Firm backing off-reservation casino sues former CEO

Friday, January 8, 2010  

Empire Resorts, the company backing an off-reservation casino with the St. Regis Mohawk Tribe of New York, is suing former CEO Joseph Bernstein for extortion.

Empire claims Bernstein tried demanded a $500,000 bonus, a $500,000 consulting contract, vesting of his stock options and a press release touting his achievements. The company also says Bernstein disclosed privileged information about Empire's plans for the off-reservation casino and damaged its relationship with the tribe.

On December 31, Bernstein sent a 17-page complaint to the New York Racing and Wagering Board that discussed the off-reservation casino. He claims Kien Huat, a Malaysian company that bought a minority stake in Empire, was trying to negotiate a side deal with the tribe.

The Malaysian group has financed casinos for the Mashantucket Pequot Tribal Nation of Connecticut and the Seneca Nation of New York, and has agreed to build a casino for the Mashpee Wampanoag Tribe of Massachusetts.

Get the Story:
Empire Resorts Sues Former CEO, Citing Contract Breach (The Wall Street Journal 1/8)
Empire Resorts sues former CEO (The Middletown Times Herald-Record 1/8)

Earlier Story:
Former Empire Resorts CEO says his position was “hijacked” by two new majority shareholder reps (Mid-Hudson News Network, 1/4)