2 tagged for state’s Black Book

David Strow

Friday, July 16, 1999 | 10:27 a.m.

The Nevada Gaming Control Board on Thursday formally nominated two convicted felons for inclusion in the state's so-called "Black Book."

The nominations label Peter Jay Lenz of La Jolla, Calif., and John Edward Mealey Jr. of Reno "threats to legalized gaming in Nevada." The Gaming Commission will vote on whether to add the two to the Book after each has been served with the Gaming Control Board complaints against them.

Lenz, a four-time convicted felon, has been involved in illegal bookmaking activities in California and Arizona for the past 20 years. During his latest bookmaking trial, federal investigators showed that Lenz was using Nevada casinos to run large quantities of bets taken at his operations in California and Arizona. Lenz was convicted on those charges in San Diego in 1996.

Lenz maintains accounts at numerous Nevada casinos under a variety of aliases, deputy attorney general Keith Kizer said. While imprisoned, he had his wife continue to make bets on his behalf, Kizer alleged.

Kizer also stated that Lenz regularly associates with three current Black Book members, including convicted sporting event fixer Richard "The Fixer" Perry.

"Life is about choices," board member Robert Siller said. "This person has obviously made the choice to disrespect the law ... and continues to be a threat to legalized gaming."

Mealey's nomination was triggered by a guilty plea in May to charges that he used a slot machine rigging device at the Eldorado hotel-casino in Reno. Mealey has four convictions, two of them felonies, for casino cheating. Mealey will be sentenced on the Eldorado charge in August. He had last been charged with slot cheating in 1989.

"This person is a habitual criminal," board Chairman Steve DuCharme said. "He is not only a threat to the integrity of gaming, but to the economic well being of the industry."

Nominees are not contacted until they are formally nominated by the Gaming Control Board, and do not have a chance to contest the charges at the Control Board phase. If either wants to contest the allegation, they must respond within 30 days of being served with a nomination notice, and will be given a hearing at a Commission meeting.

In other actions, the board:

-- Referred back to staff the application of James Joseph Palmucci for licensure as general manager of Pecos Station Inc., which operates Pecos Station, 6115 S. Pecos Road, Las Vegas, and Desert Shores Texaco, 2021 N. Buffalo Drive, Las Vegas.

During the licensing investigation, allegations of criminal actions were made against Palmucci but were later recanted, Palmucci's attorney said. It was also noted that Palmucci's liquor and gaming work permits had been withdrawn by the city. Palmucci's attorney requested the application be sent back to staff while the licensing issue with the city was resolved.

-- Referred back to staff an application approving the sale of Carollo's Dining & Gaming, 2301 E. Sunset Road, Las Vegas.

The original business deal called for Arturo Cossini to sell his 50 percent stake in Carollo's to business partner Robert Jordan for $25,000. Instead of leaving these funds in escrow until the commission approved the sale, as regulations require, Cossini has already removed the $25,000.

The property has since gone into bankruptcy, and Jordan asked board members that the application be withdrawn. Board members referred the issue back to staff to consider disciplinary action.

-- Accepted a request to withdraw the licensing application of Paul Anthony San Filipo as president and owner of Gypsy III, 4605 S. Paradise Road, Las Vegas.

Filipo requested withdrawal of his application for a restricted gaming license after investigators raised concerns over untruthfulness on a car lease application he signed about 10 years ago. Investigators say Filipo intentionally overrepresented his income on the application.

Board members also said they believed Filipo had misrepresented his income on other loan applications, though his attorney denied those charges. DuCharme said he would vote against licensing Filipo if he continued with the application.

Filipo had been pursuing the application for five years. The application was dismissed with prejudice, meaning he will be unable to apply again for one year.

-- Accepted, on a split vote, the work permit application of a man convicted of first-degree murder in 1967.

Siller had strongly argued against the permit approval of Stanley Wilson of Las Vegas.

"I am sensitive to the fact that people need a second chance, but I believe the ultimate crime is taking another person's life," Siller said. "There are other things this person can do, but gaming is not one of them."

But member Dennis Neilander and DuCharme disagreed, noting that Wilson has had a clean record since 1992. Both felt that denying his application would be a punitive measure, rather than a measure to protect the industry.

"I could see a very big shift in this individual's outlook on life," Neilander said.