Testimony: Binion had close ties to Blitzstein

A protected FBI witness has provided sworn testimony that alleges the late Ted Binion once loaned slain mob figure Herbie Blitzstein $100,000.

Blitzstein, according to the witness, Joe DeLuca, then loaned the money on the street to a California associate, named Ivy Ong.

The reported business deal was not known to state gaming regulators at the time they revoked Binion's license last May as a co-owner at the Horseshoe Club because of his ties to Blitzstein, an underworld loan-shark who was killed gangland style Jan. 6, 1997.

"If what DeLuca is saying could have been corroborated, it would have made our disciplinary action against Binion a lot easier," said former Gaming Control Board Chairman Bill Bible, who spearheaded the lengthy Binion probe.

"It shows that there was a much deeper relationship than what Ted portrayed in his testimony."

Keith Copher, the Control Board's chief of enforcement, said DeLuca's information "would have had a substantial bearing" on the board's case against Binion, who was murdered on Sept. 17.

Copher said gaming agents interviewed DeLuca before he pleaded guilty to racketeering in late 1997 and agreed to cooperate in the FBI's investigation into Blitzstein's murder, but DeLuca offered no information about the $100,000 loan.

Agents never were able to question DeLuca after he entered the federal Witness Security Program, Copher said.

DeLuca, a friend and business partner of Blitzstein, casually disclosed in federal court last week that Binion had loaned the $100,000 to Blitzstein, but DeLuca did not say when the transaction occurred. DeLuca was called to the witness stand to discuss the role of two reputed Buffalo mobsters in Blitzstein's murder.

During last year's revocation hearings before the Nevada Gaming Commission, Binion and his team of lawyers waged a ferocious fight in an attempt to save his gaming license, alleging the Control Board unfairly had singled him out. In the end, however, Binion could not overcome his own admissions under oath that he had been palling around with Blitzstein.

Binion had acknowledged being in Blitzstein's presence 25 times, but he never gave any indication that he had loaned money to the onetime confidante of murdered Chicago mob kingpin Anthony Spilotro.

Two years earlier before the Gaming Commission, Blitzstein had asserted his Fifth Amendment right against self-incrimination 21 times when asked about his relationship with Binion.

One of Binion's longtime lawyers, Richard Wright, said he found it "incredible" to imagine that Binion had loaned money to Blitzstein.

"Apparently, there's no corroboration of this whatsoever," Wright said. "We never heard anything like this or saw it on any (FBI) wiretaps."

But Bible suggested it would not be out of character for Binion to conceal some of his dealings with Blitzstein.

"Based on my experiences with Teddy, I'm not surprised that this could have occurred and that he may not have testified truthfully about his relationship with Herbie," Bible said.

New Control Board Chairman Steve DuCharme, who also participated in the Binion revocation probe, said he had no trouble believing that Binion could have deceived the board.

"At this stage in the game, with new twists and turns, there's nothing that really surprises anybody about Teddy and his financial affairs," DuCharme said.

Wright, however, insisted his client was truthful with the board.

"He told them what happened and let the chips fall where they may," Wright said. "Teddy often times was truthful to a fault. If the guy was a liar, why would he tell them of his constant association with Herbie, which they used against him."

While battling keep his license, Binion could not escape being linked to the Blitzstein murder investigation.

A month after Blitzstein was killed, homicide detectives at the request of FBI agents informed Binion that his life was in danger. FBI agents had received word that Blitzstein's underworld killers planned to murder Binion and rob his 2408 Palomino Lane home of valuables in the same manner as Blitzstein. The killers knew that Binion kept a lot of cash and coins on hand.

The plot never was carried out, but Binion died of mysterious heroin and Xanax overdoses 17 months later. His live-in 27-year-old girlfriend, Sandy Murphy, is reported to be one of the suspects a county grand jury is eyeing in his death.

In another link to Blitzstein's murder, jewelry Binion owned was among the items stolen from Blitzstein's home by his killers. The jewelry, which later was recovered, had been given to the mob associate for safekeeping.

As Binion tangled with gaming regulators last year, he also came under fire for loaning $100,000 to another reputed underworld figure, Peter Ribaste.

Ribaste, identified by the FBI as an associate of the Kansas City mob, wanted the money to open a car dealership.

Binion denied knowing that Ribaste had alleged underworld connections, but the Control Board still filed a complaint against Binion over the loan. The complaint was dismissed, however, after the Gaming Commission revoked Binion's license because of his ties to Blitzstein.

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