Merlinos win right to work on casinos

ATLANTIC CITY - Joseph N. Merlino, his mother Phyllis and the construction company they own were granted the right to work on casino construction projects Wednesday by the New Jersey Casino Control Commission.

The unanimous ruling by the five-member panel capped a contentious and often acrimonious licensing hearing and ended a 20-year fight by the Merlinos to shed the allegation that they have ties to organized crime.

In approving casino service industry licenses for the Merlinos and their firm, Bayshore Rebar of Pleasantville, the commission ratified a hearing examiner's recommendation and rejected a strongly worded list of objections filed by the New Jersey Division of Gaming Enforcement.

Phyllis Merlino said she was "relieved and happy" by the decision Wednesday.

"It's finally over," she said.

Her son added: "We're a hard-working family."

The Merlinos and their company were denied a casino service industry license in 1989 and again in 1997 because of suspected mob connections.

Joseph N. Merlino is the cousin of jailed mob boss Joseph S. "Skinny Joey" Merlino and the son of the late Lawrence "Yogi" Merlino, a mob capo.

Phyllis Merlino is "Skinny Joey"'s aunt and the ex-wife of Lawrence Merlino.

During 14 days of testimony during a licensing hearing that stretched over two months, the DGE argued the Merlinos had ties to organized crime figures and should not be permitted to work in the casino industry.

Michael C. Epps, who made the motion to grant the license Wednesday, said the DGE had offered "dated surveillance reports" and "evidence that was stale and credibly refuted."

Josh Lichtblau, the DGE director, attended the hearing Wednesday and declined to comment afterward.

William Sommeling, a commission member who served as the hearing examiner, filed a report on March 31 which found the DGE's allegations were without merit. Sommeling said he accepted the Merlino's assertions that they had broken all ties with family members linked to the mob and had made efforts to sever any other relationships that might prove objectionable.

In rejecting the DGE's assertions, Sommeling said he found the evidence offered by prosecutors "unreliable, uncorroborated and, in some instances, demonstrably false."

A war of words between the Commission hearing examiner and the DGE continued when prosecutors filed a list of exceptions to Sommeling's ruling, challenging both his fairness and his integrity.

The Merlinos' victory may have little immediate impact. With the economy struggling, there is little in the way of casino construction in Atlantic City and, in fact, three casino operators have filed or are close to filing for bankruptcy.