Federal subpoena issued

Wednesday, March 27, 2002 | 11:55 a.m.

Federal investigators have served a subpoena on the Illinois Gaming Board, demanding records relating to MGM MIRAGE's failed bid for a lucrative casino license in the Chicago suburb of Rosemont, the Chicago Tribune reported today.

The March 12 subpoena seeks all records relating to contacts between gaming board personnel, Las Vegas-based MGM MIRAGE and Emerald Casino, which was denied in its attempt to transfer a casino license from a defunct Illinois casino to the Rosemont site in part because of allegations of mob ties to Emerald.

MGM MIRAGE and Emerald reached an agreement with Board Administrator Philip Parenti for MGM MIRAGE to acquire Emerald for $615 million, with $160 million going to the state of Illinois. On Friday, the board rejected this deal.

Alan Feldman, spokesman for MGM MIRAGE, said he was unaware if the company had also been subpoenaed.

"I'm sure they (federal investigators) will be cooperated with fully," Feldman said.

The subpoena is the second in the Rosemont investigation this year. In January, the board was subpoenaed by federal agents for records on the Emerald Casino, specifically those on the land where the casino was to have been built.