The mobsters had no doubt chuckled at the FBI’s embarrassment over the “cookie caper.” But that incident didn’t end the investigations; it only caused a change in investigative strategy. Eventually, Las Vegas’ Strawman case agent Lynn Ferrin got to have that last laugh.
Excerpted from The Battle for Las Vegas – The Law vs. the Mob.
After the cookie caper, the FBI changed tactics from covert to overt and went after the Stardust’s new owners, the Trans Sterling Corporation, openly. “We had enough information to start going over their records,” Ferrin said. “The Carl Thomas method of the skim primarily involved stealing from the count room. We found that another method of theft was also going on at the Stardust. This one involved the cashier’s cage.
“We looked at thousands of fill slips from the Stardust for the years that we knew the skim was going on. The fill slips were used when chips were removed from the cage to replenish the supplies at the gaming tables when they ran low on chips. The slips were required to have the signatures of four different casino employees. The money involved was about $20,000 per slip, and was presumed to reflect [casino] losses at the tables. We eventually discovered a pattern of forged signatures on the fill slips. That discovery led to the next step. We took handwriting samples from over two hundred Stardust employees and sent them to the FBI lab in Washington. Analysis revealed that the casino manager, Lou Salerno, was responsible for most of the forgeries.
“We got some good convictions in this phase. More important, though, through our investigation we were able to help the Nevada Gaming Control Board seize the Stardust. They revoked the licenses of the Trans Sterling people and fined them $1 million. The Stardust was eventually purchased by the Boyd Group, ending over a decade of mob control.”
That wasn’t the entire story for Lynn Ferrin, though. “The cage manager was a guy named Larry Carpenter. During the course of the investigation, he came to hate my guts. We lived in the same neighborhood and some mornings I’d come out to go to work and find that somebody had spit all over my car. I’d have to clean the car off before heading for the office. I suspected that Carpenter was responsible.
“Carpenter was gay and had full-blown AIDS. I thought maybe he was trying to infect me by having me come in contact with his body fluid and absorb it through my skin. Anyway, I stayed up all night to see if I could find out who was sliming my car. Around 5 a.m. I caught Carpenter coming around the corner on his bike. I could tell by the look on his face that he was the one. It never happened again after that morning. Carpenter later committed suicide, hanging himself when he went to jail.”
But there was more. “Lou DiMartini was a floorman at the Stardust. He claimed that during the investigation I caused him to suffer irreparable harm by asking his employer questions about him. He filed a $1 million civil suit against the government and me individually. It took seven years and the case went all the way to the U.S. Supreme Court where it was decided in the government’s and my favor.”
How does Ferrin sum up the results of the Strawman investigations?
“I think that our investigation basically broke the back of the mob’s efforts to control the casinos in Las Vegas.”
That last statement seems to say it all.