In re D.I. Operating Co., 240 F. Supp. 672 (D. Nev. 1965)

United States District Court, District of Nevada, Misc. No. 27, Judge Thompson, March 18, 1965. Revenue Agent John E. Shannon was assigned to investigate the income tax returns of D. I. Operating Company, “a corporation, which operated the gaming casino at the Desert Inn Hotel in Las Vegas, Nevada.” On September 28, 1961 he issued a summons to the company and to Allard Roen, its secretary, for cash sheets, pit credit cards, game credit cards, daily records of debits and credits to customers’ I.O.U.s, casino credit cards and credit slips for the fiscal years ending November 1956 to November 1960.

Roen answered that some cards were available only for certain months and that no record of debit and credit entries to customers’ accounts was available. The district court ordered compliance in 1961, the Ninth Circuit reversed and remanded in 1963 for findings on relevance, and after hearings on October 5 and 6, 1964 the court again ordered compliance, with minor limits. This opinion finds the company and Roen in civil contempt for not producing the records and assesses $7,950 against them.

The opinion is a tax-enforcement ruling. It does not allege hidden ownership or skimming. It is filed as a federal record of the Desert Inn’s operating company in 1961 to 1965. The Tenth Circuit’s account of the Desert Inn’s officers in another case is on the page for Kolod v. United States.