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Boston ‘spewed and spun’ rumors about Wynn casino, US says

An architectural rendering released by Wynn Resorts in January showed a daytime view of a redesign of its proposed Everett casino.Wynn Resorts via Associated Press

Federal prosecutors have blasted the city of Boston for what they termed its “vicious” lawsuit against the state Gaming Commission over a proposed casino in Everett, saying in a court filing this week that city officials had “spewed and spun” rumors into false allegations of serious misconduct by two retired State Police superior officers.

The sharply worded filing by the office of US Attorney Carmen M. Ortiz stands as a rebuke of Mayor Martin J. Walsh, who has pursued an aggressive legal strategy to halt the proposed $1.7 billion Wynn Resorts casino just over the city line in neighboring Everett.

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Federal prosecutors flatly deny in the seven-page filing any wrongdoing by the pair of retired officers, and attaches sworn statements from each to back up the denial.

In its lawsuits, the city alleges that the retired officers were working on behalf of Wynn in 2013 when they improperly gained access to confidential files at the state attorney general’s office concerning Charles A. Lightbody. At the time, that office was conducting a criminal investigation of Lightbody, a convicted felon who at one time owned an interest in the parcel of land in Everett now planned as the site of the casino.

“Without a shred of evidence, and despite having been warned that the ‘alleged incident’ never happened,” lawyers defending Lightbody and his codefendants “seized on a rumor spewed and spun by the City of Boston in a vicious civil lawsuit against the Massachusetts Gaming Commission,” the filing said.

In lending credence to the rumors, lawyers for Lightbody, his codefendants, and the city of Boston had unfairly questioned the integrity of state and federal investigators, the filing from the US Attorney’s Office said.

The filing asks a judge to dismiss an earlier motion, filed on behalf of Lightbody and his codefendants, that seeks a court order demanding that prosecutors turn over any evidence they have relating to the allegation of misconduct by the retired officers. Lightbody, Anthony Gattineri, and Dustin J. DeNunzio are charged by federal prosecutors with committing fraud by concealing Lightbody’s interest in the Everett land prior to the sale of the land to Wynn.

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The lawyers for Lightbody, Gattineri, and DeNunzio want the court order for any such evidence. If they can demonstrate that the retired officers working as private investigators for Wynn knew of Lightbody’s involvement, that could undercut the charges that Lightbody’s involvement in the land deal was fraudulently concealed, according to the court filings.

On July 7, the lawyers for the three defendants filed their request for the evidence and attached to their motion copies of subpoenas in the city of Boston’s lawsuit against the Gaming Commission. Those subpoenas contain the outline of the alleged misconduct by Joseph F. Flaherty, a State Police detective lieutenant who retired in 2005, and Stephen G. Matthews, a State Police lieutenant colonel who retired in 2012. The lawyers for Lightbody, Gattineri, and DeNunzio cited the subpoenas as the premise for their motion.

Assistant US Attorney Kristina E. Barclay replied to that motion on Wednesday. She said the lawyers in their filing had “parroted” the “baseless allegations” contained in the city of Boston’s subpoenas.

“Without any actual evidence” of wrongdoing and “without any regard for the truth,” the lawyers for Lightbody, Gattineri and DeNunzio had “transformed questions by the city of Boston in its civil lawsuit” into the premise of the lawyers’ motion, Barclay said.

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“Because there is simply no truth to the rumor and innuendo upon which the motion is entirely premise,” a judge should deny the request for a court order on evidence, Barclay wrote.

Lightbody, Gattineri, and DeNunzio allegedly concealed Lightbody’s stake in the 33-acre parcel on the Mystic River because, since he is a convicted felon, his participation in the land deal could have tainted the sale, based on state regulations that prohibit felons from profiting from the introduction of casinos into Massachusetts.

In a statement, Walsh’s office defended its approach to the civil suit.

“The city of Boston sharply disagrees with the Assistant US Attorney’s characterization regarding the merits of this case,” spokeswoman Bonnie McGilpin said in a statement.

The statement continued that it was “the city’s responsibility to fight to protect” the rights of Bostonians, including those who live in the neighborhood of Charlestown, which is closest to the planned site of the casino.

In a statement, Wynn officials said the federal prosecutors’ filing represented vindication.

“We are not surprised that the statements made by the city of Boston about our company have been proven false, as we have always maintained,” said Michael Weaver, senior vice president of communications for Wynn. “We hope the city will cease these efforts to stain our reputation.”

Boston’s lawsuit against the Gaming Commission alleges that it engaged in a pattern of making exceptions to the state casino law to benefit Wynn. Walsh had reached an agreement on a competing casino proposal for Suffolk Downs in Revere that would have brought at least $18 million a year to Boston. Walsh was unable to reach a similar accord with Wynn.

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The Gaming Commission, Walsh said, also made a major mistake in denying the residents of Charlestown the right to vote on whether to accept the casino, because it’s the neighborhood that would be most affected by the project.


Sean P. Murphy can be reached at sean.murphy@globe.com. Follow him on Twitter at @spmurphyboston