LAS VEGAS (AP) – The company that owns the Palms Casino Resort said Friday it will pay $1 million in fines after employees of casino nightclubs accepted payments to supply prostitutes, cocaine and pain pills in a series of stings last year.
The Nevada Gaming Control Board detailed the shady dealings in a complaint filed Friday, and the owner of the Palms, FP Holdings LP, said it would to pay the penalty for failing to prevent the illegal transactions.
Among other offenses, the complaint said employees of NM Ventures LLC and NM Ventures II LLC, which operates the nightclubs, offered to sell undercover agents ecstasy, the prescription painkiller oxycodone, and $18,000 worth of cocaine last March.
In one sting, a bottle runner at Rain nightclub agreed to track down prostitutes for a patron. After failing to find the women, the runner reached into a front pocket and produced $100 of cocaine for the undercover agent.
A Moon nightclub host responded to an undercover agent who asked for “party favors” by offering up “$100 of blow.”
The commission worked with Metro Police on the stings. Police held off on making arrests during the operation, but some are now imminent, according to Lt. Dave Logue of the department’s criminal intelligence section.
Authorities said they targeted the Palms because they suspected its nightclubs. The last comparable operation took place at the Hard Rock Hotel & Casino three years ago, Logue said.
Casino bosses were “concerned and disappointed” to learn of the activities apparently rampant at their nightclubs, Palms spokesman Alex Acuna said in a statement.
“We are resolved to address these problems comprehensively and decisively,” he said.
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,” Acuna told The Associated Press.
He said the Palms is also implementing mandatory drug testing, setting up a whistle-blower system and making changes in its security department to discourage employees from straying outside the law to meet customers’ requests.
The casino just west of the Las Vegas Strip is also installing “amnesty boxes” at club entrances, where patrons can dump drugs before entering the casino without fear of legal repercussions.
The $1 million fine must be approved by the Nevada Gaming Commission. The Palms has also agreed to pay $78,000 for investigation expenses.
Associated Press writer Joseph Altman in Phoenix contributed to this report.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
- 7 common ways to get sued by your employees
- Why it might be time to upgrade your toilet
- Arizona teachers are building a better future by using technology in the classroom
- How to make summer reading fun for the whole family
- How to find relief for chronic joint pain
- Can the NBA Lottery save the Suns?
- Skip Urgent Care: 5 ailments you can treat with telemedicine
- Skin Cancer in Arizona: Stats, facts and new immunotherapy drugs making strides
- Distracted walking injuries end up not so funny
- Scary situations: 5 quick tips before you let a contractor in your home
- Four ways telemedicine is changing the health care industry
- 5 mistakes homeowners make in the spring
- Three rivers run through it: Exploring Arizona's waterways
- Smart home basics: things you need to know to get started
- 5 Surprising things causing back pain
- Arizona agriculture is a $17.1B industry
- Timeline: Arizona's roots in brewing history
- 5 reasons to love the D-backs this season
- Tips for taking your home entertainment experience to the backyard
- Tech-related injuries your parents never experienced
- Workers comp: Signs your co-worker could be a fraud
- Who's the real founder of America's pastime?
- Epidemic rising? What you need to know about Alzheimer's in Arizona
- 5 unforgettable Wooden Award winners
- Family and hard work are keys to success of modern dairy farmers
- Genetic testing could hold answers for colon cancer survival
- Cold beers and baseball: A beer lover's guide to Spring Training
- Telecommuting: 5 tips to make it work for employers and employees
- See how top CFOs feel about economic growth in the Valley
- Migraine myths that keep patients from effective treatments