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Wednesday, Oct. 21, 2009 | 2 a.m.
Terrance K. Watanabe, right, claims to have lost $112 million at Harrah's casinos in 2007. He alleges the company encouraged him to gamble while intoxicated.
Sun Archives
- Harrah's hires local gun to help in Watanabe case (9-13-2009)
- New attorneys assist in Harrah's probe of high roller's intoxication claims (7-25-2009)
- High-roller fights law regarding collection of gambling debts (7-17-2009)
- Grand jury indicts high roller in $14.7M casino debt case (4-29-2009)
- High roller posts $1.5 million bail to avoid jail stay (2-18-2009)
Sun Coverage
Las Vegas attorneys David Chesnoff and Richard Schonfeld are the architects of an unusual defense being mounted by high roller Terrance Watanabe in a $14.7 million Strip gambling debt case.
They contend the Nebraska philanthropist can’t be held responsible for not paying back two Harrah’s Entertainment casinos because the resorts kept him constantly intoxicated.
But the lawyers won’t get a chance to test their arguments in court. They have withdrawn from the case without explanation and are being replaced by well-known Los Angeles litigator Pierce O’Donnell — just as their motion to dismiss the criminal charges against Watanabe is set to be argued next month. The hearing is now likely to be delayed.
O’Donnell, a colorful attorney with a long list of big-name clients, is coming off a win in his own legal troubles. Federal campaign finance charges against him were tossed out in Los Angeles in June. The case stemmed from allegations O’Donnell had funneled $26,000 in campaign contributions through his law firm’s employees to the 2004 presidential campaign of John Edwards.
These days O’Donnell is known best for his role as lead trial counsel in litigation to hold the U.S. Army Corps of Engineers accountable in the Hurricane Katrina disaster in New Orleans.
In the past O’Donnell has taken on the wealthy Hollywood film industry, so going after the world’s largest casino company is a natural for him.
•••
Dr. Dipak Desai’s lawyers say a stroke left him unable to participate in the many legal proceedings he’s facing.
Dr. Dipak Desai, the majority owner of the Endoscopy Center of Southern Nevada, leaves a hearing at Las Vegas City Hall on March 3, 2008.
But U.S. Bankruptcy Judge Mike Nakagawa isn’t buying their argument.
Sun Archives
- Endoscopy plaintiffs target drug suppliers (10-13-2009)
- Desai says he didn't see or approve settlement (10-2-2009)
Sun Topics
On Friday, Nakagawa ordered the physician at the center of last year’s hepatitis C outbreak to submit to a sworn deposition in the bankruptcy case involving his three now-closed clinics.
Nakagawa also ordered Desai to “promptly” turn over to the bankruptcy trustee in the case his financial records dating to July 2007. That includes his 2007 and 2008 tax returns and those of his clinics.
Lawyers suing Desai for monetary damages in District Court on behalf of his former patients are champing at the bit to get those records.
The trustee, Brian Shapiro, expects to schedule the deposition within six weeks.
Desai, however, isn’t likely to be cooperative.
In Bankruptcy Court papers last month, Desai’s lead criminal defense attorney, Richard Wright, said Desai’s cognitive skills are so diminished that he “can’t accurately recall or articulate facts or comprehend legal concepts and proceedings.”
Wright advised Desai to assert his Fifth Amendment right against self-incrimination and not answer questions at previous depositions in the civil litigation. That’s because Desai is the target of a Metro Police investigation over the hepatitis outbreak.
So far, Desai has managed to avoid making any public appearances during the legal proceedings against him. Wright and his partners have taken the Fifth for him.
This time Desai will have to be on hand, but Wright is still expected to assert the privilege on his behalf.
The deposition will be conducted behind closed doors.
•••
Embattled Pahrump developer Hans Seibt has thrown in the towel in Bankruptcy Court.
Seibt has signed an agreement that prevents him from discharging his debts in his $70 million bankruptcy case.
That means Seibt’s creditors, many of them senior citizens who invested heavily with Seibt, can now file suit against him to recover their losses.
In court papers filed this year, Lenard Schwartzer, the bankruptcy trustee overseeing Seibt’s case, accused Seibt of defrauding his investors through an illegal Ponzi scheme.
Seibt denies the allegations, but Schwartzer’s investigator is continuing to look for evidence of fraud on the developer’s part.
The FBI also is investigating Seibt.
I can see it now two casino hosts holding him down while the the pit boss pours what ever his favorite drink is two or three at time as he says hit me ....... I see that give him back his cash.
He should have followed the ten basic rules of gambling as published by the late great Lefty Rosenthal. I think NO DRINKING was # 1....
Well this guy was given anything he wanted and these casinos did bow down to him.so to say they plied him with liqour and pills is probably an understatement,they were delivered to his door.i beleive everything he says.the casino bosses didn't do it personally but i'm sure someone was assigned to him ask his casino host i.m sure he knows the gig.
When the TRUTH finally comes out, it will be embarrassing for the Gaming industry in general, and Harrah's in particular. And, it will mean even more bad news for our State and our citizens. Isn't this the same industry that allows their nightclubs to violate the laws of prostitution, drug usage, underage drinking, not reporting tip income...the Boulevard of Bad Habits!
What a pathetic piece of work this guy is. It always someone elses fault isnt it. Mr Watanabe cant handle the fact that hes a compulsive gambler/loser. Is he going to sue Jack Daniels cause their product made him lose all his money? What a degenerate...
Oh yes I can sue for my loss at casino, too. Soon there will be no alcohol offered in Casino, or signing waivers will be required before we get free drinks. Thanks Watanabe!
how do you gamble that much money.. that is nuts.. whats the point.. you already have millions its not like your gonna make more than you have.. crazy
Total GREED on both parties
Perhaps I'll be lucky enough that I won't be able to be held responsible either when I go to Vegas next month, drink to my hearts desire and jack up my credit card bills. What are the chances? What are the odds? Seeing as all personal responsibility seems to have flown out the window for this guy.
Also, judging by this guys talent for losing, I need him at my house for my next poker tournament!
Poor judgment on Harrah's part to go after $14 Million when the player lost over $100 Million...write it off...bad debt...save the public relations nightmare and the legal expenses to defend their side of the story...should not have pursued the debt remaining in the first place...only paper anyway...not like they brought in more help to handle the customer. Hope this new attorney keeps Chesnoff in the mix!
Can anyone tell me of a completed jury trial done by either David Chesnoff or Richard Schonfeld?
Anyone? Anyone? Bueller? Bueller?
I would find it hard to believe that the Casino could defend a defense where the player claims a state of drunkenness. Casinos since inception have always pushed booze down their patrons for a reason, irrational choices made when one is in a state of drunkenness. It about the money and for the most part the higher the intoxication the casinos odd's increase. Every once in awhile a lucky drunk will win, not too often though because they will not leave and end up leaving more than they've won.
I lost a $100 and was drinking so where do I sign up for a trail
His gambling stategy sounds a lot like my mothers. She would get off work and sit at a video poker machine and blow her whole $800 check on a machine that's jackpot was $1200.
(sigh)
As I stated on previous articles about Watanabe. Lower level managers, supervisors and employees probably looked the other way in fear if they said something they would lose their jobs. Property Executive Level Management knows what is going on with their big players and this was Harrah's #1 player. If the allegations are true then Caesars Palace broke a number of Gaming Laws and employees on their employers behalf also broke a number of laws. I feel that this should be investigated. I read somewhere that HET hired a law firm that does investigations. Probably to appease regulators and to preserve their license to operate Caesars.
As for Watanabe, bad gambler, loses a lot of money. I have dealt with him in the past. However other than his drinking, drug and gambling habit, he is actually a very nice, giving person. I wish him godspeed in his recovery.
lvcomments :
I have suspected that you are some kind of either current or ex casino manager or pit boss or something like that, but don't you think that at some point someone has to put the brakes on this type of reckless momentum on both the part of the degenerate gambling player, and the hotel/casino's willingness to break laws to greedily take the man's dough?
the truth will never come out of the rio's mouth, I know for a fact when this man would come in the casino , they ( casino ) knew ahead of time and had his 2000000 at his table ,they gave this man all he wanted and he even had a security officer from the Rio with him 24/7 all they need to do is check payroll records . I know i was their ! i seen so much crap it would make your eyes roll back. This man had rooms at all of harrah's locations ,plus much more .i hope this man wins and let harrah's write it off , sad ,sad ,sad.