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Topless Club Lawsuit Claims Cabbie Kickbacks in Las Vegas

15 April 2002

LAS VEGAS -- As reported by the Associated Press: ``Olympic Garden topless nightclub owner Peter Eliades is accusing managers of a popular rival adult nightclub of conspiring with Las Vegas cabbies to steal business from him.

``A 20-page lawsuit filed Wednesday in Clark County District Court names the operators of the Palomino Club in North Las Vegas - Simon H. Stertzer, Luis A. Hidalgo Jr. and Alex Gherghe - as defendants.

``Also named are 290 unidentified drivers and supervisors from 13 of the 16 southern Nevada taxicab companies, including those owned by Yellow Checker Star Transportation, in which Eliades has a financial interest, the Las Vegas Sun reported.

``The lawsuit alleges the defendants carried out a racketeering conspiracy to unlawfully divert passengers away from the Olympic Garden on the north end of the Las Vegas Strip near downtown to the all-nude Palomino Club three miles down the street, costing Eliades thousands of dollars in business each night.

``...Eliades said he has refused to give money to cabbies, fearing it gives them an incentive to divert passengers from their intended destination, a practice that is illegal under state law. His outspokenness against kickbacks has prompted drivers to stage a boycott of the Olympic Garden.

``...District Judge Sally Loehrer issued a preliminary injunction temporarily barring the smaller clubs from tipping the drivers until the case is resolved. The Palomino Club was not named as a defendant in that lawsuit.

``Eliades is seeking a similar injunction and punitive damages against the Palomino Club in the racketeering lawsuit..."

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