Binion factions gain more time for buyout

Wednesday, April 29, 1998 | 10:04 a.m.

A third front opened up Tuesday in the Binion family battle for control of the Horseshoe Club.

Horseshoe President Jack Binion and his sister, Becky Behnen, suing each other in court, joined forces to persuade the Nevada Gaming Commission to give them more time to buy out their brother, Ted Binion, whose license has been revoked.

Following a special two-hour hearing, the Gaming Commission voted to allow the Horseshoe Club Operating Co. 45 days, rather than the 10 days required by state law, to purchase Ted's 20 percent interest in the downtown hotel-casino.

The commission also ordered the Horseshoe to give Ted $4 million in back dividends withheld since his license was suspended in 1996 for disobeying a commission order to stay out of the Horseshoe's operations.

On Monday, the commission issued its five-page written order revoking Binion's license because of ties to murdered underworld figure Herbie Blitzstein.

That meant the Horseshoe had just 10 days to assess the value of Binion's holdings and come up with the money to reclaim his stock.

Horseshoe attorney Frank Schreck told the commission Tuesday the company was able to accomplish that task in 10 days.

He said the Horseshoe did not have sufficient cash flow to buy back Binion's interests outright and could not obtain financing on such short notice.

Schreck said the transaction was complicated by the "significant acrimonious litigation" between Behnen and Jack Binion.

Behnen recently asked District Judge Nancy Becker to appoint former Howard Hughes confidante Robert Maheu as an independent receiver to run the Horseshoe until her legal battle with Jack is resolved.

Behnen, trying to buy out Jack's 42 percent interest, accused her older brother of steering the Horseshoe toward "financial ruin" while pursuing his lucrative gaming interests outside Nevada.

A hearing is set for May 18.

In granting the extension to buy back Ted Binion's stock, the commission told the Horseshoe it would have to adhere to the 45-day deadline or face sanctions.

State Gaming Control Board Chairman Bill Bible said afterwards he would schedule a hearing immediately after the 45 days had passed to consider approving the stock transfer.

During the hearing, Ted Binion's lawyers, Mark Ferrario and Richard Wright, appealed to the commission to follow the letter of the law and force the Horseshoe to buy him out within the 10 days.

Ferrario said any delay would work against his client's interests.

Ted's stock, he said, could be worth much less if the legal battle between Behnen and Jack Binion deteriorates further.

Lawyers for Behnen and her two brothers declined to estimate how much Ted's interests in the resort are worth.

Jack Binion appeared particularly irritated when a reporter inquired about the value during a break in the hearing.

The Horseshoe, founded by the late gaming pioneer Benny Binion, is one of the last family owned casinos in Las Vegas.

Behnen and her sister, Brenda Michaels, who lives in Texas, each own about 18.5 percent of the company. Michaels is not a party to the litigation.

Ted Binion, meanwhile, has vowed to go to District Court to fight his revocation.

He has acknowledged a social and business relationship with Blitzstein, once a top lieutenant of the late Chicago mob kingpin Anthony Spilotro, prior to Blitzstein's Jan. 6, 1997, slaying.

Six associates of the Los Angeles and Buffalo crime families have been indicted for Blitzstein's murder.