Whistleblower Comes Forward - Did Alex Cordova & Jon Gray Conspire To Embezzle from the Investors?
Day 49: The shutdown has caused the spotlight to focus on certain questionable business dealings. As workers become unemployed, their grievances are being aired. Jon Gray was hired by Frank Feritta III & his younger brother Lorenzo who each control a 29% stake in Stations Casino. Together, they control the majority of the voting shares. As a side note, the Frank Fertitta was the former CEO of the Ultimate Fighting Championships which recently sold and HQ'd in Las Vegas.
Frank III & Lorenzo worked for their father, Frank Fertitta Jr. at Stations Casinos. The brothers took Stations Casinos public in a $294 million IPO (initial public offering) management-led LBO (leveraged buy-out) in 2007. By 2009, Stations Casino had declared Chapter 11 Bankruptcy. What happened to the $294 million they raised from the IPO?
They restructured Stations Casinos and emerged from bankruptcy in June 2011 with the new ownership structure allowing the Ferittas to retain full control of the company, So in 2015, the Fertittas brother were up to their shenanigans again: let's do another IPO. Thats right. The Fertittas brothers convinced the SEC to allow them to take Red Rock Resorts Inc public with an IPO that raised a startling $534 million. Remember - this company had just come out of bankruptcy after blowing a $300 million (1/3 of a billion) of investor money. What were their plans with a new IPO?
Frank and Lorenzo Feritta are supporters of Donald Trump. They both donated over $1 million each to Trump's 2016 election bid. In 2016, Frank & Lorenzo Fertittas were allowed to purchase the Palms Casino & Resort for $313 million from George Maloof.
In 2018, the Lorenzo brothers began a $620 million renovation. That's when Frank & Lorenzo lured Jon Gray away from a brand management position at Nike, Inc in Portland Oregon. By November 2019, the three of them- Frank, Lorenzo & Jon Gray- had burned through $1 billion of shareholder money. Frank was about to request another $500 million after the massive KAOS Nightclub went belly up within 5 days but then the corona virus scare hit.
KAOS Nightclub was the showcase of the newly remodeled Palms Casino. The big grand reopening was to occur on Oct 31, 2019 with Cardi B., Skrillex, MArtshmellow DJ Kaskade and others. Instead, KAOS closed within 5 days of reopening. What? How did they miscalculate so badly?
How did these guys - Lorenzo, Frank & Jon Gray lose nearly $1 billion of shareholder money between 2016 and 2019? They are gangsters. They swindled the SEC & the NASDAQ shareholders; twice.
KAOS closing is the tip of the iceberg. Alex Cordova from Wynn Nightlife is said to have been conspiring with Jon Gray to skim millions of dollars off the top of a botched DJ Contract with Marshmello who inked an unprecedented $65 million contract with Jon Gray for 2 years. That's insane. But Jon & Alex needed someone to take the bait. The $65 million was a cover for what was about to happen next.
Before ever performing, Marshmello declared breach of contract. He wanted $27 million. He got it. What about the other DJs? Get in line with Kaskade who is currently suing the Palms. But how did the club go out of business when it was sold out?
Jon Gray was embezzling at the door. Jon Gray turned away ticket holders. He instructed them to get refund. Meanwhile, if you paid Jon Gray in cash, he gave you a front row seat. When the owners of the seats appeared, he told them them to get a refund from the Palms Cashier - unless you bribed Jon Gray at the door.
What happened to Alex Cordova? Last heard, Alex escaped extradition in Ibiza. Jon Gray abruptly resign in October 2019l; only after his wife Ruth through all of his belongings into the front yard. Yep - divorce city for Jon Gray.
Jedi Rich is a former CEO who transformed from a banker into a modern day independent music & film maker.
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*NOTICE: Ideas and opinions are meant to provoke and initiate conversation