Casino regulators vote down Reno casino licensing plan

Brendan Riley

Wednesday, Dec. 20, 2000 | 11:31 a.m.

CARSON CITY - A Southern California businessman with ties to reputed mobsters involved in large-scale drug deals and prostitution lost Wednesday in a bid for a Nevada casino license.

Judah Hertz had tried to withdraw an outdated application for licensing at the Flamingo Hilton, Sands Regent and Comstock hotel-casinos in Reno. But state regulators rejected the withdrawal request and voted unanimously to deny him.

Hertz "obviously is unsuitable for licensure with the state of Nevada and has no business here," state Gaming Commission Chairman Brian Sandoval said as the commission voted 4-0 against Hertz' application.

Sandoval noted Hertz failed to tell state investigators about associations with numerous people with criminal backgrounds, or about questionable business matters and 86 lawsuits involving him or his family's companies.

"We could go on and on and on," Sandoval said, referring to information in a denial recommendation from the state Gaming Control Board, the commission's investigative arm.

The Control Board said Hertz, who didn't show up for either a GCB hearing or the commission meeting, had dealings with reputed organized crime figures including Israeli immigrant and accused international drug smuggler Jacob Orgad.

The board said Orgad allegedly distributed cocaine for the Gambino and Escobar crime families, supplied cocaine and recruited women for notorious Hollywood madam Heidi Fleiss, and has been linked to distribution of MDMA, the illegal "ecstasy" drug.

Control Board documents also state Hertz got some of the money for his Reno ventures from an uncle of Hai Waknine and Assaf Waknine, alleged enforcers for Orgad and members of the Bachsihan crime organization involved in ecstasy dealing.

The Hertz Investment Group and an affiliate, Sapphire Gaming LLC, began acquiring the three Reno casinos in 1999, starting with a $5 million deal for the Comstock. Also proposed was a $20 million deal for the Flamingo Hilton, which fizzled last summer, and a bid for a half-interest in the Sands Regency.

Hertz, who had sought licensing approval for himself and several families, got the only denial. The other applications were referred back to staff. While they could come up again, it's unlikely given the concern about Hertz.