“Principal payments are irregular and interest payments cannot be reconciled to loan balances. All other business loans made by Simms appear to be well documented. The investigation failed to disclose a reason why the business loans between Simms and Glick lack documentation and accountability.
“In a September 22, 2000, interview, Simms stated he would advance funds to Glick by check and wire transfers. Simms would make the checks out pursuant to Glick’s instructions. For wire transfers, Simms stated, ‘I would call Bank of America and tell them they will be receiving a phone call from Mr. Glick and the amount, and then it was okay to wire it wherever he said to wire it.’
“The investigation disclosed that in 1995 Simms authorized monthly wire transfers to accounts controlled by Glick totaling $2,273,051.29, and Simms received monthly wire transfers from accounts controlled by Glick totaling $2,573,051.29. Simms would liquidate Treasury Bills held at Bank of America at a loss, and the proceeds would be advanced to Glick. The documentation submitted by Simms regarding Simms’ loans to Glick did not disclose these monthly transactions. The transactions were contained in tax files held on Simms’s behalf by his accountants. Other than a handwritten note by Simms noting the loss on the sale of these ‘bonds’ and that he was loaning Glick approximately $250,000 each month, no documentation exists to support the loans from Simms to Glick. When shown the documents evidencing the cash transactions, Glick’s accountant Thomas Reid, CPA, indicated he did not know anything about the monthly wire transfers between Simms and Glick.
“Mr. Simms outlined his relationship with Mr. Allen R. Glick as follows: Mr. Simms met Mr. Glick in the 1970s. His cousin, Ron Hecker, introduced them. In 1985 Mr. Simms started to socialize with Mr. Glick and his family.
“Around this time, Mr. Simms learned Mr. Glick had owned some hotels and casinos in Las Vegas during the 1970s. Mr. Simms learned that Mr. Glick owned and sold the Hacienda Hotel, Fremont Hotel, Marina Hotel, and the Stardust Hotel. Mr. Simms also learned Mr. Glick was to be a government witness in a trial in Kansas City against several organized crime figures. Simms’s cousin, Ron Heckler [sic], continued to tell Simms that Glick was not an organized-crime figure and had been victimized by the Mafia. ‘More recent magazine articles and a book about the trial seemed to confirm my cousin’s belief that Mr. Glick was a victim of the Mafia.’
“After the trial, Mr. Simms and his cousin were among the few friends Mr. Glick still had in the area. According to Mr. Simms, the book Casino, published in the mid-1990s, was supposed to be the true story about Mr. Glick’s involvement in the hotels and the infiltration of the Mafia into the hotels. Even though the book and the trial ‘tainted’ Mr. Glick, Simms remained friends with Mr. Glick.
“In his affidavit, Mr. Simms stated the book Casino indicated Mr. Glick did not know the Teamsters Pension fund was controlled by organized crime. The book actually stated that Mr. Glick knew the person arranging the loans, Frank Balistrieri, was the organized-crime boss of Milwaukee.
“During Mr. Simms’s interview, conducted on September 22, 2000, Mr. Simms stated he no longer had a relationship with Mr. Glick. He stated he ceased the relationship about ‘a week or two ago.’ ‘I told him that based upon things that have been put in the newspapers recently, I thought it would be best for myself and for him if we didn’t continue our friendship, even though I still cared about him, because I’m in the gaming business and because of his articles — the articles in the paper.’
“Corporate Manager Connie Clapper and Investigator Callaghan interviewed Mr. Allen Glick on October 24, 2000, in La Jolla, California. Mr. Glick stated that Mr. Simms was a very dear friend and that they spoke on the telephone every day for the past 15 to 17 years. Mr. Glick did not indicate his relationship with Mr. Simms had ceased as Mr. Simms stated a month before.
“Mr. Glick also stated that he did not enjoy playing golf, but because Simms did, Glick would often play golf with Simms because he was a ‘dear friend.’
“Mr. Simms attempted to describe himself as a naive businessman. Even though he founded a bank and sat on the finance committee, Mr. Simms stated he was not aware of the rules regulating the reporting of certain financial transactions. Specifically, he stated he did not know that money transactions at a bank of $10,000 or above had to be reported. To the contrary, Mr. Glick described Mr. Simms as a very astute, detail-oriented, hard-boiled businessman. Mr. Glick also stated he would not want to be on the wrong side of the table from Mr. Simms. He added Mr. Simms always makes sure he gets repaid.
“In November 1985, Alan Robbins informed Jeremy Simms that he could acquire a franchise for a luxury automobile dealership that Honda planned to open under the name of Acura. Robbins indicated he had connections with Honda, having performed favors for Honda as a California State Senator in connection with legislation regarding Honda’s all-terrain vehicles, and in turn Robbins would receive the rights to an Acura dealership franchise. Robbins offered Simms a 50 percent interest if Simms would act as a front man to the Acura dealership.
“It should be noted that Honda was awarding Acura dealerships only to existing owners of Honda dealerships. Neither Robbins nor Simms held an ownership interest in a Honda dealership. Robbins told Simms that if they could find an existing Honda dealer who was not interested in an Acura franchise, Honda would turn the Acura franchise over to the Honda dealership, acting as a straw man for Robbins and Simms, who would then transfer the Acura franchise over to Robbins and Simms. In consideration for the inside deal, Robbins would have to purchase a new Acura Legend for a Paul Priolo. Paul Priolo was a lobbyist for Honda.