Government May Reach a Deal on Card Club

The federal government appears on the verge of finally unloading its “bizarre” stake in the much-troubled Bicycle card club in Bell Gardens, lawyers negotiating the deal said Wednesday.

To the relief of federal custodians, the U.S. arm of the Ladbroke Group of Britain has made an offer to add the club to its string of worldwide gambling enterprises, the lawyers said.

“We have a sincere desire in acquiring an interest,” said John Ford, vice president and general counsel for Ladbroke Racing Corp., the U.S. arm of the parent firm, known mainly for its ubiquitous betting parlors in Britain and hotel properties in several countries.

Ford would not divulge the company’s offer or other details.

Ladbroke, with gross sales last year of more than $7 billion, already owns the Golden Gate Fields racetrack in Northern California and a nearby card club, as well as tracks in two other states and off-track betting parlors in Pennsylvania.

The federal government became a part owner and full operator of the Bicycle Club, one of the largest card clubs in California, in 1990 after breaking up a Florida drug and money-laundering ring that helped finance construction of the club.

Since then, controversy has dogged the club, with the conviction of one of its Asian games managers for strong-arm extortion and loan-sharking, and allegations of shady election campaign practices and skimming against George Hardie, another part owner.

Furthermore, the state took action in April seeking revocation of the gaming license held by the former federal trustee managing the club, Harry J. Richard. Richard later resigned by mutual consent and was replaced.

During congressional hearings into the club’s troubles last March, Sen. William V. Roth Jr. (R-Del.) called the government’s stewardship of the Bicycle Club “one of the most bizarre stories” of government waste, fraud and mismanagement ever to have come before his subcommittee.

The government has been trying to sever ties with the club for years. “We don’t have a particular interest in owning or operating this type of business,” said Paul Fishman, an associate deputy attorney general in Washington who is helping negotiate the sale.

But he said it would have been “grossly irresponsible for the government to walk away from an asset that was purchased with drug money simply because the drug dealer was clever enough to invest it in a business that would be difficult for us to seize and manage.”

Ford, the Ladbroke lawyer, said details of the sale will be made known later this month.