Gaming probe subject gets city license

Jace Radke

Thursday, Oct. 3, 2002 | 11:23 a.m.

Previous state investigations of alleged mob connections didn't keep a former Strip hotel executive from getting a city liquor license.

Albert J. Rapuano, a former Riviera president and chief operating officer, who has been investigated by the state Gaming Control Board, was given a liquor license Wednesday by the Las Vegas City Council in order to work as a manager of Crazy Horse Too, the strip club on Industrial Road.

Concern about Rapuano's past prompted Mayor Oscar Goodman to pull his application for a "key employee" license from the routine consent agenda and place it for discussion.

"It appears that Mr. Rapuano may have had some problems with gaming authorities, but the application before us today is a liquor license and has nothing to do with gaming," Goodman said.

Rapuano resigned from the Riviera in June 1993 during a Control Board investigation of the company's bankruptcy reorganization.

"The relationship between Mr. Rapuano and this board is no secret," said Randall Sayre, the Control Board's chief of investigation. "It's no secret that we have concerns with some of the associations that he has, and until we get to the bottom of those concerns, we're going to retain the applications in the case that he he again attempts to enter gaming."

In 1995 Rapuano was hired as the general manager at a Mesquite casino owned by Players International Inc. and Merv Griffin, only to be fired two weeks later. Players International representatives said at the time that they learned details of Rapuano's past including allegations of a possible friendship with a man police said was connected to organized crime.

Sayre said there have been at least four investigations into Rapuano since 1985 that have been shelved, but not closed.

Jim DiFiore, the city's director of business licensing, said Metro Police conducted background checks on all applicants for liquor licenses, and that the city then reviews the reports.

"There were no issues brought to our attention that were a concern with (Rapuano's) application," DiFiore said.

DiFiore did say that concerns by the Control Board could be a red flag in a city licensing process, but were not in Rapuano's case.

Metro's special investigations unit does all the background checks for licensing in the city and Clark County. Lt. Vincent Cannito, a Metro spokesman, said investigators take each license on a case-by-case basis, and that while a felony would be an obvious concern, anything that falls under moral turpitude can be brought into question.

Cannito and city spokeswoman Elaine Sanchez said Rapuano's background report is confidential.

After Goodman questioned DiFiorie in front of the council to show that the city had in fact consulted with Metro about Rapuano's application, the council unanimously voted to approve the license.

McDonald said he didn't vote on the item because of his longtime friendship with Rizzolo.

"The city attorney advised me that I could have voted on it, but since we don't have an ethics board to ask right now, I'll probably have to check with the state," McDonald said.