Lawyers ask gaming panel to dismiss Binion counts

Friday, Oct. 24, 1997 | 11:20 a.m.

CARSON CITY -- The MGM Grand contracted with "two notorious felons" -- fight promoter Don King and former heavyweight champion Mike Tyson -- and state regulators never took any disciplinary action against the resort.

Las Vegas casino host Charles Meyerson dealt with unsavory individuals and he received a state gaming license.

Casino owner Steve Wynn visited convicted felon Michael Milken in prison and was never disciplined.

Attorney Richard Wright cited these three cases as examples where the state Gaming Control Board "looked the other way," yet it is seeking to revoke the license of his client, Ted Binion, accused of loaning $100,000 to a felon.

Wright and fellow lawyer Mark Ferrario urged the state Gaming Commission Thursday to dismiss three of the counts lodged against Binion before a full-blown hearing is held, possibly in January.

The commission took the arguments under submission and will rule later. Deputy Attorney General Kirk Hendrick told the commission it should hear all the evidence and make a ruling at the end of the case, rather than dismissing the counts before the hearing.

In one count, Binion, a part owner of the Horseshoe Club in downtown Las Vegas, is accused of loaning Pete Ribaste, who lives at Spanish Trail in Las Vegas, $100,000 to start a used car lot. Ribaste was convicted in Kansas City in 1989 of a federal offense involving a false bank loan application, sentenced to six months in prison and fined $10,000.

Ribaste, according to the complaint, is an associate of the Kansas City La Cosa Nostra.

Wright argued there is no evidence that Binion knew of Ribaste's conviction or reputation.

In saying that Binion was the victim of "arbitrary prosecution," Wright referred to a casino owner who made a prison visit to a convicted felon. He did not mention any names but apparently was referring to Wynn and Milken, who are neighbors at Lake Tahoe. Wright said Binion's offense "pales in comparison" to the crime committed by Milken, who pleaded guilty to six felony securities fraud counts and spent 22 months in prison.

Ferrario argued that two counts involving Binion's girlfriend, Sandy Murphy, should also be dismissed. Binion is accused of permitting Murphy to smoke marijuana in his home and associating with her because she's on probation.

This behavior, Ferrario said, does not involve gambling and the Control Board has "gone too far." There are no rules against associating with a person on probation, he said. Murphy was on probation for a drunken driving conviction in California.

Binion, Ferrario said, tried to stop Murphy from using drugs and paid for her rehabilitation. He suggested that the board was off base in citing behavior in a private home. And he wondered if gaming licensees who have drug users in their families are also in danger of disciplinary action.

Wright cited the case of Imperial Palace casino owner Ralph Engelstad, who staged a Hitler birthday party in his resort. He was fined $1.5 million. Wright said it was improper for Engelstad to do that. But if he held the party in his home, Engelstad would not have been disciplined, he said.

Wright and Ferrario asked the three counts be dismissed so they did not have to present evidence at the hearing. Wright suggested he would have to subpoena records of the MGM involving the contracts with King and Tyson, whom he described as "two notorious felons." Tyson fought at the MGM.

They suggest the hearing will be extended if these counts are not dropped. They said they must get in all the evidence if they are to appeal the case to the courts, which can decide only on the record made before the commission.

Hendrick argued that Binion has no constitutional right to a gaming license. And Binion has to follow the rules of the state to be eligible for the privilege of a gaming license.

At the time of these incidents, Binion was on suspension for use of drugs, Hendrick said. And if the case is appealed, Hendrick said, "The board feels confident the court will allow the state to regulate the industry."

The commission did permit Hendrick to amend his complaint to add a count that Binion's behavior brought discredit to the state in an incident involving a gas station attendant.

Binion was arrested Aug. 10 in Las Vegas and charged with burglary while in possession of a firearm and aiming a firearm at a human being. He allegedly got into a verbal and physical confrontation with the gas station attendant, who sprayed him with pepper spray.

Binion left the station and returned later with a shotgun, allegedly aiming it at the attendant, who again sprayed him.

The other count in the complaint charges that he associated with Herbie Blitzstein, an associate of the late mobster Tony Spilotro. Blitzstein was shot to death in his home earlier this year. The count said Binion violated regulations by associating with an unsavory character.