Rogich’s license transferred with stipulation

Diana Sahagun

Thursday, Feb. 22, 2001 | 11:22 a.m.

Las Vegas will soon be home to a $7.5 million topless club just blocks away from the Strip, but the owners of the future Boardroom will face an unprecedented stipulation that leaves no room for second chances.

The Las Vegas City Council on Wednesday unanimously approved the transfer of a liquor license from political consultant Sig Rogich to brothers Ali and Hassan "George" Davari of Houston. The council added the condition that if there is a single arrest and conviction for sexually oriented activities such as prostitution, the city will shut down the club.

"I believe we are raising the bar for all sexually oriented businesses, and it sounds to me like the bar is pretty low right now," Las Vegas City Councilman Michael Mack said.

The vote ended a long-running saga during which the application was delayed three times and ethics complaints were lodged against all but two council members over their votes.

The city ethics board found last year that Councilman Michael McDonald, who abstained from the vote, violated ethics laws when he worked behind the scenes to block Rogich's tavern license. The state ethic's board ruled last week that he did not violate state law on that issue.

The city board also ruled last week that Mayor Oscar Goodman and council members Lynette Boggs McDonald, Michael Mack and Larry Brown did not violate ethics laws in their vote to grant Rogich a liquor license.

City staff members recommended denial of the Davaris' application, and Metro Police provided an hour's worth of testimony detailing criminal activity at the Davaris' Texas clubs.

The graphic report detailed Metro's discoveries at eight Texas clubs owned by the Davaris and included investigations from the Houston Police Department and the Texas Alcohol Beverage Commission.

According to the report, the brothers operate eight cabarets in Texas: Gigi's, Centerfolds, Gold Cup, Solid Platinum, Pleasures, Treasures, Splendors and Cover Girls.

During a two-year period, the commission found 55 violations in the eight clubs, resulting in $30,000 in fines.

The charges included unlawful sexual activities, high volumes of calls for police service, incomplete or missing records, selling alcohol to minors and others.

Two weeks ago the commission found two violations of selling alcohol to a minor at one of the clubs, according to Metro.

The Houston Police Department conducted its own sting operations at Centerfolds, Gold Cup and Silver Platinum from 1994 to 1996. During the investigations, 134 dancers were arrested and 24 were found guilty of charges relating to prostitution, indecent exposure and public lewdness, according to the report.

Houston police asked the commission to revoke the licenses of the three cabarets because they had an average of 51 arrests each. Fifteen other clubs in the area not owned by the brothers averaged 15.8 arrests per club, according to Texas police.

Ultimately, the licenses were not revoked, but the Davari brothers were required to pay $100,000 to cover the state's attorney fees. In addition, the Centerfolds and Gold Club were closed for 20 days each. The brothers paid another $100,000 in attorney fees relating to Solid Platinum instead of closing its doors.

Metro detectives traveled to Houston in October to meet with undercover Houston officers and visitd the three cabarets with the most serious allegations. At Centerfolds, several Metro undercover officers were rubbed and groped by dancers who simulated sex acts, according to the Metro report. Houston has an ordinance requiring dancers to keep a three-foot distance from clients. Touching is not allowed.

Some of Metro's comments were graphic, and one man took his daughter out of the Council Chambers during the hearing.

"This report is a pretty graphic, salacious, raw report," Goodman said, asking if the same types of activities were taking place in Las Vegas clubs. Metro officials replied that they were not.

According to the city, there were 54 arrests in Clark County and Las Vegas clubs from 1998 to 1999.

But attorney Mark Fiorentino, representing the brothers, said he had hired his own private investigator and found some of the same behaviors taking place locally.

The council directed Metro to look into the allegations.

Fiorentino pointed out that the brothers have been operating clubs for 15 years and have never been arrested or charged with a crime or had any licenses revoked.

"There is no question the allegations which were raised deserve Metro's and your concern," Fiorentino said. "But there are mitigating circumstances."

In the past four years, Fiorentino said, the numbers of citations have dropped and the brothers have fired unruly managers, implemented new training procedures and enforced Texas codes.

Fiorentino also had letters of support from doctors, accountants, corporate customers and neighbors of the clubs saying the brothers are honest.

The brothers said they would prove to the city that the problems in Houston would not occur in Las Vegas.

Las Vegas City Attorney Brad Jerbic said while it is almost impossible to deny a sexually oriented business license because exotic dancing is protected by the First Amendment, a liquor license is a privileged license and is not guaranteed.

"Liquor and sex multiply the negative effects of the (sexually oriented business) license," Jerbic said.

One resident, who faxed a letter to the Sun after watching the hearing, said McDonald and his friend Rick Rizzolo, who runs the Crazy Horse, a competing strip club, are probably "dancing on the tables of the Crazy Horse" after hearing the condition placed on the brothers.

"All Rizzolo has to do is send one paid operative into this new club to create the violation, stand for the arrest and conviction," wrote Susan Savala, who lives in McDonald's ward. "How easy, competition eliminated because the city condition was violated."

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