Sunday, Feb. 19, 2006 | 12:34 p.m.
CARSON CITY - An owner of a string of small casinos in Nevada has agreed to pay a $200,000 fine for lying to state gaming regulators about a domestic dispute last year.
Richard C. Estey and the state Gaming Control Board signed a stipulation Thursday in which he admits to a two-count complaint filed against him by Deputy Attorney General Darlene Caruso.
Estey has 21 casinos scattered through Las Vegas, two in Carson City and at least one in Reno.
Last May 28, the board received an application to license Estey's company Nevada Restaurant Services, Inc., as a slot route operator and manufacturer/distributor. Then on Aug. 8, Estey submitted an application to acquire 20 percent of the corporation from his "soon-to-be ex wife Katherine Estey."
Board investigators started an investigation and discovered that Katherine Estey on Aug. 29 filed a complaint with Metro Police involving a domestic dispute with Richard Estey. She also sought a temporary protective order against him.
The investigators said they tried to contact Estey but he was "uncooperative in responding" and he failed to notify the board of the Aug. 29 dispute.
The regulations require applicants for gaming licenses to make full disclosure of these incidents. And a violation constitutes an unsuitable method of operation.
Investigators on Nov. 4 interviewed Estey about the incident. The state's complaint said Estey disputed his estranged wife's version of the incident and denied allegations made by her.
Another hearing was held in January this year with Estey in which he acknowledged the dispute and admitted to lying in the November interview.
The complaint by the gaming board said "Specifically, Estey acknowledged that he was untruthful with the board's staff and does not dispute Katherine's version of the incident at issue."
Estey could not be reached for comment.
But in the stipulation, he admits to the two counts in the complaint.
In addition to the $200,000 fine, Estey must attend a business ethics course approved by the board within 12 months. Failure to comply will result in additional disciplinary action.
The stipulation will be presented to the Gaming Commission for approval at its Feb. 23 meeting in Carson City.
Cy Ryan can be reached at (775) 687-5032 or at [email protected].
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