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Non-Tech : LVEN:NASDAQ--Las Vegas Entertainment Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Q. who wrote (146)1/10/2000 12:59:00 PM
From: EL KABONG!!!  Read Replies (1) | Respond to of 228
 
lvrj.com

Monday, January 10, 2000
Copyright © Las Vegas Review-Journal

Company once tied to El Rancho raided

Review-Journal


The FBI raided the Arizona offices last week of a company once affiliated with the owners of the shuttered El Rancho on the Strip.

Because the agents were acting on a sealed search warrant, FBI spokesman Ed Hall told the Mesa (Ariz.) Tribune he could not reveal why a dozen agents searched records Friday in the Scottsdale, Ariz. offices of the U.S. Guarantee Corp. or whether anything was found.

Hall said as of Friday evening there had been no arrests.

U.S. Guarantee is a Nevada-incorporated company that agreed in October to back a $400 million loan to a Las Vegas man who was planning a $190 million purchase of 12.2 million shares of Las Vegas Entertainment Network, owner of the El Rancho.

On Oct. 9, Las Vegas Entertainment announced plans, in a Securities and Exchange Commission filing, to purchase Jackpot Enterprises, a slot machine distributor and operator, for $95 million in cash.

Six days later, the SEC halted trading on Las Vegas Entertainment's stock, and a day later the purchase offer for Jackpot was withdrawn. The stock has not traded since.

Las Vegas Entertainment has announced several plans for the El Rancho since it purchased the boarded-up property on the northern end of the Strip. But none of the plans has yet materialized.

The company has lost $47.5 million since it was founded in 1990, including $5.28 million in the first nine months of fiscal 1999.

Las Vegas Entertainment warned on Sept. 24 that its continuing losses "raise substantial doubt about the company's ability to continue as a going concern."

KJC



To: Q. who wrote (146)1/18/2000 2:01:00 PM
From: EL KABONG!!!  Respond to of 228
 
lasvegassun.com

January 17, 2000

FBI seeks bank records tied to LVEN

By Gary Thompson
<gary@lasvegassun.com>
LAS VEGAS SUN


The FBI has asked at least one bank for any financial documents linked to companies and individuals who may have been involved in the rapid runup and later crash of Las Vegas Entertainment Network's stock price last fall.

Meanwhile, neither LVEN nor federal regulators will comment about results of a secret investigative hearing in Washington D.C. on Friday concerning the status of the three-month trading halt in LVEN stock.

The Securities & Exchange Commission ordered Nasdaq to suspend trading of LVEN stock as of last Oct. 18, citing questions about "the adequacy and accuracy of publicly disseminated information concerning, among other things, an agreement to receive $190 million in cash from two investors."

Publicity about that alleged investment sent LVEN stock soaring more than 250 percent before falling back almost equally abruptly in just one day of heavy trading. Collectively, investors who bought during the price runup may have lost millions.

SEC spokeswoman Dara Feldman said the federal agency had no comment about the Friday session. "We don't talk about investigations at all," she said.

Nasdaq spokeswoman Nancy Condon said investigative hearings are not public. "If in fact one did occur, we still wouldn't say anything about it," she said.

"There was a hearing in Washington this morning between LVEN and Nasdaq," LVEN spokesman Tim Noyes said Friday from the company's headquarters in Los Angeles. But he declined to discuss what happened or specify who participated.

"Everything is halted right now, and I have nothing else to report," he said.

LVEN Chairman Joseph Corazzi didn't respond to requests for comment.

A bank executive who requested anonymity confirmed that the FBI, as part of a criminal investigation, has contacted financial institutions asking for records linked to LVEN, U.S. Guarantee Corp. and some of its principals and others associated with LVEN.

The FBI recently raided the Scottsdale, Ariz., offices of U.S. Guarantee, which had purportedly agreed to help Las Vegan Fred Cruz "infuse" a total of $495 million into LVEN. Cruz hung up on a Sun reporter seeking comment Friday.

Bureau spokesman Ed Hall told the Mesa, Ariz., Tribune newspaper he couldn't reveal why a dozen agents conducted the raid because they were acting on a sealed search warrant.

Cruz and U.S. Guarantee Chief Executive Alvin Tang have several criminal convictions on charges such as fraud, conspiracy, grand theft and forgery. Corazzi and LVEN's president, Carl Sambus, were executives in businesses that have previously filed for bankruptcy.

LVEN bought the closed El Rancho property near the north end of the Strip in 1993. It sold the El Rancho to International Thoroughbred Breeders in 1996 and eventually wound up with the right to receive some additional proceeds if it could find a new buyer for the run-down property at a higher price. The deadline for that deal was last April.

Meanwhile, LVEN filings with the SEC indicate the company issued 4.75 million shares of stock to insiders including Corazzi, Sambus and Cruz in the months leading up to the October price runup.

Those price gains were fueled by a series of announcements that alleged Cruz would invest $495 million into LVEN with the aid of financial transactions engineered by U.S. Guarantee. At one point, LVEN issued several news releases saying it was offering to buy Jackpot Enterprises Inc., a Nevada gaming company, for $95 million and claiming the money for the deal had come from Cruz through U.S. Guarantee.

Both Cruz and U.S. Guarantee claimed their assets included billions of dollars of gold dust or mining claims, though they later said some of the assets had been "lost" or erased from their balance sheets.

Neither Cruz, Corazzi nor Sambus have disclosed whether they sold LVEN stock during the price increase. The FBI's search for bank financial records may provide an answer.

KJC



To: Q. who wrote (146)2/10/2000 3:50:00 AM
From: EL KABONG!!!  Respond to of 228
 
Interesting little twist...

lasvegassun.com

February 04, 2000

Developer takes option on shuttered casino

LAS VEGAS SUN


Turnberry Associates, developer of a 750-unit, $650 million high-rise luxury condominium project near the Strip, acquired an option to purchase the defunct El Rancho hotel-casino.

John Riordan, vice president of sales for Turnberry, said the option has a six-month term. At this point, he said, the company has not decided on what it would do with the property -- or even if it wants to buy it.

"It's adjacent to (Turnberry Place), and it's an eyesore," Riordan said. "We'd like to see if there's some way we can make it work for us. An option is the best way of tying it up ... until we have a plan. We may buy it, we may not."

The Strip property is currently owned by bankrupt New Jersey company International Thoroughbred Breeders, and has been closed for several years.

The first building in Turnberry Place is scheduled for completion late this year. Development is expected to continue over the next four to five years.

KJC



To: Q. who wrote (146)2/24/2000 12:18:00 AM
From: EL KABONG!!!  Respond to of 228
 
Television station KVBC in Las Vegas continues to follow the El Rancho story...

msnbc.com

El Rancho Eyesore

Darcy Spears & News 3 Investigators

LAS VEGAS, Feb. 23
– Things have changed for the better since the News 3 Investigators first exposed conditions inside the El Rancho. You wouldn't know it by looking at the outside of the place, but county and state documents prove local leaders have now gone through the inside with a fine-toothed comb.

LIKE A HAUNTED HOUSE, the old El Rancho generates curiosity. Richard Acosta turned down a job at the El Rancho.

“I would definitely describe it as a ghost town,” he says.

“Why is this still in this condition?” wonders nearby business owner, Louise Goranson.

News 3 first exposed what's behind the El Rancho's closed doors and found a property falling apart.

Speculation, rumor, even fear surrounds the old hotel-casino.

“It looks like it's been burnt down,” speculate tourists Travis Moen and Helen Anderson.

“They figure that the mob somehow is involved,” Louise Goranson comments.

“It's very creepy,” business neighbor Connie Witt confesses.

“I wouldn't want to be near it,” admits Travis Moen and Helen Anderson.

Tourists Kimberly Carter and Raquel Twine agree.

“In Vegas with all of the growth and the expansion, it's very surprising. It makes you wonder what's behind it.”

News 3 first exposed what's behind the El Rancho's closed doors a few months ago at the invitation of some workers who asked us to conceal their identities. We found a property falling apart.

‘I couldn't believe when I read that the deep fryers still had the fat in them. I mean, what kind of vermin could be in there? ' —Myrna Williams Clark County Commissioner

“Be careful of this register, that's about 75 pounds and one of them came down and missed me by about two inches,” a worker warned us during the tour. “There's roaches and rats running all over, chemical room that could kill you, asbestos falling out of the ceilings, wiring that if you touch it you're gonna get fried.”

“The condition of the property has been this way for the entire length that I've been employed,” another worker told us.

And longer than that, according to Richard Acosta. Four years ago, Acosta was asked to inventory El Rancho's contents four years ago.

“I saw your story. It just brought back so many memories,” he disclosed.

Acosta says his memories of El Rancho are dark enough for him to decline what could have been a lucrative job.

“I just wasn't gonna bring my people in under those unsafe conditions, not being able to see properly, and again the exposed wiring and chemicals all over the place. It just felt very– health risks were definitely there.” he said. “I would imagine someone would be doing inspections on that place.”

EL RANCHO UNDER INSPECTION

Eight years after El Rancho closed its doors, that finally did happen once we brought the hazards to light and government leaders took action.

Both the Building and Fire Departments inspected and drafted dozens of pages of violations News 3 had documented on video.

“I couldn't believe when I read that the deep fryers still had the fat in them,” said a shocked County Commissioner Myrna Williams. “I mean, what kind of vermin could be in there, the odors, the difficulty. I mean– and the hazard– of course is number one.”

Even OSHA, who had never stepped foot on the property until our investigation aired, cited and fined El Rancho for the very violations we had uncovered. They fined El Rancho especially for the live exposed electrical wires and the corroding chemicals covering some floors.

“Unbelievable,” said Acosta.” One, that the El Rancho was still standing. And two, that those chemicals and the conditions were all still there.”

The property managers won't let us back in to show you how much has changed, but county officials assure us the place has been cleaned up.

“Things were cleaned up beyond his expectations,” says Steve Lasky with the Clark County Fire Department. “Floors were mopped, it looked like a different place.”

We're told other conditions have changed too.

COUNTRYLAND USA?

While most of El Rancho is decomposing, we found another part had been given new life and transformed into the promise of Countryland USA and laid out for potential investors as if development was just around the corner.

They even showcased new slots, in perfect working order, raising questions from long-time local newspaperman John L. Smith.

“If you're not licensed, then what are you doing with the slot machines?” asked John L. Smith.

That too is the subject of speculation over investment opportunities gone bad, but our story ensured the slots could no longer be used to entice investors.

Bally Gaming reclaimed the machines they had lent out three years ago and returned them to current inventory.

Even so, everyone we talked to remains skeptical.

“I don't understand why the county commissioners, for instance, could not exercise some of their power and condemn the place,” said business neighbor Connie Witt.

“The idea of neglecting something that large speaks volumes in its silence. Are they asleep at the switch? I can only say yes,” said John L. Smith.

Why has the county started clean-up but has not initiated a knockdown?

County leaders say that legally, their hands are tied. But locals don't buy it. As a band-aid, Commissioner Williams has promised to contact El Rancho's out-of-state owners for the first time to begin pressuring them to erase the eyesore.

The strip is in for some big changes as new development pushes north and we may have a bidding war brewing between two big wigs that could breathe new life into El Rancho. News 3 corners the county and forecasts El Rancho's future in our next report.

KJC