January 14, 2013
Nine Group club management nabbed in coke-and-hookers sting
The parent company of the Palms has agreed to pay a $1 million fine to settle a 17-count complaint by the Nevada Gaming Control Board resulting from a failure to prevent illegal activity, including drug sales and prostitution, at clubs on the property.
FP Holdings L.P. also agreed to pay $78,000 to cover the cost of the control board’s investigation.
“We are deeply concerned and disappointed about the matters outlined in the complaint as they are not consistent with the values of our company,” the Palms said Friday in a statement. “We are resolved to address these problems comprehensively and decisively.”
The Nevada Gaming Commission must approve the settlement. The violations contained in the 21-page complaint made public Friday were gathered during a joint undercover investigation by the board and Las Vegas police.