No action taken on Treasures’ problems

Sito Negron

Thursday, Sept. 2, 2004 | 8:36 a.m.

As expected, the Las Vegas City Council on Wednesday again postponed making a decision on whether to grant a permanent liquor license to the $30 million strip club Treausures.

The decision, which had first been slated for March 17, is now set for Sept. 15.

That's the day before the temporary license expires, and since council already has granted the maximum two temporary six-month licenses, it's all or nothing for the club.

"We've had a gun put to our heads," Councilman Larry Brown said of the time crunch facing the council when it's slated to consider the license.

Council members are assessing whether the club has held to its agreement with the city when Treasures first received a license, where it stands in relation to overall vice issues in the adult industry, and most recently, how a Houston audit of the Davari brothers, who own Treasures, might tie into the Las Vegas business.

The issue stems from the initial licensing hearing, at which council members, appearing aghast over reports of sex for money and other legal violations at the Davari's Houston clubs, asked for an assurance that the Las Vegas clubs would be a model of erotic propriety.

Mark Fiorentino, representing Treasures' owners, told the City Council that the club would not contest the issue if any of its employees were convicted of breaking the law and the city sought to revoke the liquor license.

Three Treasures dancers were charged with soliciting prostitution. One was convicted, and another is awaiting a decision that is expected next week.

However, Fiorentino has told the council that he was foolish in making the promise about giving up the license and has tried to reframe the question to address whether Treasures has held to a high standard in how it addresses rulebreaking by its employees.

The comparison with other clubs opened the discussion to address the sex industry as a whole.

"It's a bigger issue here," Brown said.

Adding to the mash of issues being thrown into play is a money-laundering investigation in Houston. In early June, Texas filed a civil suit in Houston against Ali and Hassan Davari, owners of Treasures in Las Vegas and six nightclubs in Houston, alleging irregular banking practices. Also, federal and state authorities seized more than $2.1 million from the men's bank accounts.

The city has asked its auditor to look at transactions involving the Las Vegas club. That report is expected next week.

Brown questioned whether there was enough time for the auditor to provide a meaningful report.

"I would be very disappointed if two weeks from today we get a report that is incomplete," he said.

City Auditor Radford Snelding told the council members that he thought he'd be able to deliver the report on time.

The vote was 5-0 to postpone the item. Mayor Oscar Goodman and Councilman Michael Mack abstained; Mack is a consultant for Treasures, and Goodman's son, Ross Goodman, is a lawyer for the club.