Organized crime figures are actively involved in skimming, embezzlement, slot machine thefts and high-roller junkets in the legal gambling casino industry in Nevada and Atlantic City, a presidential commission was told Wednesday.
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A string of gaming investigators and federal agents detailed more than 20 ways of casino stealing by the underworld, beginning with the initial construction of a gambling hall and hotel in the form of kickbacks.
The testimony came during the last of three days of hearings by the President`s Commission on Organized Crime. The 19-member commission has been examining the role of organized crime in controlling or influencing legal and illegal gambling in the U.S.
'A top slot machine thief has told us that every large jackpot hit is being taken by thieves,' said Ryan Corrigan, a supervising Internal Revenue Service agent in Reno.
Corrigan said the leader of one gang that stole more than $20 million from slot machines in Las Vegas and Atlantic City was connected to an organized crime group. 'Whenever the gang went to Atlantic City, they had to get the approval from a New Jersey mob boss,' he said.
The IRS has at least one skimming investigation now underway in Las Vegas, but Corrigan would not identify the casino involved. Skimming is the practice of removing cash from casino counting rooms before it is tallied for income tax purposes.
FBI agent Charlie Parsons reiterated earlier court testimony that as much as $200,000 a month in skim money from the Stardust Casino in Las Vegas was delivered to reputed Chicago mob boss Joseph Aiuppa during the middle and late 1970s.
Aiuppa and 10 other reputed Midwest underworld chieftains face trial in Kansas City, Mo., in September on charges that they conspired to skim $2 million from the Stardust. Aiuppa, 76, had been subpoenaed to appear before the commission earlier in the week. His attorney, Santo Volpe, cited the upcoming trial and said his client would exercise the 5th Amendment if forced to come to New York.
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An undercover investigation by the New Jersey State Police disclosed that five organized crime families from New York, Pittsburgh, Philadelphia and New England are involved in the casino junket business on a large scale.
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'They place themselves in a position to profit from the junket activity without being scrutinized by law enforcement,' said Sgt. William Kisby of the New Jersey state police.
Stephen Wynn, chairman of Golden Nugget Inc., which owns casinos in Las Vegas and Atlantic City, told the panel that a recent federal regulation requiring the reporting of all cash transactions of $10,000 or more by casinos has had a negative effect on the gambling industry.
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'We have had customers leave and refuse to play when informed of the reporting requirement,' Wynn said.