FOR IMMEDIATE RELEASE                                         TAX
FRIDAY, JANUARY 24, 1997                           (202) 616-2765
                                               TDD (202) 514-1888

       CASINO INDUSTRY FIGURE, SON INDICTED ON TAX CHARGES

     WASHINGTON, D.C. -- A casino industry figure and his son
were indicted today by a federal grand jury in St. Paul,
Minnesota for failing to pay taxes and obstructing the Internal
Revenue Service, the Justice Department announced. 

     The 13-count indictment charged Jerrold L. Polinsky, a
resident of Atlantic City, with tax evasion, securities fraud,
obstruction of the IRS, wire fraud and conspiracy to defraud the
United States.  His son, Gary L. Polinsky, of Minneapolis, was
charged with conspiring to defraud the United States, obstruction
of the IRS, and failure to file income tax returns.

     According to the indictment, Jerrold Polinsky, worked as a
"consultant" for International Gaming Management, Inc., (IGM), a
Minnesota-based, publicly-traded company which sold and leased
gambling devices, such as slot machines and video games of
chance.  He worked there from 1987 until 1994, when search
warrants were executed at IGM's offices and several other
locations.  

     The indictment alleges that Jerrold Polinsky exercised
considerable influence and control over the operation of IGM,
controlled large amounts of IGM stock and by 1994, claimed that
he had more than $12 million in assets.  It also alleges that
1981 was the last year for which Jerrold Polinsky filed any
federal income tax returns.  He is charged with attempting to
evade tax on more than $1.1 million of taxable income for the
calendar years 1991 through 1993, by, among other things, using
nominee names and IGM accounts to hold and conceal his personal
assets.  

     Jerrold Polinsky also is charged with evading payment of an
earlier tax liability and with obstructing the IRS by making
false statements to IRS employees regarding his assets and
income.  In addition, Jerrold Polinsky is charged with two counts
of securities fraud.  The indictment alleges that Jerrold
Polinsky obtained $600,000 by selling non-existent IGM stock
options in 1993 and that he made false statements in connection
with the sale of 15,000 shares of IGM stock that he maintained in
a nominee name.

     Loretta C. Argrett, Assistant Attorney General for the Tax
Division, said, "the Tax Division's priority is to ensure that
individuals who attempt to evade their tax obligations by
obstructing the IRS are prosecuted vigorously."  

     Jerrold Polinsky was previously indicted in a separate case
in Marquette, Michigan, arising out of allegations that he made
unlawful payments to the Tribal Chairman of the Keweenaw Bay
Indian Community in connection with video gaming machines leased
by IGM.  According to the Michigan indictment, which was
generated by the Minnesota investigation, the payments were made
through "Spectrum Communications," a company which today's
indictment also alleges he used to evade paying taxes.  Jerrold
Polinsky is awaiting trial on those charges. 
 
     Jerrold Polinsky and Gary Polinsky are charged with
conspiring to obstruct the efforts of the IRS to collect a tax
liability dating back to Gary Polinsky's 1981 income tax return. 
The indictment asserts that Gary Polinsky was paid through
Spectrum Communications to circumvent IRS attempts to levy his
IGM wages in 1991 and 1992.
  
     Gary Polinsky also is charged with failing to file personal
income tax returns for 1991, 1992, and 1993, and with obstructing
the IRS by making false statements to IRS employees regarding the
filing of his returns.

     "The Minnesota investigation of IGM has been a fruitful
one," said David Lillehaug, U.S. Attorney in Minnesota. 
"Companies and individuals in the gambling industry must be held
to the requirements of all federal laws."    

     Tax evasion, conspiracy, wire fraud and securities fraud,
are all felonies and carry a maximum penalty of five years in
jail plus a fine of $250,000.  Obstruction of the IRS also is a
felony and carries a maximum penalty of three years in jail plus
a $250,000 fine.  Failure to file income tax returns is a
misdemeanor and carries a maximum penalty of one year in jail and
a $100,000 fine.  The public is reminded that an indictment is
merely an accusation and that the defendants are presumed
innocent unless and until proven guilty in a court of law.

     This case is the result of a joint investigation by the
Internal Revenue Service (Criminal Investigation Division), the
Federal Bureau of Investigation, and the Minnesota Department of
Public Safety (Gambling Enforcement Division).  Agents from the
U.S. Postal Service and the Department of Interior also
participated in the investigation.  

     The prosecution is being handled by Trial Attorneys  Andrew
H. Kahl and Christopher J. Romano of the Tax Division, in
cooperation with the U.S. Attorney for the District of Minnesota.
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