Scam allegedly won more than $6 million

Wednesday, June 10, 1998 | 9 a.m.

A federal complaint says the defendants would fraudulently claim slot machine jackpots without making a wager.

The Rio and Luxor hotel-casinos were victimized in the scam, according to the complaint.

Named were Dennis Nikrasch, 56; Eugene Bulgarino, 65, and Joan Bulgarino, 56, all of Las Vegas, and Ronnie McElveen, 59, of Modesto, Calif.

Cooperating witnesses said Nikrasch was a computer expert who used a hand-held, concealed device that programs slot machines to win.

The complaint said Nikrasch has a slot machine at his residence and practiced his tampering techniques on the machine.

Authorities said the ring has been operating since September 1996.

"These individuals are very clever in defeating these slot machines," said Bobby Siller, special agent in charge of the FBI's Las Vegas office.

A federal complaint, unsealed Tuesday afternoon, charges each of the suspects with conspiracy, interstate travel in aid of racketeering and interstate transportation of stolen property.

Nikrasch appeared Tuesday afternoon before U.S. Magistrate Robert Johnston with the Bulgarinos. Nikrasch has retained attorney Oscar Goodman to represent him in the case.

Johnston released Joan Bulgarino on her own recognizance, but her husband, Eugene, and Nikrasch must remain in custody pending detention hearings scheduled for Monday. The Bulgarinos told the magistrate they could not afford to hire their own lawyers.

Attorney Theodore Manos, who was appointed to represent Eugene Bulgarino, said the couple have been married 47 years. He said his client is retired.

Joan Bulgarino trembled and wiped her eyes with a tissue during the hearing.

"She's apparently never had so much as a parking ticket before," said attorney Mitch Posin, who was appointed to represent her.

Posin said he had a brief chance to read the 15-page complaint in court and it suggests his client - a longtime homemaker - played only an indirect role in the scheme. The complaint claims she served as a lookout when the slot machines were rigged.

Gregory Damm, a prosecutor with the U.S. attorney's Organized Crime Strike Force, said McElveen appeared before a magistrate Tuesday in California and was released on a $10,000 bond. He said the defendant is scheduled to appear in court in Las Vegas on Monday.

Damm declined to make any further comment on the investigation, which involved the cooperation of the state Gaming Control Board's enforcement division, International Game Technology and casinos victimized by the crimes.

In November, according to the complaint, the FBI confirmed that Eugene Bulgarino and McElveen traveled to IGT's facility in Las Vegas to obtain some type of computer chip.

"The purpose of the trip was to meet an individual at a specific time and place at the IGT facility," the complaint states.

The men were unable to acquire the device, according to the document, but Eugene Bulgarino later returned and obtained it.

A statement released Tuesday by the FBI said six search warrants were executed in connection with Tuesday's arrests - four in Las Vegas and two in Phoenix.

The complaint alleges the defendants cheated casinos by enticing others to participate in rigged slot machine jackpots, manipulating slot machines to affect the outcome of the game, possessing an unauthorized device to cheat slot machines, possessing an unauthorized key to open slot machines, and unlawfully modifying a gaming device.

The defendants are accused of carrying out their scheme on May 24, 1997, at the Rio to win a BMW automobile. The nominee winner - a person used by the defendants to win the vehicle - instead accepted $30,000 in its place.

According to the complaint, the defendants cheated a slot machine on Oct. 18 at the Luxor to win a Jaguar automobile. The nominee winner then took the vehicle to Phoenix and sold it for $57,000.

Siller said the nominee winners used in the conspiracy may still face criminal charges.

"Our investigation is not over by any means," he said.