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MARK SCOLFORO Associated Press Writer

Editor's Note

** FILE ** Mount Airy Casino Resort owner Louis DeNaples, right, stands with The Rev. Joseph Sica before testifying in front of the Pennsylvania Gaming Control Board in Harrisburg, Pa., in this Dec. 5, 2006 file photo. Authorities Wednesday, Jan. 30, 2008 announced that they have charged Pennsylvania casino owner DeNaples with perjury and have accused him of lying about his ties to organized crime. (AP Photo/Carolyn Kaster, File)

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Details continue to develop today as perjury charges against Scranton businessman Louis DeNaples have been dropped. DeNaples was previously accused of lying to the Pennsylvania Gaming Control Board about his connections to organized crime figures in his bid to get a casino license.

Related perjury charges against DeNaples longtime friend Fr. Joseph Sica, are also being dropped.

The story will be updated throughout the day. The most recent updates are at the top of this page.

UPDATE 10:36 a.m.

Marsico said the nearly two years of investigation by his office into allegations against DeNaples "unmasked numerous problems" with the state's casino licensing application process. He proposed changes in a separate letter to Gov. Ed Rendell and legislative leaders.

In exchange for the withdrawal of the criminal charges, DeNaples agreed to turn over all his interests in the Mount Airy Casino Resort in the Pocono Mountains to a trust in the name of Lisa DeNaples, his daughter and the casino's chief operating officer.

The gaming board, which had awarded DeNaples a license in 2006, promptly banned him from setting foot in Mount Airy Casino Resort or exercising any control over it.

DeNaples, a wealthy Scranton-area businessman whose other businesses range from banking to garbage disposal, opened Mount Airy Casino Resort, Pennsylvania's first freestanding casino, in October 2007 under a state law that legalized slots and authorized as many as 14 casinos.

Related perjury charges against Joseph Sica, a Roman Catholic priest and longtime DeNaples friend, also are being dropped, Marsico said.

Two months before he was charged, DeNaples began making preparations to transfer ownership of Mount Airy to his children and grandchildren.

In his letter to the governor and legislative leaders, Marsico proposed several changes in state law, including a ban on convicted felons holding positions in the Pennsylvania gaming industry; assigning the state attorney general or the state police responsibility for conducting background checks of people applying for casino licenses; and giving the governor authority to appoint all gaming board members and limiting the Legislature's role in that process.

The proposed ban on felons is a reference to a 1978 no-contest plea entered by DeNaples to a felony charge of conspiracy to defraud the federal government in a case involving government payments to clean up the aftermath of Hurricane Agnes. DeNaples was fined $10,000 and placed on probation.

ORIGINAL POST 9:43 a.m.

Perjury charges against Mount Airy Casino Resort owner Louis DeNaples are being dropped.

Dauphin County District Attorney Edward Marsico said Tuesday his office will drop the criminal charges in exchange for DeNaples’ agreement not to exercise any legal control over his casino in Mount Pocono.

The agreement calls for DeNaples to turn over all of his interests in the business to a trust in the name of his daughter, Lisa DeNaples, who is currently the casino’s chief operating officer.

DeNaples was charged in January 2008 with four counts of perjury and accused of lying to the Pennsylvania Gaming Control Board about his connections to organized crime figures in his bid to get a casino license.

The charges were recommended by a Dauphin County grand jury based on evidence gathered by state police investigators.

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Associated Press Writer Peter Jackson in Harrisburg contributed to this report.

Copyright 2009 The Associated Press.