JVLV Holdings’ plan to purchase Mob Experience approved

The plan to purchase the Mob Experience at the Tropicana Las Vegas out of bankruptcy received court approval Monday, but litigation will likely continue on several fronts.

The deal calls for JVLV Holdings to pay $2.1 million for the assets of Murder Inc., the parent company of the Mafia-themed attraction. This money will pay some of the more than $20 million in debt the Mob Experience ran up since last March 1.

Mob Experience promoters after the Monday hearing talked about bringing in new managers and equipment to restore the attraction to full operation. They did not give a specific timetable, except to say it would come after the Feb. 14 opening of the Mob Museum downtown. The Mob Experience included an interactive video experience, but all of the hardware has been turned back to a leasing company.

JVLV's composition has not been set, attorneys in the case said, but will include businessman John Vipulis, an original investor in the attraction, and contractor M.J. Dean Construction Inc. Dean built the attraction and has filed a lien of $4.6 million for unpaid bills.

Also, Tropicana Las Vegas has agreed to defer collecting rent at least until the end of next year, giving Vipulis and Dean a chance to recover what they are owed first.

But Mafia Collection, an entity controlled by Mob Experience creator and former manager Jay Bloom, has pledged to stake a legal claim to the collection of mobster memorabilia that includes clothing, photos and jewelry once owned by the likes of Tony "The Ant" Spilotro and Meyer Lansky. These items are now on display at the Mob Experience -- the interactive part closed in September -- but draw only a couple of hundred people a day.

The attraction's financial and legal position deteriorated to the point where it filed for Chapter 11 protection on Oct. 17.

"At this point, the (Mob Experience buyer) is able to use the artifacts without paying for them," Mafia Collection attorney Robert Atkinson said. "This is an unjust situation."

But in court documents, attorneys for Murder Inc. wrote that even if the Mafia Collection has a valid title to the collection, Bloom bought or leased the items from various families with money "fraudulently transferred" from Murder Inc.

Further, the bankruptcy plan calls for pursuing other money and assets that Bloom allegedly siphoned from the company. Other actions against him are also under way in Clark County District Court.

Financial projections for the attraction show it will generate $5.5 million in revenues this year and produce an operating cash flow of $1.3 million. By cutting some expenses, Mob Experience promoters expect to boost cash flow to $1.6 million next year on almost exactly the same sales.

Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.