Prosecutor drops perjury charges against Pa. casino owner
A prosecutor said today he was dropping perjury charges against northeastern Pennsylvania casino owner Louis A. DeNaples in an agreement that requires him to turn over the business to his daughter.
Dauphin County District Attorney Ed Marsico said perjury charges against DeNaples’ friend, the Rev. Joseph Sica, also were being withdrawn. The deal was expected to be filed with the court in the coming days.
“We have obtained what we think is a big concession, and that is (DeNaples) will not be the CEO, he will not have an ownership interest in the casino,” Marsico said. “So that is a big step.”
Marsico said a linguistic expert concluded that the questioning of DeNaples by the state Gaming Control Board and of Sica by a deputy prosecutor raised legal issues that contributed to his decision to drop charges.
“One of the requirements with perjury cases is that the questioning be precise,” Marsico said. “A witness can’t be convicted of perjury for any answer that’s evasive, that’s ambiguous or imprecise.”
DeNaples’ spokesman, Kevin Feeley, said Marsico “realized that there was no basis to proceed and he did the right thing.”
DeNaples must turn over all his interest in Mount Airy to a trust in the name of Lisa A. DeNaples, who became Mount Airy’s chief operating officer last month. Feeley said the deal allows him to enter Mount Airy Casino Resort, provide advice about the business to his daughter and continue to act as a financial guarantor.
Two months before he was charged in January 2008, DeNaples had been preparing to transfer ownership of Mount Airy to his children and grandchildren.
DeNaples also must pay costs of prosecution, which Marsico said will exceed $100,000.
Feeley said the adverse publicity has been difficult for the DeNaples family.
“You can’t prosecute somebody by newspaper,” Feeley said. “I think you have to have the facts. In the end it was pretty clear the facts weren’t there to continue the prosecution.”
Marsico said that when the charges were filed, prosecutors were convinced the men had broken the law. Despite withdrawing the charges, he was unapologetic.
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“I don’t apologize for what we did a year ago, and I don’t apologize for what we’re doing today,” Marsico said.
DeNaples, 68, is a wealthy Scranton-area businessman with interests that include banking and garbage disposal. He opened what was Pennsylvania’s first freestanding casino in October 2007 under the state law that authorized as many as 14 slots casinos.
A Dauphin County grand jury concluded the family relationship between DeNaples and William D’Elia, a reputed mobster, were closer than DeNaples indicated to the gaming board when it granted him a $50 million slots license. It also alleged DeNaples lied about his dealings with Ron White and Shamsud-din Ali, figures in a Philadelphia municipal corruption scandal.
Had DeNaples been convicted of the charges, four counts of perjury, he probably would not have faced jail time, Marsico said.
Sica had been accused of lying to the grand jury about his relationship with the late Pennsylvania organized crime boss Russell Bufalino.
“I placed my trust in God, the truth and the system and I was not let down,” Sica said in a statement. “I am grateful that the prosecution recognized that the perjury charge against me was baseless and had the courage to act upon that insight.”
The gaming board, which had awarded DeNaples a license in 2006, has banned him from entering or exercising any control over the Pocono Mountains establishment. The board issued a statement late today noting it has a process for reviewing proposed ownership changes and it would discuss the matter at its April 22 meeting.
Marsico said the investigation “unmasked numerous problems” with the state’s casino-licensing process, and proposed a set of reforms in a letter to Gov. Ed Rendell and legislative leaders.
He recommended that the state attorney general or the state police perform background checks on gambling license applicants; that the gambling board be appointed by the governor, subject to Senate confirmation; and that the state prohibit convicted felons from working in the gaming industry.
In 1978, DeNaples pleaded no contest to a felony charge of conspiracy to defraud the federal government in a case involving government payments to clean up the aftermath of Hurricane Agnes. He was fined $10,000 and placed on probation.
Also today, a report on whether grand jury secrecy rules in the case were violated, issued in August by Dauphin County Common Pleas Judge Todd Hoover, was made public.
Hoover said his review of grand jury testimony indicated “that not one matter occurring before the grand jury was leaked, i.e., testimony, documents or records which are subject to the secrecy provisions.”
The state Supreme Court has directed that a special prosecutor look into the allegations by DeNaples that secrecy was compromised. Marsico said today he was confident the special prosecutor’s findings will mirror Hoover’s.