Statement by Geoconda Argüello-Kline, Secretary-Treasurer for the Culinary Union regarding concerns about Alex Meruelo’s financial suitability to own the SLS Las Vegas:

FOR IMMEDIATE RELEASE

Thursday, February 22, 2018

Media Contact:
Bethany Khan ▪ BKhan@culinaryunion226.org ▪ (702) 387-7088

Statement by Geoconda Argüello-Kline, Secretary-Treasurer for the Culinary Union regarding concerns about Alex Meruelo’s financial suitability to own the SLS Las Vegas:

The Culinary Union is concerned about the financial suitability of The Meruelo Group to own and operate the SLS Las Vegas. Letter the Culinary Union sent to the Nevada Gaming Commission on January 31, 2018 is here.

Last week, the Culinary Union delivered a letter to Nevada Gaming Commission members urging them to review Alex Meruelo’s financial suitability to own and operate the SLS Las Vegas.

The Culinary Union is asking Nevada gaming regulators to scrutinize three specific issues:

• Last March, Commercial Bank of California, where Alex Meruelo is an owner and a member of the board of directors, extended a $13 million loan to Rebuild Miami-Edgewater LLC, a speculative hotel development company facing foreclosure due to an unpaid $34 million loan. The company was (and still is) controlled by Richard Meruelo, who is Alex’s brother and has a history of business failures.

• A tax case brought by the IRS against Alex Meruelo and his wife in 2003 was delayed “pending the resolution of a federal criminal investigation” against a third person. In addition, the IRS had learned “that the Meruelos’ reported loss was generated by a tax shelter related to a grand jury investigation,” according to a published opinion by the U.S. Ninth Circuit Court of Appeals.

• Lastly, according to a lawsuit filed by EB-5 investors against the SLS and several other parties last fall, the pending sale of the resort to Alex Meruelo is based on a proposal that was not properly approved by EB-5 investors.

Since last week, the Culinary Union has been contacted by someone who claims to be an EB-5 investor who informed us of two additional lawsuits that have been filed by EB-5 investors. We have left copies of the lawsuits at the front desk for you. While Alex Meruelo’s suitability review is not on the agenda for today, we wanted to inform you of these new cases so that you have ample time to review them before he comes before the Commission.

The Culinary Union believes that a thorough examination of these issues are needed to ensure continued public trust in the integrity and reputation of the state’s gaming industry. At a time when the “North Strip” is beginning to see renewed development interest and activity, the stakes couldn’t be higher for all of the people whose livelihood, financial interests, and reputation are connected to the SLS Las Vegas.

 

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