Friday, June 18, 2004 | 10:47 a.m.
Combined company not changing name
One thing about MGM MIRAGE won't be changing in its pending merger with fellow casino-resort giant Mandalay Resort Group. The combined entity will still be known as MGM MIRAGE and won't adopt the Mandalay brand as part of its corporate name, MGM MIRAGE spokesman Alan Feldman said.
"MGM MIRAGE is the name of the publicly traded holding company over all of our properties and we have no plans to change the name at this time," Feldman said. "MGM MIRAGE now will own several major brands, some of which are not in the name, such as Bellagio and Mandalay Bay."
"It's an older and more established name," he added. "There's been a lot of effort put into that brand."
A memo notifying employees of the decision is expected to be distributed to all MGM MIRAGE workers nationwide starting today.
The move follows a similar decision by Harrah's Entertainment Inc. to keep its corporate name following the acquisition of riverboat casino company Horseshoe Gaming Holding Corp.
Company sues insurer
Mikohn Gaming Corp. of Las Vegas has filed suit in Clark County District Court against its insurance carrier, Gulf Insurance Co., for failing to cover claims incurred after a former executive sued the company.
Mikohn sued the company's former General Counsel and Secretary Charles McCrea in March 2003, claiming McCrea defaulted on a $113,740 loan plus interest for 20,000 shares of stock. McCrea allegedly participated in a board-approved stock purchase plan allowing executives to purchase up to 20,000 shares of restricted stock.
McCrea countersued in April 2003, claiming he was fired without cause and the company refused to honor an indemnification agreement by failing to defend him against allegations brought by the Michigan Gaming Control Board. Michigan regulators were investigating Mikohn's pending application to renew its gaming license in that state. A court ordered that the case be taken to arbitration and McCrea's attorneys have appealed to the state Supreme Court.
McCrea sued Mikohn based on several claims including breach of contract, defamation and intentional infliction of emotional distress. His suit claimed McCrea was terminated without a chance to defend himself and that Mikohn's own investigation of McCrea had determined that the executive had done nothing "illegal, unethical or improper." Mikohn's latest suit said Gulf Insurance mismanaged the gaming company's claim.
Attorneys for Mikohn declined to comment and attorneys for Gulf could not be reached for comment.
Panel to issue subpoenas
WASHINGTON -- The Senate Committee on Indian Affairs decided Wednesday to intensify its election-year probe into what happened to more than $45 million paid over three years to lobbying and public relations firms by four casino-owning Indian tribes.
"Influence-buying" and "getting involved in rigging tribal elections" are two possibilities, said the committee's chairman, Sen. Ben Nighthorse Campbell, R-Colo., who was authorized to issue up to 15 subpoenas.
Sen. Harry Reid, D-Nev., said the allegations include mail fraud and potential violations of the RICO anti-racketeering statute. "A number of senators have received information that is very provocative, and may not be true," he said.
Reid said he thought some tribal records would be subpoenaed. But Campbell, a member of the Northern Cheyenne tribe who is sensitive to the issue of tribal sovereignty, said, "I am not a supporter of subpoenaing tribes."
The tribes that paid the fees are the Mississippi Choctaw, the Louisiana Coushatta, the Agua Caliente in California and the Saginaw Chippewa in Michigan.
"Some tribes were very unhappy with their arrangements. Others are saying that they got the services they paid for, and are satisfied," Campbell said.
The tribes were clients of public relations expert Michael Scanlon, former communications director for House Majority Leader Tom DeLay, R-Texas, and Jack Abramoff, a prominent Republican fund-raiser and lobbyist who resigned abruptly from the Greenberg Traurig law and lobbying firm after news of the dealings with the tribes emerged.
Abramoff's attorney, Abbe Lowell, said, "Because the committee apparently decided to act in closed session, we don't know what it did or what, if any, subpoenas have been issued. Once we have more information, we would hope to be able to respond to any properly issued, authorized and defined request."
Efforts to reach Scanlon and his attorney were unsuccessful. Scanlon has defended his fees as "reasonable."
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