Jan 27, 2006 4:39 pm US/Central
Bankrupt Emerald Casino Sued By Minority Investors
CHICAGO (CBS) ―
A federal lawsuit has been filed against bankrupt Emerald Casino by minority and women investors, including the estate of late Chicago Bears legend Walter Payton.
The lawsuit filed this week in U.S. District Court named more than 10 people or groups as defendants, including the main owners of the casino. It sought to recover $21 million the investors say they lost when the state yanked the casino's gambling license.
In their lawsuit, the minority investors claim actions by the defendants caused them to lose their money, including "defendants' facilitation of and acquiescence in the apparent infiltration of Emerald by elements of organized crime."
The Illinois Gaming Board voted unanimously in December to revoke Emerald's gaming license, following a lengthy series of hearings presided over by former White House Counsel Abner Mikva.
The hearings stemmed from allegations that people with alleged ties to organized crime became investors. In revoking the license, the Gaming Boad called the casino a "stain on the gaming industry" where top company officials lied to regulators about allegations regarding investors with ties to organized crime.
While the revocation proceedings were in progress, the casino fought the authority of the Gaming Board to hold the hearings but failed in their efforts. Cook County Circuit Court Judge Sophia Hall ruled last year that an Illinois Appellate Court decision required that the casino's license be renewed, but also disagreed with a contention by attorneys for the casino and said the renewal would not affect the revocation proceedings.
The license that was held by Emerald has been dormant since 2001 when the board decided for the second time not to renew it. The revocation hearings began in 2002, but were put on hold two weeks later after Emerald was forced into bankruptcy and while the state worked out a settlement. That hearing resumed in May of this year.
(© 2006 CBS Worldwide Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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