Attorney: Cecola no threat to gaming

Tuesday, Oct. 24, 2000 | 10:23 a.m.

CARSON CITY -- Sam Cecola, founder of the Club Paradise in Las Vegas, isn't a threat to Nevada's gaming industry and should not be included in the state's Black Book, his lawyer says.

Cecola's attorney, Dominic Gentile, said Cecola was convicted of a tax violation that is "totally nongaming related."

"That certainly doesn't make him a danger to the gaming industry or the public perception of corruption in the industry," Gentile said.

He has never applied for a (gaming) license or a work card," Gentile said. The attorney will fight a recommendation by the state Gaming Control Board that Cecola be included on the so-called "Black List," the list of persons banned from Nevada casinos.

The gaming board in September nominated Cecola for the book, citing his conviction of federal tax violations and his "notorious and unsavory reputation." Cecola filed a notice last week that he will contest the state's action.

In 1997 Cecola was sentenced to 46 months in a federal prison on his convictions of one count of defrauding the Internal Revenue Service and five counts of filing false income tax returns. The government alleged he and his associates skimmed in excess of $2.5 million from adult bookstores in Illinois and Wisconsin over an 11-year period.

To preserve his liquor license at the topless club in Las Vegas, he agreed to transfer his majority ownership to his wife, Geralyn, and to never enter the business or be involved in its operation.

But Metro Police said telephone records revealed Cecola talked with his wife about the club operations. Despite the objections of Metro, the Clark County Commission voted in February last year to award the wife a license.

Cecola was released from prison in May and lives in Barrington, Ill.

Gentile argued that status as a convicted felon should not alone be enough for inclusion in the Black Book.

"There are tens of thousands of convicted felons living in Las Vegas and convicted felons who have gaming work cards," he said.

The Las Vegas attorney said he will be able to show that Cecola does not have a "reputation."

"Nobody ever heard of this guy," Gentile said. "Certainly nobody in the gaming industry." He suggested the Control Board is trying to create a reputation for Cecola.

Cecola is included on the Chicago Crime Commission list of unsavory individuals. Gentile said Cecola is not referred to as a member of organized crime but as a businessman associated with organized crime. He suggests Cecola, who was in the adult bookstore business, had to pay off organized crime figures to keep his business running.

In addition, Gentile said, the Chicago Crime Commission is not a government body. The Nevada regulations, he said, allow state gaming regulators to rely on government findings. But in this case the Chicago group is not an official government agency.

If the Gaming Commission agrees to the nomination, Cecola would be the 36th person added to the Black Book. Gentile said 64 percent of those are Italian surnames. "I believe it's a factor and we can demonstrate it."

This move by the state, Gentile said, was instituted by Metro Police. Metro, he said, was unhappy because Cecola got a liquor license. There were money-laundering allegations directed toward Club Paradise but Cecola was never prosecuted.

"We're dealing with frustration by Metro because this man obtained a license, avoided prosecution (on the money laundering allegations) and was permitted to transfer his license to his wife," Gentile said.

No hearing date has been set for the Gaming Commission to hear the case.