Lawsuit Target Faces Hearing on Mail Fraud Charges
Interesting case worth following!
St. George Businessman Jeremy Johnson; Las Vegas High-roller, Fraud Lawsuit Target Faces Hearing on Mail Fraud Charges
(Las Vegas, NV) - A detention hearing is set for Wednesday for a Utah man tied to Las Vegas casinos, Internet poker companies and a big Las Vegas fraud case arrested Saturday on a mail fraud charge. (For Complaint, click on link)
The U.S. Attorney’s Office in Salt Lake City announced the arrest of Jeremy David Johnson of St. George, Utah, by IRS agents. A spokeswoman said Johnson was arrested at a Phoenix airport while en route to Costa Rica, where the government believes Johnson has business interests.
Johnson for years was known in Utah as a philanthropist who used his fleet of aircraft for rescue and humanitarian missions.
But last year he and his companies were sued by the Federal Trade Commission in Las Vegas in what the FTC called a nationwide $289 million Internet scam (up from $275 million alleged earlier) in which consumers were deceptively enrolled in programs to obtain government grants and for other services.
As the FTC case in Las Vegas developed, it was revealed Johnson was a high-roller at Wynn Las Vegas. He lost $1.35 million there between 2006 and early 2011 and also gambled at MGM Resorts International properties including the MGM Grand, Luxor and Bellagio.
It was also revealed Johnson lost another $1.536 million playing on the Full Tilt Poker website between April and October 2010 and that he did business with Internet poker companies.
Johnson had business ties with Las Vegas businessman Chad Elie, who was indicted in April’s federal Internet poker crackdown; and Johnson did business with SunFirst Bank in St. George, Utah, whose vice chairman, John Campos, was indicted in the same poker crackdown.
Johnson’s arrest Saturday came after a U.S. magistrate judge in Utah signed a criminal mail fraud complaint presented by Jamie Hipwell, an IRS criminal investigator assigned to the IRS's Salt Lake City post for the Las Vegas Field Office.
Similar to the FTC civil lawsuit, Hipwell alleged in the criminal complaint that Johnson, through his companies including I Works Inc. and Elite Debit – used the U.S. mail and false advertising techniques to victimize "hundreds of thousands of consumers."
Hipwell added that besides his activities in Costa Rica, Johnson "has substantial resources in other countries including real estate holdings in Belize and the Philippines."
In the Las Vegas civil lawsuit, a federal judge has frozen Johnson’s assets and appointed a receiver to preserve them.
Attorneys for Johnson last month asked the federal court to release funds held by the receiver to cover Johnson’s living expenses and legal costs.
The receiver opposed that motion, noting serious concerns about Johnson’s compliance with the asset freeze and concerns Johnson wasn’t making his assets available for sale to cover losses covered by consumers in the alleged Internet scam. The receiver also moved to sell several Johnson assets.
Attorneys for the FTC also opposed Johnson’s request, noting, among other things, "Johnson’s continuous business relationship with the Vowell brothers, the brothers with whom the Johnson defendants worked to process electronic checks for the on-line poker entities PokerStars and Full Tilt Poker."
Records in two lawsuits say Johnson and Elie have done business with well-known St. George businessmen Jason and Todd Vowell. One or both of the Vowells have been in the auto dealership industry and had an interest in the St. George Roadrunners minor league baseball team and the Liahona Academy for troubled youth in Southern Utah.
The FTC noted the founders of PokerStars and Full Tilt Poker had been charged in the April nationwide online poker crackdown with bank fraud, money laundering and illegal gambling.
In a June 1 court declaration, Johnson said: "I have had numerous business dealings with the Vowells over the last 10-plus years, one of which was that the Vowells provided money transfer services for some of Elite Debit Inc.’s clients. Neither the Vowells nor myself have been indicted for bank fraud, money laundering or any other illegal activity. Apparently, the FTC believes it ought to create undue prejudice through guilt by association."
Johnson said in an earlier court declaration that because of the FTC lawsuit and the activities of the civil lawsuit receiver, Todd Vowell has ended a business relationship with Johnson involving commercial aircraft operations.
"He explained to me that the receiver has subpoenaed information from him and he has incurred nearly $200,000 in fees and costs to deal with the subpoenas. He said that many of his business partners will no longer do business with him because of the receiver’s inquiries into his finances," Johnson wrote in that declaration. "He told me that Wells Fargo has terminated many of his business accounts because of the receivership."
St. George Businessman Jeremy Johnson; Las Vegas High-roller, Fraud Lawsuit Target Faces Hearing on Mail Fraud Charges
(Las Vegas, NV) - A detention hearing is set for Wednesday for a Utah man tied to Las Vegas casinos, Internet poker companies and a big Las Vegas fraud case arrested Saturday on a mail fraud charge. (For Complaint, click on link)
The U.S. Attorney’s Office in Salt Lake City announced the arrest of Jeremy David Johnson of St. George, Utah, by IRS agents. A spokeswoman said Johnson was arrested at a Phoenix airport while en route to Costa Rica, where the government believes Johnson has business interests.
Johnson for years was known in Utah as a philanthropist who used his fleet of aircraft for rescue and humanitarian missions.
But last year he and his companies were sued by the Federal Trade Commission in Las Vegas in what the FTC called a nationwide $289 million Internet scam (up from $275 million alleged earlier) in which consumers were deceptively enrolled in programs to obtain government grants and for other services.
As the FTC case in Las Vegas developed, it was revealed Johnson was a high-roller at Wynn Las Vegas. He lost $1.35 million there between 2006 and early 2011 and also gambled at MGM Resorts International properties including the MGM Grand, Luxor and Bellagio.
It was also revealed Johnson lost another $1.536 million playing on the Full Tilt Poker website between April and October 2010 and that he did business with Internet poker companies.
Johnson had business ties with Las Vegas businessman Chad Elie, who was indicted in April’s federal Internet poker crackdown; and Johnson did business with SunFirst Bank in St. George, Utah, whose vice chairman, John Campos, was indicted in the same poker crackdown.
Johnson’s arrest Saturday came after a U.S. magistrate judge in Utah signed a criminal mail fraud complaint presented by Jamie Hipwell, an IRS criminal investigator assigned to the IRS's Salt Lake City post for the Las Vegas Field Office.
Similar to the FTC civil lawsuit, Hipwell alleged in the criminal complaint that Johnson, through his companies including I Works Inc. and Elite Debit – used the U.S. mail and false advertising techniques to victimize "hundreds of thousands of consumers."
Hipwell added that besides his activities in Costa Rica, Johnson "has substantial resources in other countries including real estate holdings in Belize and the Philippines."
In the Las Vegas civil lawsuit, a federal judge has frozen Johnson’s assets and appointed a receiver to preserve them.
Attorneys for Johnson last month asked the federal court to release funds held by the receiver to cover Johnson’s living expenses and legal costs.
The receiver opposed that motion, noting serious concerns about Johnson’s compliance with the asset freeze and concerns Johnson wasn’t making his assets available for sale to cover losses covered by consumers in the alleged Internet scam. The receiver also moved to sell several Johnson assets.
Attorneys for the FTC also opposed Johnson’s request, noting, among other things, "Johnson’s continuous business relationship with the Vowell brothers, the brothers with whom the Johnson defendants worked to process electronic checks for the on-line poker entities PokerStars and Full Tilt Poker."
Records in two lawsuits say Johnson and Elie have done business with well-known St. George businessmen Jason and Todd Vowell. One or both of the Vowells have been in the auto dealership industry and had an interest in the St. George Roadrunners minor league baseball team and the Liahona Academy for troubled youth in Southern Utah.
The FTC noted the founders of PokerStars and Full Tilt Poker had been charged in the April nationwide online poker crackdown with bank fraud, money laundering and illegal gambling.
In a June 1 court declaration, Johnson said: "I have had numerous business dealings with the Vowells over the last 10-plus years, one of which was that the Vowells provided money transfer services for some of Elite Debit Inc.’s clients. Neither the Vowells nor myself have been indicted for bank fraud, money laundering or any other illegal activity. Apparently, the FTC believes it ought to create undue prejudice through guilt by association."
Johnson said in an earlier court declaration that because of the FTC lawsuit and the activities of the civil lawsuit receiver, Todd Vowell has ended a business relationship with Johnson involving commercial aircraft operations.
"He explained to me that the receiver has subpoenaed information from him and he has incurred nearly $200,000 in fees and costs to deal with the subpoenas. He said that many of his business partners will no longer do business with him because of the receiver’s inquiries into his finances," Johnson wrote in that declaration. "He told me that Wells Fargo has terminated many of his business accounts because of the receivership."
Thursday, February 10, 2011
$275 million scam
Man accused in nationwide scam lost millions at Las Vegas casinos, officials say
By Steve Green
A Utah man implicated in a $275 million scam victimizing consumers nationwide gambled away and lost millions of dollars at Las Vegas casinos and by playing Internet poker, investigators say.
Documents newly filed in Las Vegas federal court by the Federal Trade Commission allege Jeremy Johnson of St. George, Utah, gambled away some of his money even after he was ordered by the FTC to preserve his assets because he had been targeted in an FTC investigation.
The FTC says Johnson and his companies scammed consumers out of $275 million by luring them into obtaining trial memberships for bogus services and then repeatedly charging their credit and debit cards monthly fees for the worthless services. Johnson's attorneys deny these allegations.
The documents about Johnson's gambling were filed in advance of a hearing in which government attorneys are trying to extend a temporary order freezing the assets of Johnson and scores of associated companies.
By freezing the assets, the government can try to seize and liquidate them in order to make restitution to the alleged victims.
A court-appointed receiver company that has been sorting through the assets of Johnson and his companies reported to the court this week that Johnson's I Works company and related companies generated $332 million since 2000 in revenue related to their Internet businesses.
Of that amount, "$59 million was dissipated by supporting lavish lifestyles and investments in real properties, aircraft, vehicles, businesses, brokerage trading accounts, precious metals and was distributed or loaned to family, friends and related entities," the receiver reported.
While sustaining millions of dollars in gambling losses, Johnson, known in Utah as a philanthropist, through I Works over the years gave $1.5 million to the Church of Jesus Christ of Latter-day Saints and its Little Valley 5th Ward in St. George, the receiver reported.
Samuel Jacobson, an FTC investigator, said in a court declaration Wednesday that Johnson has been a frequent gambler at Wynn Las Vegas, the MGM Grand, other MGM Resorts International properties and also gambled extensively at the online site fulltiltpoker.com.
Tiltware LLC, owner of the website, last month provided information to the FTC showing Johnson played there using the name ginette22.
Between April and October 2010, Johnson lost $1.536 million on the poker site, Jacobson said.
Wynn Las Vegas, in the meantime, reported to the FTC that between June 17, 2006, and Jan. 21, 2011, Johnson lost $1.35 million gambling there, Jacobson said.
That includes some $836,000 lost after Johnson received an asset preservation letter from the FTC on Feb. 22, 2010, Jacobson reported.
Johnson received $120,000 in markers, or gambling credit, from the casino in November and still owed Wynn $100,000 as of Monday, Jacobson reported.
Since receipt of the asset preservation letter, Johnson has lost at least $2.371 million at the Wynn and playing poker on Full Tilt's site, Jacobson reported.
"The FTC has also received records from the MGM Grand Las Vegas in response to a subpoena, which show that Jeremy Johnson had gambling losses at various MGM casinos," he said in the court declaration.
Johnson, in the meantime, said during a Jan. 31 deposition that he has also gambled in the Philippines, in Mesquite, mostly at the Eureka hotel-casino there; in Winnemucca and Reno in Northern Nevada; and at MGM Resorts' Bellagio and Luxor resorts in Las Vegas.
Asked by an FTC attorney how often he went to Las Vegas to gamble, Johnson said: "Too often. I can tell you that. I don't know how often."
Asked how much he lost, Johnson said he didn't know but agreed it was "way too much."
Like many high-spending gamblers, Johnson said he received comps in Las Vegas such as hotel rooms and food, but not liquor since he doesn't drink.
Johnson said he was addicted to gambling but has curtailed his gambling.
"I gambled with money that I earned from my companies, and since I no longer have any of that, it's been a really good cure for me, my addiction," he said.
Asked further about his addiction, Johnson said "Sometimes I'd win a lot of money and then I'd think in my mind -- I'd try that same way and do it again, and it didn't work and didn't work. ... And you'd lose even more trying to win what you had before."
Johnson in the deposition said that besides playing poker on Full Tilt, he played online at a site called "PokerStars" as well. Johnson indicated he doesn't consider playing poker to be gambling.
Asked if he gambled online, Johnson said: "No. I played poker online. ... There's a difference."
Asked more about his online poker activities, Johnson said that at times he turned his account over to some supposed poker pros who would split the winnings with Johnson. But they made no money for Johnson, he said.
Johnson also said in the deposition that his companies had merchant account arrangements with online poker companies including Full Tilt and that he used -- with their permission -- some money belonging to the merchants to invest in oil-drilling ventures.
By Steve Green
A Utah man implicated in a $275 million scam victimizing consumers nationwide gambled away and lost millions of dollars at Las Vegas casinos and by playing Internet poker, investigators say.
Documents newly filed in Las Vegas federal court by the Federal Trade Commission allege Jeremy Johnson of St. George, Utah, gambled away some of his money even after he was ordered by the FTC to preserve his assets because he had been targeted in an FTC investigation.
The FTC says Johnson and his companies scammed consumers out of $275 million by luring them into obtaining trial memberships for bogus services and then repeatedly charging their credit and debit cards monthly fees for the worthless services. Johnson's attorneys deny these allegations.
The documents about Johnson's gambling were filed in advance of a hearing in which government attorneys are trying to extend a temporary order freezing the assets of Johnson and scores of associated companies.
By freezing the assets, the government can try to seize and liquidate them in order to make restitution to the alleged victims.
A court-appointed receiver company that has been sorting through the assets of Johnson and his companies reported to the court this week that Johnson's I Works company and related companies generated $332 million since 2000 in revenue related to their Internet businesses.
Of that amount, "$59 million was dissipated by supporting lavish lifestyles and investments in real properties, aircraft, vehicles, businesses, brokerage trading accounts, precious metals and was distributed or loaned to family, friends and related entities," the receiver reported.
While sustaining millions of dollars in gambling losses, Johnson, known in Utah as a philanthropist, through I Works over the years gave $1.5 million to the Church of Jesus Christ of Latter-day Saints and its Little Valley 5th Ward in St. George, the receiver reported.
Samuel Jacobson, an FTC investigator, said in a court declaration Wednesday that Johnson has been a frequent gambler at Wynn Las Vegas, the MGM Grand, other MGM Resorts International properties and also gambled extensively at the online site fulltiltpoker.com.
Tiltware LLC, owner of the website, last month provided information to the FTC showing Johnson played there using the name ginette22.
Between April and October 2010, Johnson lost $1.536 million on the poker site, Jacobson said.
Wynn Las Vegas, in the meantime, reported to the FTC that between June 17, 2006, and Jan. 21, 2011, Johnson lost $1.35 million gambling there, Jacobson said.
That includes some $836,000 lost after Johnson received an asset preservation letter from the FTC on Feb. 22, 2010, Jacobson reported.
Johnson received $120,000 in markers, or gambling credit, from the casino in November and still owed Wynn $100,000 as of Monday, Jacobson reported.
Since receipt of the asset preservation letter, Johnson has lost at least $2.371 million at the Wynn and playing poker on Full Tilt's site, Jacobson reported.
"The FTC has also received records from the MGM Grand Las Vegas in response to a subpoena, which show that Jeremy Johnson had gambling losses at various MGM casinos," he said in the court declaration.
Johnson, in the meantime, said during a Jan. 31 deposition that he has also gambled in the Philippines, in Mesquite, mostly at the Eureka hotel-casino there; in Winnemucca and Reno in Northern Nevada; and at MGM Resorts' Bellagio and Luxor resorts in Las Vegas.
Asked by an FTC attorney how often he went to Las Vegas to gamble, Johnson said: "Too often. I can tell you that. I don't know how often."
Asked how much he lost, Johnson said he didn't know but agreed it was "way too much."
Like many high-spending gamblers, Johnson said he received comps in Las Vegas such as hotel rooms and food, but not liquor since he doesn't drink.
Johnson said he was addicted to gambling but has curtailed his gambling.
"I gambled with money that I earned from my companies, and since I no longer have any of that, it's been a really good cure for me, my addiction," he said.
Asked further about his addiction, Johnson said "Sometimes I'd win a lot of money and then I'd think in my mind -- I'd try that same way and do it again, and it didn't work and didn't work. ... And you'd lose even more trying to win what you had before."
Johnson in the deposition said that besides playing poker on Full Tilt, he played online at a site called "PokerStars" as well. Johnson indicated he doesn't consider playing poker to be gambling.
Asked if he gambled online, Johnson said: "No. I played poker online. ... There's a difference."
Asked more about his online poker activities, Johnson said that at times he turned his account over to some supposed poker pros who would split the winnings with Johnson. But they made no money for Johnson, he said.
Johnson also said in the deposition that his companies had merchant account arrangements with online poker companies including Full Tilt and that he used -- with their permission -- some money belonging to the merchants to invest in oil-drilling ventures.
Saturday, January 15, 2011
Rio ordered to return $471,000 in gambling losses
Rio ordered to return $471,000 in gambling losses
By Steve Green
The administrator of a bankrupt Illinois company won a $471,250 judgment Thursday against a Las Vegas casino after complaining officials at the firm used company funds to pay gambling debts while it was insolvent.
The judgment was entered against Caesars Entertainment Corp.’s Rio hotel-casino in favor of William Brandt Jr., liquidating administrator of Equipment Acquisition Resources Inc. of Palatine, Ill.
Equipment Acquisition Resources (EAR) collapsed in October 2009 after it “engaged in a massive fraud by which it sold equipment at inflated prices and leased the equipment back from various lenders,” Brandt said in court papers.
In hopes of recovering funds for creditors owed $175 million, Brandt in the bankruptcy case filed adversary complaints against several organizations including the Rio, Harrah’s Las Vegas, Wynn Las Vegas and the Luxor — all on and near the Las Vegas Strip.
The complaints say that while managing EAR, executives Sheldon Player, his wife, Donna Malone, and Mark Anstett had EAR send money to the casinos to cover gambling debts and that these payments amounted to “fraudulent transfers” as EAR received nothing of value in return for the money.
A default judgment against the Rio was entered Thursday after attorneys for the casino didn’t respond to the complaint. A similar default judgment for $30,250 is pending against Caesars Entertainment’s Harrah’s Las Vegas, which also has not answered the complaint.
Caesars Entertainment didn’t have an immediate comment on the cases Thursday. If the failure to respond was inadvertent, Caesars attorneys can petition to the court to set aside the default.
Wynn Las Vegas, which allegedly received $1.785 million from EAR, is contesting Brandt’s complaint with its attorneys saying the money at issue was not the property of EAR but rather was compensation to its executives Player, Malone and Anstett.
The Luxor, owned by MGM Resorts International, is also contesting Brandt’s complaint seeking the return of $236,500.
“Malone, Anstett, Player and/or other directors, officers, employees or agents directed that their compensation be paid directly to defendant (Luxor), instead of to them,” an attorney for the Luxor wrote in court papers answering the complaint last week. “Defendant took the transfers in good faith and without knowledge of the alleged voidability of the transfers.
“At or about the time of the transfers, the debtor routinely disregarded its corporate form such that it was essentially operated as the alter ego of Malone, Anstett, Player and/or other directors, officers, employees or agents of the debtor.
“As such, any reasonably equivalent value provided by defendant (Luxor) for the transfers to the debtor, Malone, Anstett, and/or other directors, officers, employees or agents of the debtor, must be viewed as reasonably equivalent value provided to all such parties,” Luxor’s response said.
By Steve Green
The administrator of a bankrupt Illinois company won a $471,250 judgment Thursday against a Las Vegas casino after complaining officials at the firm used company funds to pay gambling debts while it was insolvent.
The judgment was entered against Caesars Entertainment Corp.’s Rio hotel-casino in favor of William Brandt Jr., liquidating administrator of Equipment Acquisition Resources Inc. of Palatine, Ill.
Equipment Acquisition Resources (EAR) collapsed in October 2009 after it “engaged in a massive fraud by which it sold equipment at inflated prices and leased the equipment back from various lenders,” Brandt said in court papers.
In hopes of recovering funds for creditors owed $175 million, Brandt in the bankruptcy case filed adversary complaints against several organizations including the Rio, Harrah’s Las Vegas, Wynn Las Vegas and the Luxor — all on and near the Las Vegas Strip.
The complaints say that while managing EAR, executives Sheldon Player, his wife, Donna Malone, and Mark Anstett had EAR send money to the casinos to cover gambling debts and that these payments amounted to “fraudulent transfers” as EAR received nothing of value in return for the money.
A default judgment against the Rio was entered Thursday after attorneys for the casino didn’t respond to the complaint. A similar default judgment for $30,250 is pending against Caesars Entertainment’s Harrah’s Las Vegas, which also has not answered the complaint.
Caesars Entertainment didn’t have an immediate comment on the cases Thursday. If the failure to respond was inadvertent, Caesars attorneys can petition to the court to set aside the default.
Wynn Las Vegas, which allegedly received $1.785 million from EAR, is contesting Brandt’s complaint with its attorneys saying the money at issue was not the property of EAR but rather was compensation to its executives Player, Malone and Anstett.
The Luxor, owned by MGM Resorts International, is also contesting Brandt’s complaint seeking the return of $236,500.
“Malone, Anstett, Player and/or other directors, officers, employees or agents directed that their compensation be paid directly to defendant (Luxor), instead of to them,” an attorney for the Luxor wrote in court papers answering the complaint last week. “Defendant took the transfers in good faith and without knowledge of the alleged voidability of the transfers.
“At or about the time of the transfers, the debtor routinely disregarded its corporate form such that it was essentially operated as the alter ego of Malone, Anstett, Player and/or other directors, officers, employees or agents of the debtor.
“As such, any reasonably equivalent value provided by defendant (Luxor) for the transfers to the debtor, Malone, Anstett, and/or other directors, officers, employees or agents of the debtor, must be viewed as reasonably equivalent value provided to all such parties,” Luxor’s response said.
Saturday, January 1, 2011
Wynn fights return of fraudulent debt payments
Wynn fights demand for return of gambling debt payments
The bankruptcy liquidator for an Illinois company tainted by fraud is encountering resistance in his efforts to recover millions of dollars he says was wrongly sent to Las Vegas casinos to cover gambling debts.
The liquidating bankruptcy plan administrator for Equipment Acquisition Resources Inc. of Palatine, Ill., William Brandt Jr., filed suit in October in bankruptcy court in Illinois against Wynn Las Vegas, the Luxor, the Rio and Harrah's hotel-casinos — all on or near the Las Vegas Strip.
The suits charge Equipment Acquisition Resources (EAR) sent checks to the casinos to cover gambling debts for EAR executives including Sheldon Player, his wife Donna Malone and Mark Anstett. Those executives all left the company before or as Brandt took over.
EAR, which claimed to be in the semiconductor machinery sales business, was forced to file for bankruptcy in October 2009 after it "engaged in a massive fraud by which it sold equipment at inflated prices and leased the equipment back from various lenders,'' the administrator's lawsuits say.
"The debtor misrepresented the value of the equipment and pledged certain equipment multiple times to secure the financing,'' the suits say, adding EAR was, "in effect, not a real, functioning company.''
EAR from October 2005 to October 2009 sent 21 checks to Wynn totaling $1.785 million so "Player, Malone, Anstett or others personally could engage in gambling and gaming activities at one or more of the Wynn casinos,'' the suit against Wynn charges.
"The debtor did not receive any value for making the payments,'' the lawsuit charges.
It further alleges some of the payments were "fraudulent transfers'' as "the debtor received less than reasonably equivalent value for the transfers.''
When the checks were cut "the debtor either was insolvent'' or had unreasonably small capital or was incurring debt it would be unable to pay, the suits say.
The suit against Wynn sought return, for the benefit of EAR creditors, of the $1.785 million. The trustee also sought $236,500 from the Luxor, $471,000 from the Rio and $30,000 from Harrah's.
Court records show the administrator has also been looking into at least $4.3 million in payments to the Horseshoe Casino in Hammond, Ind., $584,000 in payments to the Ameristar Casino in East Chicago, Ind., and at least $30,000 to the Palms hotel-casino in Las Vegas. Complaints, however, have not been filed against those properties.
Among the casinos sued, Wynn so far is the first and only defendant to answer the complaint and last week it disputed the assertions the $1.785 million should be paid back.
An attorney for Wynn argued in a court filing that the money paid to Wynn was not the property of EAR but rather was compensation to its executives Player, Malone and Anstett.
As EAR officers, board members or employees, "they were entitled to receive compensation and/or other remuneration from the debtor,'' Wynn's filing said.
"The transfers were compensation for services rendered by Malone, Anstett and/or Player,'' the filing said. "Malone, Anstett and/or Player directed that their compensation by paid directly to defendant (Wynn), instead of to them.''
Wynn's filing also argued Wynn "provided value'' to the EAR executives by "among other things, applying the transfers in satisfaction of Malone's, Anstett's and/or Player's debts to defendant (Wynn).''
The EAR bankruptcy has attracted attention in Midwest banking circles and the nation's equipment financing industry, with the liquidating officer saying the company ran a Ponzi scheme.
As part of the bankruptcy, the bankrupt company sued Player, Malone, Anstett and several limited liability companies saying EAR reported net income of $17.3 million in 2007 and $34.9 million in 2008, but charging: "Beginning in at least 2005, the individual defendants, for the purpose of enriching themselves, the Player children and the LLC defendants at the debtor's expense, misappropriated debtor's assets to purchase real and personal property and funded the LLC defendants.''
Reports in Crain's Chicago Business and Bankruptcy Court Decisions News & Comment indicate many lenders to EAR apparently were unaware its president, Player — now of Jackson Hole, Wyo., and Chicago — had served 31 months in prison for a massive loan fraud in the 1980s involving equipment sales and leasing and victimizing Greyhound Leasing & Financial Corp. of Phoenix (which later became part of FINOVA Group).
Player, then a businessman in Vernal, Utah, and Mesa, Ariz., had used phony collateral to borrow $66 million from Greyhound on the pretense it was intended for machinery leases and sales in which Player was the middleman. He instead plowed some of the money into Arizona real estate ventures and Greyhound sustained tens of millions of dollars of losses.
A 1985 Wall Street Journal story on Player quoted a Greyhound attorney as calling Player's scheme "one of the most complicated, sophisticated and convoluted frauds I've ever seen.''
The story noted that at the time, Player was an avid gambler who frequently flew in his private plane with employees and business associates to play baccarat at Caesars Palace.
With criminal investigators looking into the collapse of EAR, Player has declined comment on that case, Crain's Chicago Business reported.
EAR creditors owed some $175 million will likely recover just a few million dollars, court records show.
The bankruptcy liquidator for an Illinois company tainted by fraud is encountering resistance in his efforts to recover millions of dollars he says was wrongly sent to Las Vegas casinos to cover gambling debts.
The liquidating bankruptcy plan administrator for Equipment Acquisition Resources Inc. of Palatine, Ill., William Brandt Jr., filed suit in October in bankruptcy court in Illinois against Wynn Las Vegas, the Luxor, the Rio and Harrah's hotel-casinos — all on or near the Las Vegas Strip.
The suits charge Equipment Acquisition Resources (EAR) sent checks to the casinos to cover gambling debts for EAR executives including Sheldon Player, his wife Donna Malone and Mark Anstett. Those executives all left the company before or as Brandt took over.
EAR, which claimed to be in the semiconductor machinery sales business, was forced to file for bankruptcy in October 2009 after it "engaged in a massive fraud by which it sold equipment at inflated prices and leased the equipment back from various lenders,'' the administrator's lawsuits say.
"The debtor misrepresented the value of the equipment and pledged certain equipment multiple times to secure the financing,'' the suits say, adding EAR was, "in effect, not a real, functioning company.''
EAR from October 2005 to October 2009 sent 21 checks to Wynn totaling $1.785 million so "Player, Malone, Anstett or others personally could engage in gambling and gaming activities at one or more of the Wynn casinos,'' the suit against Wynn charges.
"The debtor did not receive any value for making the payments,'' the lawsuit charges.
It further alleges some of the payments were "fraudulent transfers'' as "the debtor received less than reasonably equivalent value for the transfers.''
When the checks were cut "the debtor either was insolvent'' or had unreasonably small capital or was incurring debt it would be unable to pay, the suits say.
The suit against Wynn sought return, for the benefit of EAR creditors, of the $1.785 million. The trustee also sought $236,500 from the Luxor, $471,000 from the Rio and $30,000 from Harrah's.
Court records show the administrator has also been looking into at least $4.3 million in payments to the Horseshoe Casino in Hammond, Ind., $584,000 in payments to the Ameristar Casino in East Chicago, Ind., and at least $30,000 to the Palms hotel-casino in Las Vegas. Complaints, however, have not been filed against those properties.
Among the casinos sued, Wynn so far is the first and only defendant to answer the complaint and last week it disputed the assertions the $1.785 million should be paid back.
An attorney for Wynn argued in a court filing that the money paid to Wynn was not the property of EAR but rather was compensation to its executives Player, Malone and Anstett.
As EAR officers, board members or employees, "they were entitled to receive compensation and/or other remuneration from the debtor,'' Wynn's filing said.
"The transfers were compensation for services rendered by Malone, Anstett and/or Player,'' the filing said. "Malone, Anstett and/or Player directed that their compensation by paid directly to defendant (Wynn), instead of to them.''
Wynn's filing also argued Wynn "provided value'' to the EAR executives by "among other things, applying the transfers in satisfaction of Malone's, Anstett's and/or Player's debts to defendant (Wynn).''
The EAR bankruptcy has attracted attention in Midwest banking circles and the nation's equipment financing industry, with the liquidating officer saying the company ran a Ponzi scheme.
As part of the bankruptcy, the bankrupt company sued Player, Malone, Anstett and several limited liability companies saying EAR reported net income of $17.3 million in 2007 and $34.9 million in 2008, but charging: "Beginning in at least 2005, the individual defendants, for the purpose of enriching themselves, the Player children and the LLC defendants at the debtor's expense, misappropriated debtor's assets to purchase real and personal property and funded the LLC defendants.''
Reports in Crain's Chicago Business and Bankruptcy Court Decisions News & Comment indicate many lenders to EAR apparently were unaware its president, Player — now of Jackson Hole, Wyo., and Chicago — had served 31 months in prison for a massive loan fraud in the 1980s involving equipment sales and leasing and victimizing Greyhound Leasing & Financial Corp. of Phoenix (which later became part of FINOVA Group).
Player, then a businessman in Vernal, Utah, and Mesa, Ariz., had used phony collateral to borrow $66 million from Greyhound on the pretense it was intended for machinery leases and sales in which Player was the middleman. He instead plowed some of the money into Arizona real estate ventures and Greyhound sustained tens of millions of dollars of losses.
A 1985 Wall Street Journal story on Player quoted a Greyhound attorney as calling Player's scheme "one of the most complicated, sophisticated and convoluted frauds I've ever seen.''
The story noted that at the time, Player was an avid gambler who frequently flew in his private plane with employees and business associates to play baccarat at Caesars Palace.
With criminal investigators looking into the collapse of EAR, Player has declined comment on that case, Crain's Chicago Business reported.
EAR creditors owed some $175 million will likely recover just a few million dollars, court records show.
Tuesday, December 21, 2010
Gambling Addiction: Massive Fraud Bankruptcy
Refurbished-equipment maker described as 'massive fraud'
Equipment Acquisition Resources Inc., which filed for bankruptcy late last year, has been described by its bankruptcy liquidator as a massive fraud that went through as much as $175 million it borrowed from lenders.
In a series of lawsuits filed in a bankruptcy court in Illinois, William Brandt Jr., of the turnaround firm Development Specialists Inc., is seeking to recover almost $2.5 million he says was wrongly sent to Las Vegas casinos to cover gambling debts.
The lawsuits were filed in October against Wynn Las Vegas, the Rio, Harrah's and the Luxor. Among the four casinos sued, Wynn as of Tuesday was the only defendant to answer the complaint.
The lawsuits charge that Equipment Acquisition Resources of Palatine, Ill., wrongly sent checks to the casinos to cover gambling debts for company executives including Sheldon Player, his wife, Donna Malone, and Mark Anstett.
Those executives all left the company before or as Brandt took over, according to court records.
Equipment Acquisition Resources, a seller of refurbished semiconductor-making equipment, filed for bankruptcy Oct. 23, 2009, after it "engaged in a massive fraud be which it sold equipment at inflated prices and leased the equipment back from various lenders," the administrator's lawsuits claim.
In his lawsuit filed against Wynn Las Vegas LLC, Brandt charges that Equipment Acquisition Resources from October 2005 to October 2009 sent 21 checks to Wynn totaling $1.785 million so Player, Malone, Anstett or others could engage in gambling at one of more of the Wynn casinos.
"The debtor did not receive reasonably equivalent value in exchange for the transfers," lawsuit claims. Brandt also alleges that some of the payments were "fraudulent transfers" because EAR received less than "reasonably equivalent value for the transfers.
In a court filing last week, Wynn disputed the claim the $1.785 million should be repaid.
Lauren Nachinson, an attorney with Quarles & Brady LLP representing Wynn, argued the money paid to Wynn was not company property rather it was compensation paid to its executives.
As Equipment Acquisition Resources executives or board members "they were entitled to receive compensation and/or other remuneration from the debtor."
"The transfers were compensation for services rendered by Malone, Anstett and/or Player," the filing said. "Malone, Anstett and/or Player directed that their compensation be paid directly to (Wynn), instead of them. The transfers were not assets of (EAR), but rather were assets" of the three former executives.
Brandt claimed when the checks were approved the company either "was insolvent" or had "unreasonably small capital" or was incurring debt it would be unable to pay.
The lawsuits seek return of $1.785 million from Wynn, $471,000 from the Rio, $236,500 from the Luxor and $30,000 from Harrah's.
Equipment Acquisition Resources Inc., which filed for bankruptcy late last year, has been described by its bankruptcy liquidator as a massive fraud that went through as much as $175 million it borrowed from lenders.
In a series of lawsuits filed in a bankruptcy court in Illinois, William Brandt Jr., of the turnaround firm Development Specialists Inc., is seeking to recover almost $2.5 million he says was wrongly sent to Las Vegas casinos to cover gambling debts.
The lawsuits were filed in October against Wynn Las Vegas, the Rio, Harrah's and the Luxor. Among the four casinos sued, Wynn as of Tuesday was the only defendant to answer the complaint.
The lawsuits charge that Equipment Acquisition Resources of Palatine, Ill., wrongly sent checks to the casinos to cover gambling debts for company executives including Sheldon Player, his wife, Donna Malone, and Mark Anstett.
Those executives all left the company before or as Brandt took over, according to court records.
Equipment Acquisition Resources, a seller of refurbished semiconductor-making equipment, filed for bankruptcy Oct. 23, 2009, after it "engaged in a massive fraud be which it sold equipment at inflated prices and leased the equipment back from various lenders," the administrator's lawsuits claim.
In his lawsuit filed against Wynn Las Vegas LLC, Brandt charges that Equipment Acquisition Resources from October 2005 to October 2009 sent 21 checks to Wynn totaling $1.785 million so Player, Malone, Anstett or others could engage in gambling at one of more of the Wynn casinos.
"The debtor did not receive reasonably equivalent value in exchange for the transfers," lawsuit claims. Brandt also alleges that some of the payments were "fraudulent transfers" because EAR received less than "reasonably equivalent value for the transfers.
In a court filing last week, Wynn disputed the claim the $1.785 million should be repaid.
Lauren Nachinson, an attorney with Quarles & Brady LLP representing Wynn, argued the money paid to Wynn was not company property rather it was compensation paid to its executives.
As Equipment Acquisition Resources executives or board members "they were entitled to receive compensation and/or other remuneration from the debtor."
"The transfers were compensation for services rendered by Malone, Anstett and/or Player," the filing said. "Malone, Anstett and/or Player directed that their compensation be paid directly to (Wynn), instead of them. The transfers were not assets of (EAR), but rather were assets" of the three former executives.
Brandt claimed when the checks were approved the company either "was insolvent" or had "unreasonably small capital" or was incurring debt it would be unable to pay.
The lawsuits seek return of $1.785 million from Wynn, $471,000 from the Rio, $236,500 from the Luxor and $30,000 from Harrah's.
Subscribe to:
Posts (Atom)
Posts
