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Thursday, July 8, 2004

A mystery player in a bid for slots

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Supporters of a proposal to set up a gambling complex on New York Avenue NE have identified Idaho financier Robert L. Newell as the key financial backer of the $550 million project.

But Mr. Newell says he is the "coordinator" of a group of investors, whom he declined to identify.

Mr. Newell, 43, has a history of troubled business dealings, including bankruptcies, a government censure and ties to a gambling financier who has been denied a license to run a Las Vegas casino.

Pedro Alfonso, head of the District-based telecommunications firm Dynamic Concepts Inc., and his attorney, former D.C. Council member John Ray, have said little about Mr. Newell's role in their efforts to bring to the District video lottery terminals, which are similar to slot machines. Mr. Alfonso and Mr. Ray have said that Mr. Newell and Mr. Alfonso are the only investors in the project.

Mr. Alfonso and Mr. Ray could not be reached for comment yesterday.

Tuesday, Mr. Alfonso delivered to the D.C. Board of Elections and Ethics petitions bearing more than 50,000 signatures to put the initiative on the November ballot. The board has 30 days to verify that the signatures are those of registered D.C. voters.

Mr. Newell's name does not appear on any documents regarding the gambling initiative because, under D.C. law, such a proposal must be put forward by a city resident, said Bill O'Field, spokesman for the board.

The names on the documents are those of Mr. Alfonso and Vicky Wilcher, treasurer of the group supporting the proposal, according to the D.C. Office of Campaign Finance, the investigative arm of the ethics board.

According to official records from Spokane, Wash., Mr. Newell was accused of persuading unsophisticated investors to put their life savings into questionable deals that failed.

In 1997, an elderly Spokane couple filed a lawsuit against several people and companies -- including Mr. Newell, a company he managed and another company for which he was a corporate officer.

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