from:
http://www.gopbi.com/news/1999/03/05/malnik2.html
ws in partnership with The Palm Beach Post and NEWS 12



                             Surrounded by crime figures

                             Alvin Malnik has never been convicted of a
crime.

                             But government accusations that he was an
underworld
                             businessman have dogged him and many of his
                             associates for decades.

                             When the owners of Caesar's World applied to
open a
                             New Jersey casino, the state's Casino Control
Commission
                             turned down the request, citing the owners'
links to Malnik
                             in a lengthy investigative report, issued in
1980 and
                             reinforced 13 years later.

                             In the findings, Lansky figured most prominently
among
                             Malnik's alleged mob connections. Described in
                             newspaper headlines as "Chairman of the Board"
and the
                             "Financial Wizard of the Underworld," Lansky
opened
                             gambling operations in South Florida after World
War II
                             and controlled casinos in Cuba and Las Vegas. His
                             notoriety led to his inclusion in The Godfather,
Part II.

                             "It was a known fact among the criminal
underworld that
                             dealing with Al Malnik was the same as dealing
with
                             Meyer Lansky," Vincent Teresa, "a convicted
criminal
                             and frequent government witness currently in the
federal
                             Witness Protection Program," swore to
investigators,
                             according to the New Jersey report.

                             When Lansky died in 1983 at age 81, Reader's
Digest
                             named Malnik his "heir apparent." The moniker
stuck.

                             In a rare interview Wednesday, at his lakefront
estate,
                             Malnik denied mob connections. He said he's done
                             nothing illegal and never worked with Lansky,
except as
                             his attorney.

                             "I had, I must say, quite a good reputation," he
said,
                             saying the work for his infamous client was
probably the
                             result of a referral. The pair met face-to-face
just once,
                             by chance, Malnik said.

                             "My representation of a man in some civil
matters in the
                             early '60s has been converted by the media into
                             relationships that never existed," he said.
"It's the most
                             preposterous, ridiculous, indefensible situation
to be in."

                             Some are reluctant to forget it.

                             Even now, gaming officials in Nevada and New
Jersey
                             don't want him in their casinos.

                             "He is not welcome here," James Hurley, the
chairman of
                             the New Jersey Casino Control Commission, which
                             regulates the state's gambling industry, said
last week.
                             "He's done nothing to overcome his reputation of
being
                             closely identified with Meyer Lansky and other
organized
                             crime figures."

                             The commission report

                             Short, with a muscular build and a soft voice,
Malnik was
                             born in St. Louis in 1933. He married, moved to
Florida
                             in the 1950s and graduated from the University
of Miami
                             Law School.

                             By the age of 30, he had made a name for himself
with
                             federal authorities.

                             Among the details in the 1980 gaming commission
                             report:

                             � In 1962, Malnik was listed as a director of
the Bank of
                             World Commerce, a Bahamas-based institution that
                             involved "some of the nations' top gangsters,"
the report
                             said. "Millions of dollars passed through the
door and
                             were reinvested in syndicated controlled
projects in the
                             United States." While connected with the bank,
Malnik
                             was indicted in Florida on charges of
under-reporting his
                             income. He was later acquitted.

                             � In 1964, Malnik organized a company,
Scopitone, that
                             produced jukeboxes with attached video screens.
Among
                             its stockholders were men police believed to have
                             organized crime ties. They included Irving Kaye,
who in
                             1965 was denied a Nevada gaming license because
of
                             his questionable associations, and Vincent
"Jimmy Blue
                             Eyes" Alo, who was convicted of obstructing the
                             administration of federal securities laws.

                             � In charges related to Scopitone, Malnik was
indicted on
                             charges of tax evasion in 1966 by the U.S.
attorney's
                             office in New York. The indictment was
dismissed.

                             � In the early 1970s, Malnik invested with
Clifford
                             Perlman, chairman of the board of Caesars World,
in the
                             Cricket Club, a Miami high-rise with 220 condos.
The
                             developer: Cal Kovens, who served three years in
prison
                             after being convicted with Teamsters boss Jimmy
Hoffa
                             on fraud and conspiracy charges in 1964. A
builder worth
                             millions, Kovens would later chair the board of
Mount
                             Sinai Medical Center in Miami.

                             � In 1971, Malnik and Sam Cohen, who had been
                             indicted with Lansky on charges of "skimming"
more than
                             $30 million from the Flamingo Hotel and Casino
in Las
                             Vegas, bought 325 acres of undeveloped land that
                             belonged to a Dade County country club called
Skylake.
                             Malnik ultimately realized a net profit of $14.7
million,
                             according to the report.

                             "The evidence establishes that Mr. Malnik
associated
                             with persons engaged in organized criminal
activities,
                             and that he himself participated in transactions
that were
                             clearly illegitimate and illegal," the gaming
commission
                             said in a 1993 reiteration of its earlier
findings.

                             The second report resulted from a weekend trip
Malnik
                             took in August 1992 with six people to Caesars
Atlantic
                             City Hotel and Casino. The Casino Control
Commission
                             reprimanded employees of Caesars, where Malnik's
party
                             stayed in a complimentary three-bedroom suite,
and the
                             Trump Taj Mahal, where Malnik saw a concert by
singer
                             Joey Loren.

                             Referring to the commission's earlier
determinations, the
                             report said, "The mere passage of time does not,
in and
                             of itself, disturb these findings."

                             Almost two decades since the initial
investigation, Malnik
                             asked a familiar question Wednesday: "If there
was any
                             violation, why wasn't I brought to the bar of
justice?"

                             The Florida law
                             Click here for more

                              Copyright � 2000, The Palm Beach Post. All
rights reserved.
                               This material may not be published, broadcast,
rewritten or
                                               distributed.


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