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Atlantic City Resorts Demolition Allowed to Continue

3 October 2002

ATLANTIC CITY - An allegedly mob-tainted company can finish demolition at Resorts Atlantic City because the casino would suffer financial harm caused by the delay in contracting another firm, the Casino Control Commission ruled Wednesday.

"Commissioners voted 3-0 to let Maztec Environmental Inc. complete the five-week job, accepting the company's offer to place all payments to Maztec in an escrow account and promise that a controversial executive will have no involvement in the job.

"…Maztec lawyer Lloyd Levenson said he was `thrilled' with the ruling.

"…Maztec is being paid $400,000 to tear down Resorts' 166-room North Tower, which will be the site of a $115 million hotel expansion to open by June 2004. Maztec is allowed only to pay its employees; other funds it receives will be escrowed until the commission rules on the larger issue of renewing Maztec's casino-service industry license.

"… If Maztec were banned from the job, Resorts lawyer Hersh Kozlov said, the project would be delayed up to three months. The delay would create a `ripple effect' in scheduling other subcontractors and cause Resorts to alter deadlines with its lenders, he said.

"…The DGE (Division of Gaming Enforcement ) reported that Mazzocchi and Maztec have associated with Pino Schifilliti, an alleged captain in the DeCavalcante organized crime family; employed Frank Nigro, an alleged DeCavalcante soldier; and employed Operations Manager Charles DiMaria, who has associated with Schifilliti and who agreed to a lifetime ban from a labor union after it was investigated for mob influence…"

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