Binion siblings bicker about control

Thursday, Feb. 29, 1996 | 11:59 a.m.

The signature of suspended Binion's Horseshoe Club executive Ted Binion appears on a lucrative trademark agreement struck among the casino's shareholders eight months after the state banned him from business dealings there.

The May 8 license agreement, which has raised concerns among state gaming regulators, was submitted in court papers by Binion's brother, Horseshoe Club President Jack Binion, earlier this month in his battle with his sister, Becky Behnen, for control of the casino.

Jack Binion, according to the agreement, was to give the three other Horseshoe shareholders -- Behnen, his other sister, Brenda Michael and Ted -- $1.7 million each for the right to use the company name on riverboats in Louisiana and Mississippi.

Behnen and Michael each received their $1.7 million, sources said.

But Ted Binion today, denying wrongdoing, said he never sought money and didn't receive any from his brother.

"I didn't get one quarter," Binion said. "(Jack) just wanted legal clearance to use the name."

On Sept. 15, 1994, Ted Binion signed a stipulation with the State Gaming Control Board agreeing to surrender his license and stay out of the Horseshoe Club's operations for the next 16 months. He also was barred from receiving any payments from the casino and was fined $250,000.

The disciplinary action, the result of drug abuse allegations, has come up for review this year, and the Control Board is contending Binion violated the agreement by failing a drug test.

Control Board Chairman Bill Bible said Wednesday he now wants to investigate whether Binion's signature on the trademark agreement amounts to another violation of the 1994 stipulation. But Bible added he's unsure whether last week's Nevada Gaming Commission vote will hamper the probe.

"The document presents a number of important issues relating to Mr. Binion's compliance with the 1994 settlement with the board," Bible said.

"Normally, the board would thoroughly investigate these issues over a period of time to determine whether the stipulation has been complied with. However, I am concerned the commission's vote may restrict the board's ability to do that."

Last week, after Binion's lawyers claimed the Control Board was biased against Binion, the commission voted to instruct the board to bypass its regular investigative procedures in this case, including cross-examining Binion at a public meeting.

The commission has set an April 29 hearing on whether to banish Binion permanently from the casino industry because of the drug allegations.

Ted Binion insisted he did nothing improper in signing the trade agreement after being ordered to stay out of the Horseshoe's business.

"How could they (Control Board) have any concerns?" he asked. "This wasn't Horseshoe business. This was my brother's personal business."

Binion said the deal was agreed upon years ago, when Jack Binion informed everyone he wanted to branch out on his own into Louisiana and Mississippi.

Jack Binion could not be reached for comment today.

Behnen, who filed suit in January to remove her brother as president because of alleged mismanagement, declined comment. So did her lawyer, George Kelesis.

Jack Binion's lawyer, Morton Galane, who filed the trademark agreement in District Court on Feb. 16 on Binion's behalf, also declined comment.

His longtime gaming lawyer, Frank Schreck, said he knew nothing about the agreement and did not want to discuss it.

But a legal source close to the Binions suggested there was nothing improper about Ted signing the document as part of his ministerial functions as a Horseshoe shareholder.

The Binion family has been feuding in recent months about the direction of the Horseshoe Club, founded by the late Benny Binion, a Las Vegas gaming pioneer.

Behnen, recently named co-president with Jack as the dispute has festered in court, alleges her brother is ignoring the Horseshoe and spending too much time on independent gaming ventures outside Nevada.

Binion, who has the largest share of the company with 43 percent, contends Behnen doesn't understand the gaming business and is hurting the company.

District Judge Michael Douglas has set a hearing Monday to determine whether he should order a shareholders meeting to elect new board members for the company.