Casino backers charged with violating securities law

Thursday, Oct. 19, 2000 | 11:18 a.m.

THE ASSOCIATED PRESS

LITTLE ROCK, Ark. -- The head of a group wanting to legalize casino gambling in Arkansas said Thursday that a prosecutor acted unprofessionally in filing charges against two major backers less than three weeks before the general election.

Pulaski County Prosecutor Larry Jegley said Wednesday that affidavits were issued for the arrest of Jim Harris and Bob Buchholz, both of Dallas. They are accused of selling stocks without a license, selling unregistered stocks, and providing false information to the Securities Commission.

Bobby May, the president of Arkansas Casino Corp., said at a news conference that bringing the charges 20 days before the election was "unprofessional, ... immature (and) unethical."

Jegley said Harris and Buchholz convinced more than 300 people to invest at least $1,000 in their stock. The Securities Commission said Harris and Buchholz sold more than $300,000 in securities.

"They are just a bunch of skunks," Jegley said.

The proposed Amendment 5, to be voted on Nov. 7, would allow the Arkansas Casino Corp. to build casinos in six Arkansas counties. It would also authorize a state lottery and legalize charitable bingo. Its backers say proceeds would eliminate the sales tax on groceries and fund college scholarships for all Arkansas high school graduates.