More litigation in Arizona casino stock fight

Thursday, Aug. 17, 2000 | 9:29 a.m.

Last year, the Arkansas Securities Department ordered the Arkansas Casino Corp. to stop selling stock after the two could not agree on whether the corporation was required to register with the state and how a buy-back plan should be presented to shareholders.

Since then, the casino group, known as Natural State Resorts Inc., has sued the department.

The Securities Department said the company publicized false information about itself, didn't reveal that some company officials had been involved in prior Securities Department enforcement action and failed to register to sell the securities in Arkansas or secure exemption from registration.

The casino group's lawsuit asked that the Securities Department be ordered to clear the company's record and approve its stock for sale in Arkansas.

In the latest action in Pulaski County Chancery Court, the state claims the casino group has continued to sell securities and has failed to follow earlier court orders.

"We believe they've willfully and knowingly violated the law," said Assistant Securities Commissioner Theodore Holder.

Casino group attorney Robert Buchholz accused the department of doing the bidding of Gov. Mike Huckabee, who opposes casino gambling.

Huckabee spokesman Jim Harris said the department is doing its job and accused the group of trying to draw attention away from issues in the court action.