Pure investigation unnerves Vegas from celebs to Fire Department

Here is one example from the Sun story that ought to have Harrah's (Caesars parent company) concerned: "The degree of power and influence Davidovici exercised was surprising, especially given that he was operating these cash-happy clubs just steps away from the highly regulated casino floors. Take, for instance, the case of Ira Kiener, a club patron who filed a civil suit against Pure, Caesars Palace and Davidovici after an altercation in 2005.

"According to the suit, Kiener negotiated an 'entry fee' with Davidovici at the door to cover himself and his party. But when they entered, Kiener said Davidovici excluded two people. When Kiener complained, he alleged that Davidovici 'verbally and forcibly ejected' him from the premises. Kiener complained to Caesars management but was told the casino 'could do nothing — because they did not own, manage or control' the nightclub.

"While on his way back to his car, Kiener said, he had another encounter with Davidovici, who, accompanied by four bouncers, rushed him on the casino floor. They attempted to drag Kiener into the nightclub, he said. Security officers soon came, handcuffed him and handed Davidovici Kiener’s driver’s license. Davidovici disappeared into the nightclub and returned to hand back the license, the suit says.

" 'Now, I know where you live,' Davidovici told Kiener, the suit says.

"Davidovici denies the allegations."

Could any prospective employee with as sketchy a background as outlined in the Sun story get a job that allows him to work handling cash inside the casino in a resort? Probably not.  

And this was in 2005. How many other complaints over the years did Harrah's and/or Caesars get about Pure, and what, if anything, did they do about it?

For now, Harrah's is refusing to discuss the issue with me beyond noting that an investigation is underway and referring me to the public relations team for Pure Management Group. That attitude (to paraphrase: "This situation is not Harrah's problem but PMG's issue") has infuriated Sun gaming columnist Jeff Simpson, who writes this morning: "Las Vegas resort operators need to take immediate steps to eliminate tipping shakedowns in nightclubs in their properties." Simpson then concludes his column with the same point: "It's time for our resorts to stamp out tipping shakedowns in nightclubs." Simpson does not doubt that resorts have the power to accomplish this act. Leases are notoriously tilted in favor of casino landlords.

But the most shocking allegation to emerge this weekend was written by Review-Journal columnist John L. Smith on Sunday. Smith reports on a fire inspector visit to Pure in 2006. The inspectors asked Pure to hold the door (not let anyone else inside) because of the size of the crowd. This is routine, and I have seen it happen at concerts in Vegas at independent venues. The door is held, some people inside leave, and then the hold is lifted and the line moves inside.

But that did not happen this time, according to Smith: "Instead of following the decision, two members of Pure management asked to speak with the inspector's supervisor. The discussion ended with the inspector leaving the club, one informed source said."

And that is not where it ended either. Here is the true horror. Back to Smith:

"But, according to one source, something very important did come at least in part from that disagreement at the door of the nightclub.

"In January 2007, the Fire Department discontinued its practice of placing a fire inspector on the night shift.

"That's right.

"In Las Vegas, with arguably the hottest nightclub and topless cabaret culture in the world, the fire department charged with keeping the Strip from burning down gave its inspector the night off. Every night, in fact."

If true, this shocking behavior would have to be seen as part of a pattern of Harrah's properties like Rio getting special consideration from local fire inspectors and also in light of the recent fire at the Monte Carlo.

And so, from celebrity, to the smell of small-town back-scratching, to the shaking down of tourists, to fundamental fire safety issues, the PMG-IRS story has it all being alleged in the worst way possible.

And as a result, the media are finally putting the puzzle together from all directions.

How much longer will the resorts be able to do nothing but say that this nightclub issue involves only their tenants?