Rosenthal drops loan lawsuit

Rachael Levy

Thursday, June 20, 1996 | 11:59 a.m.

Frank "Lefty" Rosenthal, the former casino executive whose life was the basis for the 1995 motion picture "Casino," voluntarily dropped his lawsuit seeking repayment of a loan, a lawyer said.

Attorney James Olson said the federal trial ended abruptly Wednesday after Rosenthal's lawyer dismissed the case against Las Vegas attorney Chris Beecroft Jr.

"They decided it wasn't prudent to proceed any further against Beecroft," Olson said.

The $150,000 loan will remain frozen in a bank account until U.S. District Judge Philip Pro determines how it should be dispersed, Olson added.

In 1989, Rosenthal gave the loan to his former Las Vegas barber, Jose Trujillo, who needed the money to invest in the purchase of a budget motel.

Trujillo said he gave the money to Beecroft. But Beecroft maintained that the money was given to him by his client, businessman Robert Algee.

When the motel purchase fell through, Trujillo asked for the money back and Beecroft refused.

Rosenthal's attorney, Marty Keach, did not return telephone calls Wednesday.

Rosenthal, a club owner in Boca Raton, Fla., chose to sue Beecroft rather than Trujillo after the barber signed a court judgment promising to repay the loan if Beecroft did not return the money.

Rosenthal was barred from Nevada casinos in the late 1980s after authorities found evidence that he associated with organized crime, including reputed mobster Anthony Spilotro.