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More Charges Against Nightclub Operator Filed by Palms

The charges fly back and forth between the two sides in various filings in courtrooms. No one yet knows how it will all shake out, but it seems all but certain that more drama will unfold before the acrimonious break-up between the Palms casino-hotel and nightclub and restaurant operator Michael Morton is finished.

The Palms fired the latest salvo in the rancorous litigation in the direction of Morton, who heads the N9NE Group, which operates a group of fashionable nightclubs and restaurants at the Palms.

The litigation stems from Palms’ owner George Maloof Jr.’s filed allegations that Morton is diverting resources from a jointly owned company, N-M Ventures, to a project at Wynn Las Vegas.

The Las Vegas Sun reports that the latest charges were laid out in court. Maloof is alleging that Morton is engaging in “civil and criminal violations of law, including fraud, embezzlement, income tax evasion, subscribing to the filing of false income tax returns and possible violations of federal election laws.”

Morton’s attorney says he’s seen no evidence to back those allegations.

In previous filings, Morton denied a variety of other complaints, including allegations that he hosts expensive dinner parties, stocks his wine cellar with N-M Venture funds and uses N-M employees to work on his Wynn Las Vegas project called La Cave.

Morton is trying to get access to an audit of N-M Ventures carried out at Maloof’s request.

N-M lawyers are also trying to gain access to the audit, saying they’re being denied information about the company’s own accounting records.

Clark County District Court Judge Elizabeth Gonzalez is hearing the case.

Resource: Las Vegas Sun: “Palms steps up allegations against nightclub operator”: November 27, 2010

John P. Aldrich
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