Regulators put concerns aside over pair

Thursday, July 15, 1999 | 10:34 a.m.

After initially expressing concerns over a run-in with Idaho regulators, the Nevada Gaming Control Board approved the purchase of a Las Vegas casino by two local businessmen.

John and James Bauchman, owners of Bauchman Gaming Ventures, applied for permission to acquire Ernie's Casino at 1901 N. Rancho Drive. Their application is still subject to approval by the Nevada Gaming Commission. The casino operates 64 slot machines.

Investigators were concerned over a 1997 preliminary audit prepared by the Idaho Public Utilities Commission that questioned the accounting procedures and controls of Fremont Telecom, a rural telecommunications company in southeast Idaho acquired by the Bauchmans in 1996. The PUC report disallowed many of the company's expenses and said it had overearned by $700,000.

But the board's concerns were alleviated upon discovery that many of the allegations in the original report were later thrown out.

"This incident has heightened their awareness" of operating a business in a regulated environment, partner Scott Nielson said.

"This caused me some concern initially, but you've explained it to my satisfaction," board member Dennis Neilander said.

Once the purchase closes, the buyers intend to construct a new building at Ernie's that will eventually replace the older building. Construction is expected to take at least 24 months.