Gretna mayor details efforts to gain riverboat approval

Natalie Gott

Wednesday, Feb. 9, 2000 | 4:08 a.m.

BATON ROUGE, La. - An FBI agent and the mayor of Gretna helped prosecutors detail the political power Edwin Edwards and his allies exerted over the approval of riverboat casinos in Louisiana when Edwards was governor.

Edwards, his son Stephen, state Sen. Greg Tarver and four others are on trial in a federal racketeering case, accused of manipulating the licensing process during and after Edwards' last term as governor, which ended in January 1996.

FBI agent Dave Hudson read the jury a report of an interview he did with Edwards in April 1997. Edwards discussed Tarver's efforts to win approval of a license for the Horseshoe casino in Bossier City from the now defunct Riverboat Gaming Commission - a commission appointed by Edwards.

Edwards also talked candidly about his other political allies' ability to get commission backing of other riverboat casino projects. He called the Boomtown in Harvey "Alario's boat," referring to state Rep. John Alario, speaker of the House when Edwards was governor.

Horseshoe was "Tarver's boat," in Edwards' words, and an unidentified casino project in Chalmette was "Nunez's boat," according to Hudson's report.

Sammy Nunez was president of the Senate during Edwards' last term and had strongly supported a riverboat project planned by Circus Circus Inc., despite criticism from some industry analysts that the project was too big and needed to be scaled back or moved. Circus Circus eventually abandoned the project after Nunez was defeated for re-election in 1995.

Neither Nunez nor Alario are charged in the case; Tarver, a co-defendant with Edwards, is not charged in connection with Horseshoe.

However, the Horseshoe has been in the news of late not just because of the indicted state senator's support of it, but also because it is operated by controversial Las Vegas gambling figure Jack Binion.

A report issued recently by Illinois gambling regulators questioned the validity of Binion's local partnerships in Bossier City and his use of shell operations to give the appearance he is doing business with minority- or female-owned vendors as promised. Binion's attorney, Anton Valukas, said the Illinois staff report is full of inaccuracies and misinterpretations.

Two other people testified Wednesday about their failed efforts to win a riverboat for the New Orleans suburb of Gretna: investor Bernie Klein and Gretna Mayor Ronnie Harris.

Harris told the jury that his city had assembled an impressive case for hosting a riverboat casino in 1993.

A partnership headed by Klein was ready to own and operate the boat. A plan with strong minority involvement was ready and there was plenty of community support.

Harris said he pitched the project to Edwards three times early in the former governor's fourth term but got little help. Two days before the June 18, 1993, meeting of the Edwards-appointed Riverboat Gaming Commission, Harris said, he received a telephone call from Edwards, who told him the proposed Gretna Belle project would not be approved at the meeting.

"The governor brushed me off," Harris said. "He said 'Your man is out."'

None of Wednesday's testimony contained blockbuster allegations of wrongdoing such as those that came from two previous witnesses who bolstered prosecution claims that Edwards and others took payoffs in return for approval of a casino license in 1994.

Harris simply detailed his efforts to help Gretna gain a riverboat casino.

At the June 1993 meeting, the commission was to grant preliminary approval of seven riverboat casino projects, putting those seven in line to be licensed by state police. Although told ahead of time that the Gretna Belle would lose out in the meeting, Harris said, he attended the meeting anyway. But seven other projects were approved, apparently from a list referred to by commission member Sam Gilliam.

Daniel Small, Edwards' defense attorney later seized upon the fact that 28 applicants, not just Gretna's, were turned away that day.

Harris had already testified that he had sought help from then-House speaker John Alario for the Gretna project, although Alario was supporting another boat. Small noted that Harris had also lobbied Lt. Gov. Melinda Schwegmann, legislators and non-elected officials for help.

"There is nothing wrong with going to the governor and getting his help is there?" Small asked. Harris agreed.