Monday, June 14, 2010 | 5:24 p.m.
Las Vegas gaming executive John Gaughan and one of his companies, Gaughan Gaming LLC, have been sued after allegedly defaulting on loans totaling more than $5.8 million.
A suit was filed in Clark County District Court on Friday also naming as a defendant Michael John Gaughan.
The plaintiff is Multibank 2009-1 RES-ADC Venture LLC, a company that bought loans from the Federal Deposit Insurance Corp., receiver of the failed Silver State Bank.
The suit says that John Gaughan in 2006 borrowed $1 million and that his company Gaughan Gaming in 2007 borrowed another $4 million.
The loan holder claims in the suit that John Gaughan and Michael John Gaughan personally guaranteed repayment of the $4 million loan.
Multibank claims $1.158 million is owed on the first loan and $4.7 million is due for the second loan.
Besides seeking to recover on the accounts held by Gaughan Gaming, the lawsuit seeks an order enforcing the personal guarantees of the Gaughans.
It wasn’t immediately clear if the Michael John Gaughan named as a co-defendant is John Gaughan’s father Michael J. Gaughan, who owns the South Point hotel-casino; or if he is John Gaughan’s brother Mike Gaughan Jr. The plaintiffs couldn’t immediately be reached to clarify that point.
A spokeswoman for Michael Gaughan, owner of the South Point, said he would have no comment on the suit since he does not own Gaughan Gaming LLC.
A message for comment was left Monday with John Gaughan.
According to the Gaughan Gaming website, John Gaughan and his brother Mike Gaughan Jr. are executives there.
John founded Las Vegas Dissemination Co. in 1988 and it has grown to become the largest provider of pari-mutuel wagering and horse racing simulcasts, the website says.
Las Vegas Dissemination Co. says it’s the exclusive pari-mutuel service provider for Nevada's gaming industry and all major out-of-state casinos including Atlantis Paradise Island Casino (Bahamas); Cities of Gold (New Mexico); Elite Turf Club (Curacao); Foxwoods Resort Casino (Connecticut); Meskwaki Casino (Iowa) and The Stables (Oklahoma).
Before joining Gaughan Gaming, Mike Jr. worked at Coast Casinos including managing the Barbary Coast Hotel and Casino through a major remodel and overseeing the construction and opening of the South Coast, now the South Point, the website says.
Gaughan Gaming in April was named in an Alabama newspaper story as being associated with a casino there, the Southern Star; as well as the Native Lights casino in Newkirk, Okla.
Located South of the Strip, South Point is a hot spot frequented by locals. The hotel-casino is decorated in a Pacific Coast feel, with golds, reds and browns, mixing an island feel with the ambiance of Southern California.
Guests rooms feature 42-inch flat screen TVs, iPod docking stations and plush linens. Outside, the property features landscaped gardens, a hospitality to entertain poolside and a sand volleyball court.
When it comes to gaming, the South Point has more than 120,000 square feet of casino games, as well as a separate race books and sports books, a bingo and poker room. South Point also has some family friendly features, like a 64-lane bowling center, an arcade and a 16-screen movie theater.
Dining options range from an upscale meal at Michael's Gourmet to ice cream at Kate's Korner. The 24-hour Coronado Cafe is the perfect spot for a late-night craving, which include six midnight to 6 a.m. "graveyard" specials. Other restaurants include the Big Sur Oyster Bar, Don Vito's, Garden Buffet, Seattle's Best Coffee House and the Del Mar Deli.
One of South Points more unique features is the Equestrian Center and Arena, a first for Vegas. The Equestrian Center holds a variety of events, from college basketball to Championship Bull Riding.