Crain: Perlman said Edwards told him to vote for DeBartolo project

Natalie Gott

Wednesday, March 29, 2000 | 10:21 a.m.

BATON ROUGE, La. - Ex-Gov. Edwin Edwards told a member of the state's riverboat gaming board to vote to award a riverboat casino license to former San Francisco 49ers owner Edward J. DeBartolo Jr., the board's chairman testified.

State gambling board chairman Hillary Crain said Tuesday that he learned of Edwards' directions to board member Ralph Perlman only after the investigation into Edwards was made public and Perlman had testified before the federal grand jury in this case.

Crain said Perlman voluntarily shared his grand jury testimony with him.

"I asked him whether former Gov. Edwards asked him to vote for DeBartolo's project and he said he had," said Crain, who will be on the witness stand when court resumes today.

The testimony came just hours after DeBartolo testified that he paid Edwards $400,000 to ensure there would be no problems with his riverboat casino license application in 1997. Edwards was no longer governor at the time.

The state gaming board unanimously approved awarding the license to DeBartolo and their partners Hollywood Casino Corp. DeBartolo gave the license back after he refused to testify to the federal grand jury in the case.

Crain's testimony also came as prosecutors begin wrapping up their case against Edwards, his son, Stephen, state sen. Greg Tarver, gambling board member Ecotry Fuller and three others accused of manipulating the way the state awards riverboat casino licenses. Prosecutors say they will finish their case by Thursday.

Crain said Perlman tipped him early on that Edwards was interested in the state's final riverboat casino license. Perlman sought Crain's permission when Edwards invited Perlman to lunch in September 1996, Crain said.

"Ralph - I think he said to me - he's interested in the 15th license," Crain said.

Crain said he told Perlman that it was his business who he ate lunch with but, Crain said, he was watching the situation closely. Gambling board rules prohibited members from discussing riverboat license applications with anyone other than another board member.

Crain said his impression at the time was that Edwards could have been involved in any of three riverboat casino applications, one of them being DeBartolo's.

Perlman did not speak to Crain about Edwards again until May 1997, after he testified before the federal grand jury, Crain said.

Perlman said Edwards did not promise him anything in exchange for his vote and that he already had made up his mind to vote for DeBartolo's casino application when Edwards approached him, Crain said.

Perlman said Edwards did mention to him that he thought "the black members of the board were going to vote for his project," Crain said.

Fuller is one of two black members on the board and he made the motion to approve DeBartolo's project.

Crain said he did not know of any influence or attempted influence by Edwards or anyone else in connection with the 15th riverboat license until the investigation became public.

However, a day after the board approved DeBartolo's application, Crain said Jennifer Schaye, who formerly headed the attorney general's gambling division, told Crain that she received a call from Stephen Edwards, who claimed he represented DeBartolo for his application.

"We had no indication whatsoever that there was any involvement by former Gov. Edwin Edwards or Stephen Edwards and I thought if there was, we should pin it down," Crain said.

The gambling board sent a letter to Hollywood/DeBartolo executives asking them to disclose all payments or agreements to pay corporations and individuals.

Hollywood/DeBartolo did not disclose any payments or agreements to the Edwardses, Crain said.

Neither Fuller nor Perlman has attended a gambling board meeting since 1998 at Gov. Mike Foster's request because of the Edwards investigation.