Culinary protests Frontier fines

Lynn Waddell

Thursday, Jan. 29, 1998 | 10:46 a.m.

If you thought the strikers at the Frontier Hotel were dozing after 18 months, you didn't witness their presence at the Nevada Gaming Commission meeting

There wasn't enough room to hold the strikers who pleaded for strict punishment against the Strip casino for violating 77 cash reporting regulations. The Frontier was cited for more than $550,000 of cash transactions that were improperly handled over 2.5 years.

"In my neighborhood, if you do wrong and get caught you're gonna pay," said Hattie Canty, Culinary member. "You go to jail. We can't afford any double standards."

Nevertheless, the Gaming Commission approved a settlement the casino had worked out with the State Gaming Control Board. Under the agreement, the hotel must pay a $100,000 fine and hire an outside auditor to ensure future compliance.

"That's going to be a mistake," said Theresa McGuire, Culinary researcher. "They should take a tougher stand if they want to keep state control."

Nevada is the only state exempt from federal enforcement in anti-money laundering regulations. The Control Board has the responsibility of enforcing those federal regulations.

But the state's effectiveness has come under recent federal scrutiny, causing fear among many that Uncle Sam will take over the enforcement role. Last summer, a congressional subcommittee criticized Nevada's exemption, claiming the state doesn't have the manpower to enforce the law.

Other casino operators have also worried that the reporting violations could draw more federal scrutiny, but for different reasons. About 35 casino owners voiced concern to Gov. Bob Miller in February that the union's outburst about the Frontier's violations could hurt them.

Shortly afterward, two of the three Control Board members approved the $100,000 settlement with the Frontier. Chairman Bill Bible refused to sign the agreement, saying he needed more information from the Frontier to determine if the fine was adequate.

Bible refused to say Thursday whether he approved of the commission's action.

Commission Chairman Bill Curran acknowledged the seriousness of the Frontier's violations, but said that the fine had to be proportionate to fines already levied for such violations.

"It's obvious the federal Treasury report emphasizes a scrutiny on this kind of transaction, so for us to maintain an independent authority, maybe we will have to re-evaluate the penalty in the future," Curran said. "But fairness is required. We have to have consistency."

This was the 16th complaint the board has filed against a casino for violating anti-money laundering regulations.

Frontier General Manager Tom Elardi said he thought the $100,000 fine was in line with what other offenders have been taxed. All of the Frontier's violations took place just after the Elardi family bought the casino in 1988, and none have occurred since 1990.

Although union members were disappointed with the commission's action, the approve I didn't come easily. The board's agreement didn't call for a compliance officer or committee. Curran and other commission members insisted on one, and a compromise was struck to allow the already-hired outside auditor to fill that role.