Wynn questioned about tape-recording incident

Thursday, June 8, 2000 | 10:34 a.m.

CARSON CITY -- The FBI and the Nevada Gaming Control Board are examining whether an investigator for casino magnate Steve Wynn violated federal law in taping a conversation to gain evidence in suits pitting Wynn against New Jersey resort owner Donald Trump.

Under questioning by the gaming control board, Wynn said he never knew anything about an illegal recording by investigator Louis Curt Rodriquez.

Wynn and his lawyer Frank Schreck of Las Vegas were grilled for about 30 minutes by control board member Bobby Siller about the incident that allegedly took place in New Jersey.

And the gaming board also questioned Marc Dennis Schorr, who is to be general manager of the Desert Inn when Wynn acquires it this month. Schorr was asked about his shaking hands and talking for about five minutes with John Conti, a member of the Black Book. Conti is barred from Nevada casinos and gaming executives are not to associate with people listed in the publication.

Schorr said he didn't know Conti when he shook his hand before entering the funeral of Las Vegas poker player Stewart Unger at Palm Mortuary. He said he thought he recognized Conti as a player at one of the hotel-casinos. He said the two talked about Unger.

Despite the questioning, the board recommended approval of the license for Wynn to buy the Desert Inn for $270 million and Schorr to manage it. The state Gaming Commission will take final action on the application June 22 in Carson City.

Wynn told the board that Rodriquez was hired away from the Trump forces after the suits began. Rodriquez was to gather information to help the Wynn forces.

Siller said the Newark, N.J., office of the FBI was investigating whether Rodriquez left a tape recording going of a meeting while he was out of the room. That is a potential violation of the federal law, said Siller, a former FBI agent.

Siller expressed concern that nobody in the Wynn camp ever brought the potential violation to the attention of the U.S. Attorney or another law enforcement agency. Siller stressed he was not blaming Wynn for the problem but said the attorneys and investigators hired by Wynn's Mirage company dropped the ball.

Siller said Wynn "had every right to protect his interest. He did what was responsible. My issue is not with Mr. Wynn." He zeroed in on the attorneys and investigators who were supposed to supervise Rodriquez. He said they "let him (Wynn) down."

Schreck said the lawyers and investigators were mostly former federal officials knowledgeable about the laws of illegal interception of conversations. He said they did not think Rodriquez's actions were unlawful.

Schreck said Rodriquez was recording a conversation in New Jersey, and he left the room to go to the bathroom. The individual who was in the room made a telephone call but no one answered, said Schreck. There was no violation, he said. But he admitted the lawyers and investigators told Rodriquez not to do it again.

Siller and Board Chairman Steve DuCharme both said state agents would investigate if there was a violation of the federal law. And if so, the board would take disciplinary action.

Wynn said he settled his suit with Trump, but he added some of the actions by his opponents were "hair raising."

Wynn and Trump have battled each other on several issues, including Wynn's planned entry of Mirage resorts into the Atlantic City market.