The Daily Item, Sunbury, PA

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November 2, 2008

Gaming official to resign Dec. 5

ALLENTOWN (AP) _ The director of the investigative arm of the Pennsylvania Gaming Control Board has announced his resignation.

David Kwait will step down as director of the board's Bureau of Investigations and Enforcement on Dec. 5. He didn't give a reason for stepping down but said in a prepared statement that heading the BIE was "challenging, exciting and difficult."

Kwait is a 30-year FBI veteran who served as chief of criminal investigations for the state attorney general before becoming the head of BIE.

"David's law enforcement background helped define our strategic priorities and was essential as we built a system to not only protect the public's interests and instill integrity into Pennsylvania's new gaming industry, but to manage a tremendous volume of investigations required to move the Gaming Act from a law into reality," gaming board Chairwoman Mary DiGiacomo Colins told The Morning Call of Allentown.

Kwait's time with the BIE was marked by controversy over the licensing approvals of Mount Airy Casino Resort owner Louis DeNaples and former Majestic Star owner Don Barden.

DeNaples was charged with perjury after a grand jury found he lied to the gaming board about his ties to organized crime. His license was suspended and a trustee was appointed to oversee Mount Airy.

Agents investigating Barden found he had more than $11 million in gambling debts and had reported personal tax losses of up to $7.9 million for five years. However, the board approved Barden's license to operate the Majestic Star casino in Pittsburgh.

Barden lost majority control of the casino in July to an investment firm co-founded by Chicago billionaire Neil Bluhm.

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