The State - News from Jan. 28, 1986

Lawyers for the McClatchy Newspapers said they have Internal Revenue Service documents confirming that the IRS suspected skimming at a casino once controlled by the family of Sen. Paul Laxalt (R-Nev.). Laxalt has filed a $250-million libel suit against McClatchy in response to a 1983 article in the Sacramento Bee that said the IRS had evidence of a skimming operation--illegal diversion of profits before taxes--at the Ormsby House Casino in Carson City while under Laxalt family control in the 1970s. McClatchy attorneys filed a memorandum in federal court in Reno urging extension of the discovery period in the libel case on grounds that it would probably be necessary to sue the IRS to obtain full, unedited versions of the skimming reports.