Palace Station slot ambassador arrested, sued

Sun Staff

Wednesday, April 16, 2003 | 11:32 a.m.

Palace Station hotel-casino sued Scott Redd, its former slot service ambassador, in Clark County District Court, alleging he embezzled $263,000 by taking coins meant for refilling slot machines and converting them into cash for his own use.

Scott Redd, a distant relative of gaming equipment pioneer and casino owner Si Redd, was terminated after an investigation and audit conducted by Palace Station and the Nevada Gaming Control Board revealed Redd had allegedly processed up to 100 improper fill transactions each month between May 2002 and January 2003, the lawsuit said.

A fill transaction, which refers to the process of refilling slot machines with coins, requires a fill slip or a receipt bearing the signature of the slot service ambassador and two witnesses to be submitted to Palace Station's accounting department.

During the Gaming Board's investigation in February, the suit said Redd admitted to the scam and stealing the money and returned $27,000 of the stolen funds to Palace Station.

Palace Station, which said it believes the remaining $236,000 in stolen funds are commingled with money in two of Redd's accounts with Washington Mutual Savings Bank and Ensign Federal Credit Union, wants a constructive trust to be placed on the accounts' funds. Keith Copher, chief of the Gaming Board's enforcement division, said Redd was arrested on theft and forgery charges by the board on Feb. 10.

"He was investigated by the board and his case has been presented to the district attorney's office and we're waiting to see if criminal charges will be filed against him," Copher said.

Redd could not be reached for comment.