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Station Casinos Executives are Again Ordered to Testify

27 September 2000

KANSAS CITY, MISSOURI—Sept. 27, 2000—As reported by The Kansas City Star: "The chairman of the Missouri Gaming Commission has ordered seven executives at the Las Vegas headquarters of Station Casinos Inc. to appear and testify under oath at a special meeting next month in Jefferson City.

"If they do not appear Oct. 10, Chairman L.G. Ullery said Wednesday, the company's licenses to operate riverboat casinos in Kansas City and St. Charles, Mo., may be in jeopardy when they expire this winter -- or sooner.

"…Charles German, Station's lawyer in Kansas City, said late Wednesday that it hadn't been decided whether the seven executives would appear.

"…Although Station's Kansas City license expires Jan. 15, 2001, and St. Charles on Dec. 27, Ullery also ordered commission investigators to report at the commission's regular meeting later in October on Station's general suitability to hold state gambling licenses.

"…The Station executives ordered to appear Oct. 10 refused to obey commission subpoenas issued last month.

"..The commission voted unanimously Aug. 31 to revoke Station's Kansas City and St. Charles licenses for the seven executives' refusal to honor subpoenas and testify under oath at a formal inquiry that week in Kansas City.

"That inquiry centered on events surrounding the guilty plea in federal court earlier this year of former Station outside counsel Michael Lazaroff. The St. Louis lawyer admitted to multiple felonies, including misappropriation of law firm funds that included $500,000 in questionable bonus payments from Station…"

"…Station said last month that it was refusing to participate in what it termed an `unfair, one-sided proceeding' at which it could not cross-examine witnesses. The company also has challenged the commission's authority to issue subpoenas…"

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