courts:

Grand jury indicts high roller in $14.7M casino debt case

Watanabe charges expected to be filed in court this afternoon

Wednesday, April 29, 2009 | 10:49 a.m.

Terrance Watanabe in court (Feb. 2008)

Terrance K. Watanabe, 52, of Omaha, Neb., talks with a woman (identified as a sister) and attorneys before his appearance in court at the Regional Justice Center in Las Vegas on Wednesday. Watanabe, in a negotiated deal, posted $1.5 million and turned himself in for processing. According to prosecutors, the high-rolling philanthropist owes $14.7 million to Caesars Palace and the Rio, which are owned by Harrah's Entertainment Inc.

High roller posts $1.5 million bail to avoid jail stay (2-18-2009)
Philanthropist allegedly owes $14.7 million to Rio, Caesars (2-4-2009)
Feds press probe of ex-Fry’s executive (2-2-2009)
Casino profile details luxurious lifestyle of former Fry’s executive (1-14-2009)
Feds looking into high roller’s debt payments (12-31-2008)

A county grand jury has indicted Nebraska philanthropist Terrance K. Watanabe on felony charges of theft and passing bad checks stemming from $14.7 million in gambling debts.

Chief Deputy Deputy District Attorney Bernie Zadrowski confirmed the indictment was returned Tuesday and was expected to be filed in court this afternoon.

The charges are the same as those contained in a February criminal complaint against the 52-year-old Watanabe, a prolific gambler on the Strip in recent years.

Prosecutors have alleged that Watanabe owes Caesars Palace $12 million and the Rio another $2.7 million.

Zadrowski, who runs the district attorney's bad check unit, said he chose to seek the indictment to avoid a lengthy preliminary hearing in Las Vegas Justice Court.

More than a dozen witnesses, including casino hosts, cage managers and pit clerks, have testified before the grand jury in the past two weeks, Zadrowski said.

Those witnesses would have faced cross-examination at the preliminary hearing from Watanbe's defense attorneys, David Chesnoff and Richard Schonfeld.

Instead, the case moves to the trial phase in District Court, where Watanabe will get a chance to respond to the charges.

Chesnoff and Schonfeld contend Watanabe has been an "honorable customer" at several casinos here.

His wealth comes from the the Oriental Trading Co., a wholesale novelty importer based in Nebraska that was founded by his father.

Watanabe, who ran the company from 1977 until 2000, is free on $1.5 million bail posted in February.

His gambling debt case is the largest ever brought by the bad check unit.

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By davidwayneosedach

April 29, 2009

11:29 a.m.

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$14.7 million - ouch! How much jail time would that get you?
By rpm6600

April 29, 2009

11:42 a.m.

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At what $$$$ point did they realize that the checks were bad - idiots?!? He's a pal of Harry "the hotdog" Reid and like Harry, he loves to spend other peoples money.
By gmag39

April 29, 2009

12:15 p.m.

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This should be a civil matter between the idiot in question and the greedy casinos. If you are stupid enough to extend THAT kind of credit without a rock-solid, 100% guarantee of return, you deserve to be taken. And seriously, who the heck SHOULD be extended that kind of credit for gambling?
NO ONE.
By BigStack

April 29, 2009

12:26 p.m.

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For those who don't know, here's how it works:

This guy opened a credit account with the casinos, and took out markers. The casinos have pushed through a law that says that a marker is the legal equivalent of a check. After he lost the money, the casinos tried to collect, and he stiffed them. This makes it a bad check charge.

Any other debt collection issue would be a civil issue. But Nevada protects the casinos. Oh, and there something in it for the DA also. If they've forced to press charges, and the defendant coughs up the money, he has to pay them (either the county or state) a 10% fine.
By goingbust

April 29, 2009

12:35 p.m.

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I heard he was going to claim Force Majure in court in order to get out of this debt.
By equla

April 30, 2009

9:01 a.m.

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He used to play at the casino I work at downtown. The floor supervisors in high limit said he would take out a 10k marker and not even play. He has been using the casinos as his ATM machine.

What I want to know is: how did he manage to post $1.5m bail, but he couldn't pay his gambling debts at all. I understand there are bail bondsmen, but they require collateral. He was doing what all criminals do... Riding the horse until it bucks ya.