A U.S. federal judge in Baton Rouge is contemplating whether to throw out a lawsuit seeking the profits made by a former casino owner who bribed former Governor Edwin Edwards.
The Louisiana state attorney general is suing former Treasure Chest Casino owner Robert Guidry, a government witness whose testimony helped convict Edwards on federal charges of shaking down riverboat casino owners. Edwards is serving a 10-year prison sentence.
Joel Gooch, a lawyer for the attorney general’s office, argued in court that even though the state could not point to specific dollar losses, Goudrey should compensate the state for the loss of “good government.”
“Louisiana is trying to attract industry and trying to curb the outward migration of our well-educated youth,” Gooch said. “Those actions that tarnish the image of this state … lead to significant damage, and this state can’t tolerate it.”
Sounds like a long bow to draw.
Guidry’s lawyer, Arthur Lemann, countered that the state suffered no financial loss because Treasure Chest paid the same tax proceeds that any other boat at the site would have paid. He likened the civil lawsuit to a city suing motorists for damages when they break traffic laws.
Guidry has asked for the suit to be dismissed, or for the federal government to pay any resulting damages, saying his federal plea agreement capped his fines at $3.5 million.
After hearing these arguments yesterday, U.S. District Judge James Brady said he would issue a written ruling later.
Guidry owned the Treasure Chest Casino in Kenner from August 1993 through October 1997. He made $US30 million from the casino while he owned it, and sold the boat for $72 million to Boyd Gaming Corp.
During Edwards's trial, Guidry testified that he agreed to pay the former governor and his associates $100,000 a month in exchange for a casino license. Which goes to show how much money there is to be made in the casino game.