Michonne Ascuaga abruptly resigned from the Nevada Gaming Commission on February 12, days after Nevada newspapers reported the Sparks Nugget is the target of a federal money laundering probe.
Nevada Governor Brian Sandoval appointed Ascuaga to the Gaming Commission last year, but a spokeswoman said he was not aware of the federal investigation until newspapers reported it on February 10.
Local newspapers learned of the federal probe after Wolfhound Holdings, which helped buy the Sparks Nugget in 2013, filed a complaint in Washoe County District Court that provided details of the federal money laundering probe at the Sparks Nugget. Wolfhound Holdings claims the Ascuaga family concealed the federal investigation when selling the casino.
Ascuaga was CEO of the Sparks Nugget for 16 years, before her family sold it to Wolfhound Holdings and Golden Gaming and Hospitality. Her father, John Ascuaga, founded the hotel and casino in 1955 and is considered a Nevada gaming pioneer.
In her resignation letter, she said she never was targeted by the federal probe, and Wolfhound Holdings her family fully informed Wolfhound Holdings of the investigation before it the investment group agreed to buy the casino.
Although Wolfhound Holdings claims it was unaware of the federal investigation, the money laundering probe has not scared off a potential buyer.
Marnell Gaming on February 10 announced it has reached a tentative agreement to buy the casino for an undisclosed sum from owners Wolfhound Holdings and Golden Gaming.
Marnell currently owns the Colorado Belle and the Edgewater casinos in Laughlin, and wants to expand into the Northern Nevada gaming market, which mostly is driven by tourism in nearby Lake Tahoe and Reno.
While terms of the pending sale were not disclosed, the Nevada Gaming Commission will review the sale and is expected to rule on it during the second quarter of 2016.
