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Claims Against Mirage Berated

LAS VEGAS -- Industry sources Monday dismissed as "almost laughable" claims that a former official at The Mirage was silenced and fired for trying to blow the whistle after the hotel-casino failed to file almost 15,000 anti-money laundering reports with the federal government.

Robert Kocienski, former executive vice president of The Mirage, in April filed a wrongful termination lawsuit against The Mirage. He claims he was fired more than two weeks after he learned on Feb. 4 that the casino's anti-money laundering reports were not being filed and later reported that failure to the Nevada Gaming Control Board.

A response to the lawsuit filed last month, as well as industry sources, however, said Kocienski knew of the failure to file at least as early as last August, and failed to report the problem to his supervisors, Mirage President William McBeath and Mirage Resorts President Bobby Baldwin.

MGM Mirage has admitted to allegations made by the control board that it failed to file 14,903 currency transactions, or Regulation 6A, reports over 18 months in 2001, 2002 and 2003.

It agreed May 23 to pay a $5 million fine, the largest fine in state gaming history. The state Gaming Commission will rule on that proposed settlement when it meets June 19 in Carson City.

Also, former Mirage 6A compliance officer Christopher Morishita has been charged with four criminal counts of failure to maintain required currency transaction records and released on his own recognizance.

Morishita could face up to five years in prison and $50,000 in fines if convicted on the charges.

Kocienski claims to have notified the control board Feb. 5 and to have scheduled a meeting with regulators for 4 p.m. that day.

Both Kocienski's complaint and industry sources agree that McBeath and Baldwin were not told there had been a failure to file any of the reports until after the control board had been notified and a meeting scheduled for Feb. 5.

Instead, Kocienski met with Mark Russell, general counsel of The Mirage, and together they decided to notify the control board of the infraction of rules governing anti-money laundering reports, sources said.

Kocienski claims in his lawsuit that "McBeath became angry" he had not been notified and told him to cancel the meeting. Kocienski further claims that before he had time to cancel the meeting, McBeath said he and Baldwin would meet with gaming control officials instead.

"Who would you want at a meeting like that? The normal process would be to send the highest officials available, and officials who were least likely to have been responsible or culpable," said one industry source who asked not to be named.

McBeath and Baldwin later met with gaming control officials, sources agree, and both MGM Mirage and the control board launched investigations.

Kocienski and former Mirage Controller Brian Burtenshaw, who also has filed a wrongful termination lawsuit, each seek $10,000 in damages.

Kocienski was terminated Feb. 21. Burtenshaw was terminated Feb. 19.

Daniel Marks, who represents both Kocienski and Burtenshaw, and Gregory Kamer, who represents The Mirage, could not be reached for comment.

MGM Mirage spokesman Alan Feldman said it was "not appropriate to comment on the litigation other than to say they were fired for cause and we'll make our case as need be in court."

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