LAS VEGAS (CN) – The former director of the Law Vegas Mob Experience at the Tropicana Hotel & Casino lied about his debts to get a $3 million loan, then spent some of the money on himself, a lender claims in Clark County Court.
GC-Global sued Jay Bloom, Murder Inc. LLC, The Mafia Collection, and affiliates. It claims Jay Bloom falsely stated that the $3 million loan would cover all construction costs, though he knew the bill exceeded $4.5 million.
It also accuses Bloom of commingling funds and spending its loan money on himself, including a $50,000 down payment on a house and payments to unrelated companies he owned.
The Mafia-theme museum has scaled back its exhibit for an unspecified time as it makes improvements. Bloom stepped down in July, 4 months after the exhibit opened.
GC-Global claims Bloom withheld construction invoices until after the Mob Experience opened in March, “in the vain hope that ticket sales would bridge the gap.”
“However, this did not occur as sales were only 10 to 15 percent of written expectations.”
The exhibit has been the subject of several lawsuits.
In August, Bloom was accused of misstating the financial condition of the attraction and diverting money to himself. Bloom responded with a lawsuit of his own, claiming he was forced out.
Contractors have also sued, claiming they’re owed money for work.
The daughter of late Mafia boss Sam Giancana also sued in August, claiming the exhibit owes her $22,300 for her father’s personal effects, and another $286,500 for a 5-year consulting contract that was canceled.
Defendants in the most recent lawsuit include Order 66 Entertainment and Eagle Group Holdings.
GC-Global wants its money back and damages for breach of contract, fraud and unjust enrichment.
It is represented by James E. Smyth II with Kaempfer Crowell Renshaw Gronauer & Fiorentino.