The Nugget Casino Resort’s new management filed a FinCen complaint on the casino’s old ownership group.
Federal investigators are probing the bookkeeping practices of the former owners of Sparks Nugget, Inc. John Echeverria, an attorney for John Ascuaga, former owner of the Nugget Casino Resort, confirmed an investigation is taking place. The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury is the agency investigating Sparks Nugget’s bookkeeping and anti-money laundering practices from 2010-2013.
Sparks Nugget, Inc. is owned by John and Rose Ascuaga. Echeverria said that the FinCen investigation is a response to allegations made by the new management team of the Nugget Casino, Wolfhound Holdings LLC. The casino is owned by Global Gaming, which signed a contract with Wolfhound to have them manage the property.
Wolfhound Holdings filed court documents on Wednesday which said the previous owners “violated, among other things, the Bank Secret Act.”
Wolfhound Holdings Called for FinCEN Probe
In its filing, Wolfhound claimed in its filings that FinCEN is investigating whether Sparks Nugget violated the Bank Secret Act from 2010 to 2013 by failing to implement anti-money laundering policies.
The Sparks Nugget’s new management team claims the old mangers violated the “BSA’s program, reporting, and recordkeeping requirements”.
Part of the investigation is to see whether the former owners failed to report suspicious activity.
Olivia DeGennaro reported the Wolfhound Holding filing. Text from the court documents read, “Upon information and belief, the U.S. Internal Revenue Service and FinCEN have alleged that the Sellers lacked a culture of compliance and routinely disregarded anti-money laundering compliance requirements.”
About the Nugget Casino Resort
The Nugget Casino Resort is a 2-tower complex, with each tower consisting of 29 stories. The casino opened in 1955 as “Dick Graves’ Nugget”. In 1960, the 35-year old John Ascuaga bought the Nugget with a bank loan. Ascuaga made good money on the Nugget in the 1960s and 1970s, so he repaid the loan and expanded the complex in those years.
In the Sixties, work began on the Celebrity Showroom (known as the “Circus Room” at the time). Work was completed in 1984. Over the years, the Celebrity Showroom hosted acts like Liberace, Robert Goulet, and the Osmond Brothers. For much of its first 3 decades under John Ascuaga’s ownership, the Nugget Casino was home to Bertha the Elephant.
Building of a Second Tower
In 1995, John Ascuaga began the last major phase of expansion. He hired Peter Wilday, who had worked on the Peppermill and the Atlantis, to build the second tower. The expansion opened in 1997. By that time, John’s children, Michonne and Steven, were running the day-to-day operations at the Nugget Casino Resort.
The family chose not to expand any further. The younger generation deemed that the hotel did not need any more rooms. In 2013, the Ascuaga family sold the property to Global Gaming & Hospitality. At the time, the casino was losing money and the Ascuagas said they were not in a position to make renovations.
Global Gaming & Hospitality
According to reports, Global Gaming turned the casino around with new ideas and an influx of cash. At present, the company is in the process of selling the casino once again, this time to Marnell Gaming LLC. Marnell Gaming is owned by Anthony Marnell III, who also owns Colorado Belle and Edgewater Casino in Laughlin, Nevada (adjacent to Las Vegas).
Proposed Sale to Marnell Gaming
Anthony Marnell III said in a statement, “It needs a little more love and attention and it’ll be a great asset for the market. As we work to complete the transaction, we are excited to welcome all the great team members at the Nugget, and look forward to achieving continued success and growth together.”
John Ascuaga’s Legacy
Meanwhile, John and Rose Ascuaga are being investigated by FinCEN. One would hope that the federal investigation is not the last chapter in John Ascuaga’s association with Nugget Casino. The Ascuaga Family was the last mom-and-pop owners of a casino in Nevada, who had no holdings outside their lone gaming establishment.
If John Ascuaga was lax in the last few years, one has to remember he is now going on 91-year old. Others had operated the business for years, if not decades. One gets the idea that the investigation might be looking at people other than John Ascuaga and his wife, though their attorney is the one making public statements.
