Diverted customers not always pleased with final destinations
June 5, 2009 - 9:00 pm
Is the cash-for-customers relationship between local strip clubs and the valley's army of cab and limo drivers coming to an end?
That's clearly the intent of the class-action lawsuit filed this week in U.S. District Court by Chicago attorney Jay Edelson on behalf of California tourist Theodore Trapp, who claims he was diverted from one club to another and was a victim of a complex extortion scheme that adds up to civil racketeering.
The lawsuit alleges, "Due to the large sums of money involved, Drivers are incentivized, and in fact do, illegally coerce and fraudulently and misleadingly divert customers away from visiting their chosen destinations when such destinations are not among the Clubs, and instead deliver such customers to the Clubs that provide the largest kickback for diverting customers.
"Drivers routinely falsely tell their customers that certain requested destinations are substandard, undesirable, out of business, riddled with bullet holes or sometimes even 'burned down.'"
For months I've been telling you about the river of cash flowing from local topless cabarets to cab and limo drivers, who have been paid up to $100 per person to drop off customers. On occasion those customers are diverted to the club that pays the drivers the most money.
The more successful clubs have been writing off the cash drain as a marketing expense. Other clubs have felt the pinch and have jacked up their admission fees and drink prices. Meanwhile, those limo drivers who have been making big scores are compelled to kick some of the cash up the line to Strip resort door personnel, who also have palms to grease.
Now the topless/taxi war has broken out on multiple fronts. It adds up to headaches for cab companies and strip clubs and potential embarrassment for corporate Las Vegas.
But I wonder, will hundreds of diverted customers come forward and sign their names to affidavits claiming they were harmed?
In this case, it's likely the lawsuit will generate an injunction that will halt the cash-for-customers program.
On a second front, attorney Al Marquis continues to represent a group of businessmen, cab company owners among them, called Fairness in Transportation. The group has written letters to Las Vegas casino presidents raising issues of ethics and fairness regarding the kickback scheme.
After reviewing the Trapp lawsuit, Marquis said, "The problem with paying for the delivery of customers is that it's been escalating in recent years. It has begun to substantially alter the conduct of lots of different parties from hosts and doormen at casinos; to individual cab and limo drivers; to tourists getting diverted over their objection. Our position has been, this is bad for Las Vegas. It leaves a sour taste in the mouth of tourists."
Marquis is working on changing local ordinances regarding the payment of drivers by businesses for the delivery of customers.
OFFICER DAVE: When Dave Rooney was stricken with a mysterious paralysis in late March, his family and friends initially thought they might lose the veteran Metro officer. Rooney's condition was eventually identified as severe sepsis, an infection that harms the nervous system, and he's been gradually recovering from the life-threatening illness after many weeks in the hospital.
A fundraising ride for Officer Dave is set for 8 a.m. Sunday at the Zelzah Shrine Temple at 2222 W. Mesquite Ave. For $20, participants in autos and on motorcycles can convoy up to the Resort at Mount Charleston. It's not only for a good cause, but it includes food and a chance to win some handsome prizes.
GAMBLER'S BOOK SHOP: After nearly half a century in its downtown location, the Gambler's Book Shop is moving to 1550 E. Tropicana Ave., Suite 4. The store will open Monday in its new location.
UNLV BASEBALL: Are UNLV officials looking to replace baseball coach Buddy Gouldsmith after four straight losing seasons? There's a groundswell of local support for Manny Abeyta, the former Rebels pitcher and minor leaguer who possesses decades of experience and contacts ranging from Strip boardrooms to local high school baseball diamonds.
ON THE BOULEVARD: Just when it appeared the "Mafia Cops" drug case of Anthony Eppolito and Guido Bravatti was finally ready for trial, it's been delayed once more. Something definitely is going on behind the scenes, but what? At a case conference this week, the trial date was reset to Sept. 1.
John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295. He also blogs at lvrj.com/blogs/smith/.