Station Casinos pays $475,000 fine in campaign flier controversy

Thursday, Oct. 26, 2000 | 5:37 a.m.

CARSON CITY - Station Casinos Inc. paid a $475,000 fine Thursday to settle a Nevada Gaming Control Board complaint over an anonymous campaign mailer sent out by a former Station executive.

Station representatives handed over a check to clear up a six-count complaint filed by the board, agreed to reimburse the board $23,588 for its investigative costs, and promised more in-house oversight of its political activity.

The Control Board's parent Nevada Gaming Commission, which accepted the settlement, was told that other top Station Casinos officials didn't know what former executive Mark Brown was up to, and the corporation wasn't admitting to allegations in the complaint.

But Deputy Attorney General Jeff Rodefer said Station officials did concede that casino regulators could prove that wrongdoing occurred.

Station Casinos could have faced up to $600,000 in fines and sanctions on its license because of the mailer by Brown, who was executive vice president of government affairs.

The flier, mocking Clark County Commissioner Lance Malone's trustworthiness, was masterminded by Brown and political consultant Tom Skancke and mailed last March to 39,000 residents in Malone's northwest Las Vegas district.

Malone blamed the flier, in response to his support of a neighborhood casino project that Station Casinos opposed, for his crushing defeat in the September GOP primary.

The mailer made news because it didn't identify who paid for and sent it, as Nevada law requires. The GCB alleged Brown lied to his bosses about his role in producing the flier and lied to the FBI, and also tried to politically blackmail Malone.

Brown announced Oct. 13 that he was leaving Station for personal and family reasons, and wasn't fired. His departure was described Thursday by Station legal counsel Scott Neilson as "a mutual decision."

Gaming Commission member Augie Gurrola said prior to the vote to accept the settlement that the fine seemed excessive. But board member Art Marshall said it's justified, adding, "We have to watch out for corporate arrogance."

Station Casinos is a leader in the neighborhood casino niche. It owns and operates Boulder, Sunset, Texas and Palace stations, Wild Wild West and a half interest Henderson's Barley's brewery and casino. The company also has announced plans to purchase Santa Fe and Fiesta hotel-casinos.