Some casino executives are suing the Drew Las Vegas for breach of agreement and fraud. The five casino executives clam that they were persuaded to join the Drew team.
according to the lawsuit, Paul Berry, Robert Mancari, Farid Matraki, Michael Tozzi, and Michael Peltyn were offered six-figure salaries. Also, they were guaranteed bonuses, and generous severance packages by Drew Las Vegas.
Instead, the five were all fired between March 31 and April 7 after receiving parting agreements requiring them to relinquish all claims against the developer in return for just two months’ pay.
The contracts of the casino executes however has clauses that states that if their employment is terminated for any reason other than for being fired for cause, they would be paid the balance of their salaries and bonuses for the remainder of their contracts. The balance would be four years from the date they were signed, in most cases.
Headhunted then Fired
The lawsuit names developer the Witkoff Group; the Chairman and CEO, Steve Witkoff ; his son Alex Witkoff as well as the former MGM executive who also happened to be the Drew CEO. There were other people who were listed in the lawsuit as well.
Financial Basis
Wikoff was expected to finalise a $2 billion construction loan in late February. The company told the Nevada regulators when the deal would be finalised.
According to the lawsuit, the five executives were assured on numerous occasions that developers had secured full financing for the project. Contractors involved in The Drew’s construction also claim that they are owed more than $36 million in unpaid bills. Also, this was according to the lawsuit that was filed in Clark Country last week.
Conclusion
The Witkoff Group released a statement last week saying that the Group was commited was commited to the project. The Group also said it was confident that the project would be completed.
FAQs
[accordiongroup id=”710″ markup=”default”][accordion group=”710″ title=”Will the Drew have a Land Based Casino?” active=”true”]The casino is currently under construction on the Las Vegas Strip in Winchester, Nevada.[/accordion][accordion group=”710″ title=”What was the Drew Las Vegas’ former name?” active=””]It was formally named Fontainebleau Las Vegas.[/accordion][accordion group=”710″ title=”Who owns the Drew Las Vegas?” active=””]The construction of The Drew Las Vegas which was formally named Fontainebleau Las Vegas began in 2007. Bankruptcy as well as the recession halted construction of the hotel and casino in 2009. Carl Icahn then bought the property the following year for $148 million. Icahn sold the property to developer, Steve Witkoff and New Valley LLC in 2017 for $600 million.[/accordion][accordion group=”710″ title=”When is the Drew Las Vegas hotel and casino expected to open?” active=””]According to The owners of the Drew Las Vegas hotel and casino, the property is expected to open in 2022.[/accordion][/accordiongroup]