3 charged with theft of list from Tropicana

A Borgata casino executive and two others who had worked with him while he was employed at a rival casino were indicted today, accused of stealing a customer database list from their former employer, the Tropicana Hotel & Casino in Atlantic City.

The list - which contained the names, addresses, phone numbers and spending levels of more than 20,000 of the Tropicana's best customers - had an assessed value of more than $108 million, according to the New Jersey Attorney General's Office, which announced the charges.

Those charged with second-degree counts of theft by unlawful taking, computer theft, and conspiracy included John Conklin, 47, of Galloway Township, who now is vice president of relationship marketing at the Borgata Hotel & Casino, Atlantic City's top-grossing gambling establishment; Justin Litterelle, 26, of Las Vegas; and James DiMarco, 59, of Ocean City.

Conklin and Litterelle also were charged with second-degree receiving stolen property, and DiMarco was charged with second-degree attempted receiving stolen property. Conklin also was charged with witness tampering, a third-degree offense, for allegedly having his attorney get Litterelle to sign a false affidavit.

"We charge that these marketers stole one of the most valuable assets of the casino, namely detailed contact information and ratings for its top-level players," Attorney General Anne Milgram said in a statement today. "This type of corporate espionage and theft involving proprietary information is a very serious crime."

Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum sentence of five years in prison and a $15,000 fine.

"We will put up a vigorous defense against these charges," said John Donnelly of Atlantic City, who was representing Conklin.

The charges stemmed from an investigation begun in August by Paul Spirit, a detective with the New Jersey State Police Casino Gaming Bureau.

According to Spirit's report, the three defendants all were working at the Tropicana and were seeking employment at other casinos. Conklin allegedly told Litterelle to download a list of top-level player names from the Tropicana computer database to use as "future leverage" to bring potential patrons with them after leaving the Tropicana.

Litterelle allegedly downloaded a list of more than 20,300 casino patrons onto three compact discs, according to the report.

By March 2007, when Conklin had become vice president of relationship marketing at the Borgata, he allegedly telephoned Litterelle, who had become national marketing manager at the Bellagio casino in Las Vegas.

Conklin allegedly asked Litterelle to send DiMarco the player list because DiMarco had lost his job at the Tropicana. The report said Litterelle purportedly e-mailed the list to Conklin and arranged with DiMarco to send him a paper copy of the list.

The Tropicana and the Borgata were alerted and were cooperating with the state's investigation.

Both casinos declined to comment on the charges today.

The charges come at a particularly sensitive time. The Tropicana has lost substantial business because its former owner had its casino license revoked in December, and it has been trying to regroup.

A longtime industry observer said "rated-player" lists "are the lifeblood of the casino operation."

"These have the contact information, as well as the preferences, and in many cases the gambling histories of the customers who are providing the casinos with their most profitable players," said Joe Weinert, senior vice president at Spectrum Gaming Group L.L.C., of Linwood, N.J. "Many people in player development go from casino to casino. The lists are supposed to stay behind."