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November 10, 2009

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Vegas resort settles with subcontractor

Friday, June 15, 2001 | 10:43 a.m.

The bankrupt Regent Las Vegas, which accused subcontractor Performance Contracting Inc. and its former employee of conspiring with J.A. Jones Construction Co. in an alleged scheme of kickbacks to defraud the hotel-casino, said it has reached a settlement with Performance.

Terms of the settlement, which is subject to bankruptcy court approval, weren't disclosed because of a confidentiality provision.

The Regent, which filed for Chapter 11 bankruptcy protection on Nov. 21, alleged Performance Contracting, Anaheim, Calif., and a former manager, Victor DuBois, and Eric Brehm, a J.A. Jones' project manager, conspired to fabricate change orders to bill the casino for work that was allegedly never performed and to "reimburse" Performance for "extraordinary entertainment and other expenses" incurred to entertain the two men.

But Performance disputed such charges, claiming to be "the lone victim" of DuBois after he was accused of embezzling Performance's funds. Performance also denied liability to the Resort and contended it was entitled to be paid additional sums for work done at the resort.

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