BUSINESS

Palms Casino fined $1 million after prostitution and drug bust; Trump Entertainment names new Board of Directors CEO

TAGs: Business, casinol, Legal, Palms, trump entertainment

palms gets fined trump new ceoThe Palms Casino has obliged to the decision handed down by the Nevada Gaming Control Board regarding the $1 million fine meted to the casino after employees of its nightclubs were busted accepting payments from customers to supply them with prostitutes and plethora of drugs, including ecstacy, cocaine and pain killers.

According to the Associated Press, the owners of the casino, FP Holdings LP, has agreed to shell out the amount, despite the fine still subjected to approval by the Nevada Gaming Commission. It seems that Palms isn’t waiting for the bad press that an NGC signing off on the fine would have done to their business, fessing up before a decision is even made by the gaming commission. Palms spokesman Alex Acuna issued in a statement the “concern and disappointment” his bosses had when they found out the elicit activities happening from under their proverbial noses. “We are resolved to address these problems comprehensively and decisively,” Acuna added, as quoted by the Associated Press.

In addition to paying the fine, the Palms will also begin to implement a mandatory drug testing, as well as set-up a whistleblower system and making significant changes to its security department, all of which are being put in place to make sure that employees are cognizant of the possible repercussions another episode like this will have on them.

Authorities have had an eye on the Palms for quite some time, suspecting that prostitution and drug transactions were happening in the casino’s clubs. Apparently, their hunch was dead-on after employees of operators of the nightclubs, NM Ventures LLC and NM Ventures II LLC, offered to sell undercover agents a host of illegal drugs, including ecstasy, cocaine, and oxycodone, a prescription painkiller, among other things.

To their credit, Palms is owning up to the malaise, writing the proverbial check before a decision had even been made by the Nevada Gaming Commission. In the words of Acuna: “At the time of the sting, the subsidiaries that ran the nightclubs were only partially owned by the Palms. They’re now fully owned subsidiaries so we have a lot more oversight and visibility into the organization.”

Trump Entertainment Resorts tabs Robert F. Griffin as new chairman of the board

Meanwhile, Trump Entertainment Resorts has named a new chairman of the board of directors of the company, tabbing Robert G. Griffin (not the Washington Redskins quarterback) to succeed Marc Lasry after the latter resigned from the Board effective February 28, 2013. Griffin has been serving the role as Trump Entertainment CEO and as member of the Board since 2010. But with Lasry’s resignation, Griffing now occupies the kabisera seat in the board room, something his predecessor noted in his departure statement. “Trump Entertainment has made marked progress since reorganizing, which provides me with the opportunity to step down as Chairman,” Lasry said.

“I want to thank Bob for his leadership as CEO since 2010, and believe he will serve as an excellent Chairman of the Board as Trump Entertainment moves forward.”

In addition to Griffin, Avenue Capital Group’s Michael Elkins has also been named to the Trump Entertainment Board, taking the seat vacated by Griffin now that he’s on the head of the table.

 

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