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Aug. 13, 2004

In Vegas, fear and insecurity cloud denials of terror threat

BY STEVE FRIESS
GLOBE CORRESPONDENT
LAS VEGAS -- Federal, state, and local officials here this week have angrily denounced internal FBI memos that suggested city leaders ignored or dismissed terrorism warnings last year in order to avoid scaring off visitors.

And yet, it's a measure of the enduring image of shady casino operators and compliant Sin City authorities that these allegations could gain such widespread credibility. Regardless of how mainstream and Wall Street-driven the gambling business has become, it remains well within the realm of possibility for many that if any city would hush terrorism threats to protect its bottom line, it's this one.

''There's still this whole image of Las Vegas as a place where all the strings are pulled, where everything is controlled, where there's a surveillance camera everywhere and there's a bunch of paranoid guys guarding their money -- and some of that is true," Las Vegas Review-Journal columnist and author John L. Smith said.

Indeed, the fear of that distrustful public image may explain why Las Vegas authorities have spent three days aggressively lambasting damaging internal FBI memos by Detroit Assistant US Attorney Keith Corbett leaked to the Associated Press. In them, Corbett complained FBI, Justice Department, and casino officials in Las Vegas all reacted with disinterest to Detroit FBI agent Paul George's efforts last year to show them alleged Al Qaeda surveillance videotapes featuring images of Las Vegas hotels.

The videotapes, one seized in Detroit and the other in Spain, contained images of the MGM Grand, Excalibur, and New York-New York resorts on the Las Vegas Strip. One tape also contained utterances referring to Khalid Sheik Mohammed, alleged mastermind of the Sept. 11, 2001, attacks. Other images on the tapes included Disneyland and the Golden Gate Bridge.

Corbett's memos allege that George could get just two local police officers to appear at a screening of the tapes and that casino officials did not show up because they said they feared liability in the event of an attack.

In a separate leak, the AP also obtained an e-mail written by another Detroit assistant US attorney, Richard Convertino, who claims he was told by Las Vegas assistant US attorney Sharon Lever that the Las Vegas mayor and sheriff both had said they fear a terrorism probe would have a ''deleterious effect on the Las Vegas tourism economy."

Convertino led the successful prosecution of a terror cell in Detroit but is now on leave from that case while an investigation proceeds into whether he withheld evidence from the defense during the trial.

Angry denials poured out from every corner of Las Vegas. Nevada's US Attorney, Daniel Bogden, in an unusual statement critical of another US attorney and FBI office, said Wednesday, ''No public official in the District of Nevada . . . has ever expressed concern to our office that information pertaining to public safety should not be released because of any potential impact to the local economy."

Las Vegas FBI special agent David Nanz insisted that the reason local authorities declined to view the videotapes was because ''everyone had already seen them." He also insisted that several agents attended George's screening and, far from treating him dismissively, officers escorted George on the Strip as he examined the hotels.

The FBI did not issue a public warning about the videotapes because the videotapes did not amount to a specific threat, Nanz said. In fact, Nanz questioned the contention that they were even terrorist surveillance material, noting, ''Any tourist could have shot that tape."

Particularly outraged was Mayor Oscar Goodman, who was implicated personally in Convertino's e-mail.

''This comes from some disgruntled prosecutor who is under siege for maybe having blown the convictions he got, trying to make me and my city the scapegoat," Goodman said. ''He's full of crap and now [Bogden's statements] show that he's full of crap."

The resort industry jumped in, too, with Las Vegas Convention and Visitors Authority executive director Rossi Ralenkotter saying, ''We want the world to know if we have information of a specific and credible threat, we'd share it with the public, even if people decided to stay home."

Indeed, to further demonstrate forthrightness, Governor Kenny Guinn held a press conference yesterday to announce the local FBI had earlier that day received seven videotapes that contained images of at least 34 sites in Las Vegas. Those tapes were found in the New York apartment of a Pakistani man, Kamran Shaikh, arrested in Charlotte, N.C., last month on immigration violations after he was questioned for filming buildings in Charlotte. FBI special agent Ellen Knowlton said that the tapes did not amount to a specific threat but that Guinn had called in the media to ''show that when we know something, we'll share it with you."

Still, Las Vegas's unique sensitivity to terrorism has been on display before, and frank talk of even the potential for an attack is barely tolerated.

Sheriff Bill Young learned that the hard way when he caught harsh criticism for a December 2002 speech in which he said: ''Being America's playground, we have to be a prime target for fundamentalists whose beliefs are radically different from ours. If we have a terrorist attack here, we're done as a community. We have only one industry -- importing people to come here to have a good time. And it's entirely predicated on people feeling safe and secure to come here."

Indeed, while the resort and local officials claim it's preposterous that they'd withhold terrorist information, some experts say that it would certainly damage Las Vegas to be frequently associated with terrorism warnings.

''Of course it would hurt the economy if Las Vegas, and only Las Vegas, was seen as a target of terrorism as opposed to Miami Beach or Seattle or Los Angeles or another destination," said Hal Rothman, history department chairman at University of Nevada Las Vegas. ''But the idea that one place is singled out is very, very dubious."

Just as dubious, others say, is the notion that Sin City could cover up something like a credible terrorism threat even if it wanted to do so.

''In this case, the conspiracy would have had to cut across all sorts of partisan lines and between different companies, I just think it's very, very unlikely that everyone could be under the spell of the 'What-Happens-Here-Stays-Here' Las Vegas," Smith said.

###

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