Chicago Sun-Times: Casino 'didn't do anything' to probe investors, state panel told

Despite an obligation to root out problematic investors, Emerald Casino did nothing to probe the backgrounds of two allegedly mob- linked people before their family members were allowed to buy shares in the gambling venture, the former administrator of the Illinois Gaming Board testified Thursday.

Sergio Acosta, who spearheaded the probe into the Rosemont casino project between 1999 and 2001, testified "fairly little effort" would have been needed to discover that Nick S. Boscarino -- an Emerald investor's husband -- co-owned a company with a man authorities say is tied to the Chicago Outfit.

"My judgment wasn't that they didn't do enough; it's that they didn't do anything," Acosta testified at a state hearing to revoke Emerald's dormant gaming license.

Emerald lawyers suggested that the Gaming Board, with its access to FBI and State Police records, had a responsibility to inform the company of unsavory investors who could discredit Illinois' casino industry. But Acosta testified the onus was on Emerald to avoid such people.

When the Gaming Board learned of Boscarino's alleged background, they blamed Emerald for selling shares to his wife, and cited that as a reason for rejecting Emerald's plan in 2001.

Acosta did not claim that Emerald knew of Boscarino's alleged associations, but he did say "we had concerns that they may have known."

Boscarino once owned a trade show equipment firm with William Daddano Jr., who was accused by Attorney General Lisa Madigan of being a reputed member of organized crime. Rosemont Mayor Donald E. Stephens also owned part of the company and was friends with Boscarino.

Boscarino subpoenaed

Last year, when Madigan laid out the case against Emerald, she alleged Emerald principal owner Donald Flynn had to transfer some of his shares to friends of Stephens.

Stephens' attorney has denied the sale of casino stock to Boscarino was done as a favor to the mayor. Stephens publicly severed ties with Boscarino in 2001 after Boscarino was implicated in an insurance scam involving Rosemont. Stephens also has divested from the trade-show firm.

Boscarino last month was sentenced to three years in prison for the insurance scam. He and Daddano have denied any mob ties.

Acosta, who now is a federal prosecutor, finished his testimony Thursday. On cross-examination by Emerald attorney Robert Clifford, Acosta acknowledged he had never heard of Boscarino before a former FBI supervisor working for the Gaming Board alerted him.

The state has subpoenaed Boscarino to testify next week. They also hope to call Boscarino's wife, Sherri, whose name was on the trust that owned the Emerald stock, and his mother, who was listed as the trustee.