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Tuesday, June 18, 2024 | Back issues
Courthouse News Service Courthouse News Service

SEC Claims Quick Shuffle on Gaming Shares

LAS VEGAS (CN) - A gaming executive tipped off a friend who made $237,000 by trading on the inside information about Shuffle Master, the SEC says in Federal Court. The Shuffle Master vice president allegedly tipped off a musical producer who had given him tickets to hot shows in New York and Las Vegas.

The SEC accused R. Brooke Dunne, Shuffle Master's former senior vice president, of giving a "gift of confidential information" to Nicholas Howey, a Maryland musical producer, that "allowed Howey to turn a losing investment ... into a profitable one."

The tip involved a possible deal between Shuffle Master and International Game Technology, involving a Shuffle Master product called E-Tables.

"Project Blue Sky" never panned out, and no announcement was made.

But Howey invested after learning of the plans from Dunn, the SEC says, and when he learned the deal wasn't going through, he dumped his shares.

The two men met in the '90s and became friends, and Howey used his connections in the entertainment industry to give Dunn free tickets to hard-to-get shows in New York and Las Vegas, the SEC says.

Shuffle Master makes card-shufflers and other products for casinos.

The SEC seeks disgorgement of "all ill-gotten gains," and civil penalties. It also wants Dunne barred from serving as an officer or director of any public company.

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