Las Vegas Sun

March 28, 2024

Deal to split investment in Emerald Casino detailed

CHICAGO -- The chairman of a suburban bank refused to testify during a license revocation hearing Monday about a deal to secretly split an investment interest in the bankrupt Emerald Casino project.

State law prohibits hidden ownership of casinos.

Assistant Attorney General Paul Gaynor, who represents the Illinois Gaming Board, asked Parkway Bank & Trust Co. chairman Rocco Suspenzi about a signed contract in which Emerald investor Joseph Salamone agreed to divide his $375,000 share in the casino in part with Suspenzi.

The agreement was signed in September 1999 and lists others as part owners of Salamone's share, including his brother Vito, who has been identified by the Gaming Board as having connections with organized crime; Jeffrey Suspenzi, the banker's son; and Suspenzi Family Corp., whose officers are Rocco and Jeffrey Suspenzi.

The Gaming Board has been trying since January 2001 to revoke Emerald's license over concerns that top company officials lied to regulators and some investors allegedly had ties to organized crime.

Suspenzi, whose attorney sat next to him during the hearing, refused to answer questions for one hour and 20 minutes by invoking the fifth amendment of the United States Constitution.

However, Gaynor still asked Suspenzi questions related to the deal, including whose idea it was to split the share. He also questioned why checks that indicated they were for a "partnership" and signed by Jeffrey and Rocco Suspenzi were made out to Vito Salamone instead of Joseph Salamone, who was the investor.

"Joe was the 'front,' that is, he was the named shareholder, correct?" Gaynor asked Rocco Suspenzi, who did not answer.

The Gaming Board learned of the deal to split the investment interest through a federal subpoena it received in 2003 that asked the board for documents it had related to the deal. The subpoena included the signed contract in which Salamone agreed to divide his share.

Gaynor also asked Suspenzi, who did not answer, about loans and campaign contributions Harwood Heights-based Parkway Bank made to various political committees controlled by Rosemont Mayor Donald Stephens or his relatives.

Emerald attorney Robert Clifford requested a mistrial after Suspenzi came off the witness stand, saying Suspenzi's decision not to testify and Gaynor's questions created "a negative inference."

"These questions are highly inflammatory, very prejudicial," Clifford said. "This is so highly inflammatory that it is impossible for Emerald casino and its interests to get a fair trial."

Abner Mikva, a former U.S. Court of Appeals chief judge and congressman who is the judge in the Emerald license revocation hearing, denied Clifford's request. However, he said he found Suspenzi's nontestimony to be "seriously damaging."

After testimony ended for the day, Clifford said Emerald did not know about the secret deal to split the investment.

"Emerald is as innocent about that as anyone else is," Clifford said. "They didn't know, couldn't have known."

The casino license revocation hearing began in 2002, but was put on hold two weeks later after Emerald was forced into bankruptcy and while the state worked out a settlement. The hearing resumed May 25.

If the Gaming Board succeeds in revoking the Emerald license, the state could hold an auction to reissue it to another casino company.

Last year, the Gaming Board chose Isle of Capri Casino Inc. as the winning bidder for the license now held by Emerald. But Attorney General Lisa Madigan halted the deal and announced plans to resume the revocation hearing after saying she had concerns about possible mob ties in Rosemont. Like Emerald, Isle of Capri wanted to build in that Chicago suburb.

archive