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Casino Update: Palleiko Urges Gaming Commission to Disqualify Crossroads

By Michelle Murdock, Freelance Writer

In a new development in the case of Crossroads Massachusetts, the pending Milford casino project, David Nunes, President and CEO of Ajax Gaming Ventures announced in a letter to Milford Town Administrator Richard Villani, that he has been removed from his role as Manager of Crossroads Massachusetts.

“While I will continue to be the largest shareholder in Crossroads, I have had my authority and my title stripped by my investor partners and they wish to proceed in place of me,” wrote Nunes.

Under the guidelines established by the Massachusetts Gaming Commission (MGC), Nunes submitted his application, and the required $400,000 non-refundable deposit, just before the deadline of January 15, 2013 for Phase 1 of the application process. In early February, it was reported in the Boston Globe that Foxwoods Resort Casino had partnered with Nunes in his proposal to bring a resort style casino to Milford. But now, Nunes says that he no longer has any authority to act on behalf of Crossroads.

In his letter to the town he says, “I have shed any faith in the project given that the investors and Foxwoods have not invested the time to get to know the people of Milford.”

Following the receipt of a copy of Nunes’ letter, Board of Selectmen Chairman Ben Palleiko has written a letter to the Massachusetts Gaming Commission Chairman Steven Crosby suggesting that the Crossroads application be disqualified.

“Mr. Nunes’ letter raises several important issues for the Commission to consider, in that it reflects one of two possibilities, either of which should rule out the application from further consideration,” wrote Palleiko.

According to Palleiko, Nunes’ removal as manager may be a deliberate ploy by Foxwoods Resorts & Casinos, Inc. (FCX) to take control of the project in spite of the fact that Foxwoods was only added to the Crossroads application after the January 15 deadline due to its ongoing renegotiation of debt related to its existing casino in Ledyard, CT.

“The Town’s belief is that Foxwoods’ addition to the Crossroads Massachusetts application was always inappropriate and should disqualify the application by itself,” reads Palleiko’ s letter. “If Foxwoods is now acting to take control of this project proposal, further questions are raised as to whether this entire application was engineered by Foxwoods in order to allow it to circumvent the Commission’s legal deadline so as to be able to shed sufficient debt to qualify for a Determination of Suitability.”

According to the MGC website, each applicant for a gaming license, as well as their qualifiers, will undergo extensive background investigations to ensure that they meet high standards for good character, honesty, integrity and financial suitability. It is estimated that it may take up to six months to complete the background investigations and the target date for completion is June 2013.

“Hopkinton believes that Mr. Nunes’ ouster should serve as the last straw for the Crossroads Massachusetts casino proposal,” wrote Palleiko. “The MGC should not have greater faith in this proposal that the individual who brought it forth for the past four years. The mysterious circumstances surrounding his abrupt replacement only reinforce the belief that the Crossroads Massachusetts application should be immediately disqualified from further consideration.”