Arrests ‘imminent’ in Palms drug and prostitution sting
Las Vegas police said Tuesday arrests were imminent in connection with a complaint filed against the parent company of the Palms, resulting from an undercover investigation that discovered illegal drug sales and prostitution at clubs on the property.
Police officials declined to discuss details of their investigation. None of the workers was named in the Nevada Gaming Control Board's complaint made public last week, and the complaint did not say if any had been arrested.
FP Holdings L.P. agreed to pay a $1 million fine to settle a 17-count complaint by the Control Board. The company also agreed to pay $78,000 to cover the cost of the control board's investigation.
The Nevada Gaming Commission, which must approved the settlement, will hold a hearing on Jan. 24.
In a statement, the Palms management said it is "concerned and disappointed" about he incidents outlined in the complaint. The company said the clubs were only partially owned by affiliates of the Palms at the time of the incidents, and the Palms didn't complete its acquisition of Nine Group until September.
Jerry Markling, chief of enforcement for the Nevada Gaming Control Board, said Tuesday a letter warning all gaming licensees to curb such activities on their properties sent out two years ago, "yet we still find these problems still continue in nightclubs."
"Yes, I would say there are ongoing investigations," Markling said. "We work very closely with Metro."
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
