Man in Seminole probe tied to LV mobster

Monday, Feb. 24, 2003 | 10:49 a.m.

SUN STAFF AND WIRE REPORTS

A federal grand jury in Muskogee, Okla., is investigating a financier with a criminal record and a Las Vegas connection who helped build and operate the Seminole Nation's casinos, a published report says.

Ivy K. Ong denies he is a target of the panel, which also has subpoenaed employees of the tribal casino's operator, The Daily Oklahoman reported.

"When you get involved in controversial things, people will tear into you," said Ong, who estimates he made $18 million in three years working for the Seminoles.

"All my records are clean," he said. "I never touched the money. I furnished the machines ..."

Ong, 60, pleaded guilty to two federal misdemeanor counts in a 1995 California baby-formula scheme and was sentenced to four months on house arrest, The Oklahoman reported.

Ong also was described by an FBI informant during a 1999 murder trial as a customer of Herbie Blitzstein, a slain Las Vegas mob loan shark. Ong disputes the informant's testimony that he took a $100,000 loan on the street from Blitzstein.

The FBI witness testified in 1999 that the $100,000 initially was loaned to Blitzstein by Las Vegas gambling figure Ted Binion, who also was later murdered. Blitzstein then loaned the money to Ong, the witness said.

The Oklahoma grand jury also is investigating Qazi Alam, executive director of the Seminole Nation Development Authority, which runs the tribe's gaming operation.

Ong has parted ways with the Seminoles because of the grand jury investigation.

"Obviously, he is at least a focus of that," said attorney Gary Pitchlynn, who represented employees of the Seminole Nation Development Authority who testified last year.

"I really can't tell you what I talked about with my clients, but based on what I was hearing, and based on who was subpoenaed, it was pretty obvious they were looking at that relationship," Pitchlynn told the newspaper.

"I told the tribe that I thought that it was going to be painful and cost them an awful lot of time and aggravation just being in that relationship. I recommended that if there was some way they could sever that, it would be in their interests to do that."

Ong, who came to Oklahoma in August 1999, constructed two casinos outright, remodeled two others and supplied the gaming machines.

He also provided the upfront money for the expansion and has been involved in the tribe's blackjack games.

The Seminoles' gaming sites are the Rivermist Casino in Konawa, the Seminole Casino in Seminole, the Seminole Bingo & Casino southwest of Seminole and the Wewoka Gaming Center in Wewoka.

The Oklahoman reported that Pitchlynn revealed last year that the investigation covers allegations of "everything from theft to bribery to money laundering ... and just outright violations of state gaming laws."

Alam was one of the Seminole Nation Development Authority employees subpoenaed to go before the grand jury last year, but he didn't testify, his attorney Doug Dry said.

Dry, of Wilburton, also confirmed that Alam got a form letter from a federal prosecutor May 29 saying "you are a target."

Two other Oklahoma tribes have cut ties with Ong in part because of concerns of federal regulators.

"We were getting pressured," said Ponca Nation Chairman Bennett Arkeketa.

Ong also had contacts with the Iowa Tribe and the Kickapoo Tribe.

For the Ponca Nation, he remodeled the Blue Star Casino and supplied their machines for a year. He still supplies gaming machines to the Iowa Tribe.

Ong is trying to negotiate a deal with the Shinnecock Indian Nation to build a casino on tribal land in Long Island, N.Y.