Suspended Horseshoe exec fails to appear before board

Thursday, March 28, 1996 | 11:59 a.m.

Suspended Horseshoe executive Ted Binion was a no-show today at a scheduled public deposition before state gaming officials exploring his continued activities at the downtown casino.

This comes as gaming agents leveled new allegations that Binion used Horseshoe property, personnel and resources since signing a Sept. 15, 1994, stipulation temporarily giving up his gaming license.

Binion's lawyer, Richard Wright, said today that he and Binion had "scheduling conflicts" and couldn't make the deposition. Binion has offered to appear another day.

At the hearing, State Gaming Control Board Chairman Bill Bible said the board has the option of pursuing the revocation of Binion's license for not appearing. But he indicated he wanted to give Binion another opportunity to meet with the board before pursuing that option.

The Control Board voted 3-0 to reschedule the hearing for 10 a.m. April 9.

In a letter Wednesday, Binion's attorneys had objected to opening the deposition to the public and allowing the three State Gaming Control Board members to question their client.

The Nevada Gaming Commission has barred the Control Board from questioning Binion at a public hearing prior to the commission's April 29 meeting on whether to ban Binion permanently from the casino industry because of continued drug use. But the commission has indicated the board may grill him at a deposition.

The board, meanwhile, filed papers late Wednesday with the commission indicating the hearing is moot because Binion has tested positive for cocaine and marijuana since the stipulation and has clearly violated his agreement with gaming regulators to stay drug free.

The board also is asking the commission for more time to investigate a string of reports that Binion has involved himself in Horseshoe business since his suspension.

Some of those allegations -- that Binion and his girlfriend, Sandra Murphy, wielded comp power at the Horseshoe and Binion signed a trademark agreement allowing his brother to use the company name in riverboat casinos outside Nevada -- have previously been reported by the SUN.

The board also alleged:

* That Binion or Murphy directed a Horseshoe cashier to cash more than $11,000 in checks written by reputed underworld figure Herbie Blitzstein, once an associate of the late Chicago mobster Anthony Spilotro.

* That Binion on at least two occasions "sought to direct" his sister, Horseshoe Co-President Becky Behnen, about the management of the casino's baccarat pit.

* That Binion personally saw Murphy "commit the crime of smoking marijuana" in his home several times.

* That Binion ordered Horseshoe employees to wire money to Murphy in California.

* That Binion received direct compensation from the Horseshoe through an interest-free line of credit. Binion and Murphy allegedly ran up $50,000 in credit on items such as bulk food for parties, airline tickets and flowers.

* That Binion directed Horseshoe workers to arrange for travel services that made use of the hotel's limousines.

* That Binion had the Horseshoe deliver free meals to him at his home.

* That Binion drove a pickup truck owned by the Horseshoe.

The board said in its papers that the majority of these activities violated the 1994 stipulation that barred Binion from receiving "any payments of any kind or nature whatsoever from the Horseshoe."

The Blitzstein allegations are the board's first public confirmation that Binion has been associating with the reputed mob associate. The SUN has reported that Binion has been observed in Blitzstein's company in recent months.

At a recent closed-door investigative hearing before the board, Blitzstein, an ex-felon, asserted his Fifth Amendment right against self-incrimination and refused to testify.

Murphy also took the Fifth when questioned under oath by agents.

Sources have told the SUN that Binion has broken off his relationship with Murphy amid the probe, and she reportedly has left Las Vegas.