Washoe County engineer Paul Orphan lost $1.1 million gambling at John Ascuaga's Nugget in a year, most likely using county funds, according to county law enforcement officials who obtained a warrant for his arrest for embezzlement.


Detectives searching Orphan's home found receipts from teller machines used by gamblers, a business card for a concierge at the Nugget, a pass for reserved parking issued by the Nugget, Chris Isaac concert tickets from the Nugget and several Nugget chips. He also was a frequent Nugget spa visitor for massages.

Nugget CEO Michonne Ascuaga issued a statement saying the casino had no information that Orphan, a 20-year county employee, had any illegal source of funds.

"We would not knowingly participate in any activity that is illegal," she said.

Jerry Markling, enforcement chief for the Nevada Gaming Control Board, said gaming companies should report to the appropriate authorities when they believe anyone is gambling with illegal funds. But he said there is no specific regulation or law requiring that.

The Nugget refused to provide any gambling records until Washoe County sheriff's detectives obtained a warrant. The records showed Orphan lost $1.1 million.

In testimony to obtain the search warrant, Ben Hutchins, finance director for the county water resources department, said a co-worker said Orphan was a "huge high roller" at the Nugget and was "single-handedly keeping the Nugget afloat." The co-worker had a relative working at the Nugget.

Orphan has been charged with stealing at least $2.2 million from the county.

State Sen. Bill Raggio,

R-Reno, said any casino that knowingly allows illegal money to be used for gambling should be sanctioned by the Nevada Gaming Commission.

But he and others said they don't believe more casino regulations would work.

"How would they know?" Raggio said, if somebody is using stolen money to gamble. "Maybe somebody got an inheritance. An addiction is an addiction. Gambling is an addiction."

He also said public employees shouldn't be singled out.

"There are certain privacy rights," said Raggio, a lawyer and former district attorney. "Just to look at them differently, I don't think that's American."

State Assemblyman Bernie Anderson, D-Sparks, on judiciary and gaming regulation committees, said lawmakers rejected a bill requiring any reporting. He said Clark County casinos were concerned high rollers would stop coming if they thought they would be investigated.

Anderson also questioned whether the state should protect itself and not others.

"What about the spouses (of compulsive gamblers) who have lost their homes?" he asked.

State Assemblywoman Sheila Leslie, D-Reno, said a law requiring casinos to inform authorities of gamblers using money obtained from illegal means would be an extreme.

"How on earth would you prove they had knowledge of that? It's a sticky wicket," she said.

State Assemblyman Ty Cobb, R-Reno, said he would like to consider requiring casinos to "raise a red flag" with public employers whose employees are betting large sums of money.

State Assemblywoman Heidi Gansert, R-Reno, said she's not sure regulating the gaming industry is the answer.

"I'm not sure how they would identify public employees," she said. "But it's an interesting question to find out if it could have been discovered earlier.

"It's hard to believe he was able to take such large quantities right under the nose of the (water) division. How did that happen? It's inconceivable to me."

"I wouldn't want to put the onus on any particular industry to be the cop," said state Assemblyman David Bobzien, D-Reno. "I have a number of questions over the county's fiscal controls and how those were gotten around and why it took them so long to find this."
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