Four accused in scam on LV slot machines

Bill Gang

Wednesday, June 10, 1998 | 10:58 a.m.

Four people have been arrested in an alleged slot-machine scam stretching over 13 months and cheating Las Vegas casinos out of more than $6 million.

The alleged scheme netted a Jaguar from the Luxor hotel-casino -- the vehicle was sold later for $57,000 -- and a BMW from the Rio hotel-casino, although $30,000 in cash was accepted instead of that automobile.

Three of the defendants made brief court appearances Tuesday before U.S. Magistrate Robert Johnston, who ordered two to remain in custody without bail until detention hearings on Monday.

They included Dennis Nikrasch, 56, the purported mastermind of the scam, and Eugene Bulgarino, 65, an alleged key player in the operation, according to federal documents.

Bulgarino's wife of 47 years, Joan, 66, was ordered by Johnston to be released without bail pending court hearings later this month. She is alleged in the complaint to have acted as a lookout while slot machines were being manipulated to pay out large jackpots.

The fourth defendant, Ronnie Gale McElveen, 59, was arrested at his home in Modesto, Calif., according to an FBI news release.

The federal complaint tells a story of an organized group that would carefully select vulnerable machines, screen the manipulations from security cameras and guards and bring in outsiders to win the bogus jackpots without drawing suspicion. The "winners" took a slice of the proceeds -- sometimes thousands of dollars -- in exchange for a few minutes of work.

Two of the outsiders were from Phoenix, where the Bulgarinos have children and grandchildren.

Court documents allege that Nikrasch "is a computer expert who actually opens the slot machines and uses a hand-held concealed computer or device to program the slot machine to win."

An informant working with the FBI indicated Nikrasch has a slot machine in the garage at his Las Vegas home to use for practice.

The complaint alleges that in November, Eugene Bulgarino obtained "some type of computer chip" from International Game Technology, "which would assist Nikrasch in defeating slot machines."

IGT, according to the FBI news release, cooperated in the investigation conducted by the federal agency and the Nevada Gaming Control Board.

The charges claim that Nikrasch can alter a slot machine in less than a minute, leaving two of the three wheels in a winning position.

According to the complaint, the designated "winner" then takes a seat at the chosen machine while McElveen, "using a string and some type of tool," completes a final manipulation that causes the lights to turn off for about 10 seconds. When power returns, the wheels are in a winning position and the jackpot light activates.

To defray tax liability for the winners, who kept only portions of the jackpots, losing betting receipts for horse racing and sports events were provided by the defendants, the complaint states.

The complaint charges the defendants with conspiracy, interstate travel in aid of racketeering and interstate transportation of stolen property.