Troubled Mob Exhibit Files for Chapter 11

LAS VEGAS (CN) - Murder Inc., the company that ran the Mob Experience inside the Tropicana Hotel & Casino, has filed for Chapter 11 bankruptcy protection after being hit with a string of lawsuits even before the exhibit opened last year.

In its bankruptcy filing, Murder Inc. listed creditors owed amounts ranging from $272,000 to $4.6 million; the largest debt is to MJ Dean Construction. The contractor has already sued, alleging nonpayment, and placed a mechanic's lien on the property.

The Mafia-theme museum recently announced that it was scaling back its exhibit for an unspecified time to make improvements.

But officials now say the 150 visitors a day isn't enough to keep the place open, according to Las Vegas media reports.

The exhibit has been the subject of several lawsuits.

The most recent was brought this week by the marketing agency BTMC LLC, which claims Murder Inc. failed to pay $38,500 for its public relations services.

Earlier this month, the former exhibit's former director, Jay Bloom, was sued by GC-Global, which claimed Bloom lied about his debts to secure a $3 million loan, then spent the money on himself. Bloom stepped down in July, 4 months after the exhibit opened.

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 had been 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.

The most recent complaint against the exhibit, filed Tuesday in Clark County Court, seeks money for breach of contract.

It is represented by Alisa Nave with Griffin Rowe & Nave.

Here are the top creditors in the bankruptcy filing. "U" means the debt is unsecured.

Trade Show Fabrications $752,142.38 (U)

Bombard Electric $701,021.50 (U)

Plain Joe Studios $375,946.16 (U)

Crestridge Holdings $370,850 (U)

Joseph Giorgianni $357,360 (U)

Video Equipment Rentals $310,500 (U)

Tom Jones Jr. $290,000 (U)

Lamar Central Outdoor LLC $272,000 (U)

Lindenmuth & Associates PSP&T $250,000 (U)

These debts are listed as partly secured:

MJ Dean Construction Inc. $4,640,732

Strategic Funding Source Inc. $4,092,171.04

GC-Global Capital Corp. $2,718,653.52

JVLV Holdings LLC $2,250,000

Benson Riesman $500,000

Buller Family Holdings LLC $500,000

Logan Family Trust $490,000

Ken Kefalas $250,000

Bombard Family Trust $250,000

Terry Kroll $250,000

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit