Romano files lawsuit against gaming officials

Rachael Levy

Thursday, April 17, 1997 | 11:59 a.m.

In an effort to clear his name, a Las Vegas businessman who lost his gaming license in a slot-cheating case has sued the Nevada Gaming Commission, State Gaming Control Board and Attorney General Frankie Sue Del Papa for alleged civil rights violations.

Frank Romano and his wife, Maria, accused the state agencies in a lawsuit filed Wednesday in federal court of covering up evidence that would have proven he was innocent in 1989 of participating in the cheating scheme.

Romano was part-owner of American Coin Machine Co. and American Coin Machine Enterprises Inc., which made and distributed slot machines at bars and other locations throughout Clark County from 1981 to 1989.

In August 1989, the Gaming Commission suspended Romano's license and those of his partners, brother-in-law Rudolph M. LaVecchia and father-in-law Rudolph LaVecchia, the lawsuit said.

The Gaming Commission also fined the businessmen and seized their video poker machines. Slots at 60 Clark County locations had been "gaffed" to prevent players from winning jackpots by drawing royal flushes when the maximum coins were bet.

Romano and his attorney, Edward Coleman, threatened a federal lawsuit last summer after the Gaming Commission rejected the businessman's petition to restore his gaming license and refund the $275,00 fine.

The Gaming Commission ruled that it did not have legal jurisdiction to allow Romano to present evidence that he said proved the Control Board knew he was not involved in the slot-rigging scheme.

Romano argues that his civil rights were violated, first, when the Control Board did not reveal all its evidence, and, second, when the Gaming Commission refused to review that evidence. He also said his former attorney did not give him adequate representation. The suit is seeking more than $6 million in damages.

If a federal judge accepts the case and rules in Romano's favor, the lawsuit could dilute the power of states to regulate gaming. To date, courts have upheld Nevada's right to regulate the gaming industry without affording certain due-process rights to licensees. There has never been a decision based on civil rights issues.

Gaming critics in Congress have expressed an interest in the case, indicating they may use it to prove state oversight is inadequate and federal controls are needed to protect gaming's integrity.

Romano appeared on the ABC news show "Prime Time Live" on March 12, criticizing the state's regulatory system.

Romano's evidence includes internal Control Board memos and the testimony of an informant and investigator who allegedly said Romano "was and is not culpable with respect to the 'cheating' engaged in by his partners," the lawsuit said.

The informant, Larry Volk, was murdered in 1990.

Romano said he obtained this evidence when he sued the LaVecchias in U.S. Bankruptcy Court and won a multimillion-dollar judgment against them. This week, a U.S. district judge issued arrest warrants for the LaVecchias for failing to follow the Bankruptcy Court's judgment.

The Gaming Commission has steadfastly denied Romano's allegations that it covered up evidence and pointed out that Romano voluntarily gave up his license, passing on his day in court.

Earlier this month, Romano said he had been secretly cooperating with the attorney general's alleged investigation of the Control Board. He said he met with Del Papa last summer to assure her he had proof of the Control Board's alleged wrongdoing.

Del Papa has refused to comment on her meeting with Romano, stating only that her office interviewed the businessman several times as part of its investigation of Control Board electronics expert, Ron Harris. Harris has pleaded guilty to slot cheating.