Regulators halt work on AC casino resort

John Curran

Thursday, Sept. 26, 2002 | 9:41 a.m.

ATLANTIC CITY -- New Jersey casino regulators ordered a halt to a subcontractor's demolition work on a Resorts Atlantic City expansion Wednesday while "significant allegations" of mob ties are investigated.

Maztec Environmental Inc. of East Hanover had begun preparing this week to knock down the 12-story North Tower of the casino hotel to make room for a new 28-story tower.

But the state ordered the company Wednesday to stop work pending a hearing into the mob allegations raised in an Aug. 20 report by the state Division of Gaming Enforcement.

In it, the agency said company President Grace Mazzocchi and operations manager Charles DiMaria have had an ongoing contact with reputed DeCavalcante family "capo" Pino Schifilliti that casts a shadow over their fitness to be licensed by New Jersey casino regulators.

"The report raises significant allegations about Maztec's involvement with organized crime through at least two of its qualifiers," Michael Fedorko, acting commission chairman, said.

Maztec, which did $190,000 worth of business with Atlantic City casino hotels in the first part of this year, hired DiMaria at the suggestion of Schifilliti in 1994, according to the agency report.

DiMaria and Schiffiliti had worked together at Elizabeth-based Laborers Local 1030 but were forced out in 1997 after a complaint by the Laborers International Union of North America.

DiMaria resigned as president and agreed to a lifetime ban on membership in any Laborers union local; Schifilliti agreed to resign as business agent.

Schifilliti, who is now in jail, was indicted in 2000 along with 19 other people on charges of murder, conspiracy, racketeering, loansharking and construction industry extortion.

DiMaria and Mazzocchi's continued association with him cast doubts on their character and integrity, the agency said.

Mazzocchi said Wednesday she had requested a hearing on the report weeks ago and was given no notice that the Casino Control Commission planned to act against her company so quickly.

"I wasn't on the agenda, I wasn't (publicly) noticed, I had no representation. I don't know how this all became a public event," she said.

No date has been set for a hearing on the report.

Nicholas Amato, senior vice president and general counsel of Resorts, had no comment on the Maztec ruling.

"The casino service industry license has nothing to do with us," he said.