LOST VEGAS: The Casino Innovator Whose Mafia Connections Led to His Mother-in-Law’s Death


The Burbank Police Department still refers to it as “one of the most infamous crimes in the city.” It inspired two books, an Oscar-winning Susan Hayward movie, and three executions — including the wrong execution of a woman.

And the brutal 1953 killing of 64-year-old widow Mabel Monahan only took place because Las Vegas casino pioneer Luther B. “Tutor” Scherer had connections in the criminal world who thought his visits to his ex-mother-in-law’s house were for hiding proceeds from Las Vegas casino activities.

Tutor Scherer, center, poses with Desert Inn frontman Wilbur Clark, from left, Nevada Lt. Governor Cliff Jones, Cleveland mobster and Desert Inn part-owner Morris Kleinman, and Clark County Commissioner Jack Petitti. (Image: UNLV Special Collections)

Like many Las Vegas casino pioneers, Scherer started his gambling career in the criminal world. His past included illegal gambling operations, underground clubs, and illicit bookmaking.

However, operating in Los Angeles fell under gangster Mickey Cohen’s territory. When Cohen’s associates started causing problems, Scherer left the city.

Going Legit

Vegas Vic shortly after its installation atop Scherer’s Pioneer Club. (Image: UNLV Special Collections)

In Las Vegas, Scherer operated El Rancho Vegas legally and co-owned the Las Vegas Club and Pioneer Club, where he had the iconic Vegas Vic sign installed.

Scherer frequently visited L.A. and usually spent time with the mother of his second wife, Monahan. Monahan, a former vaudeville performer known as Madam Martinez, lived alone in the Burbank house Scherer had left to his daughter, Iris, after their divorce. Iris didn’t want the house, which likely saved her life.

“Some of Scherer’s former accomplices noticed he was visiting Mabel and assumed he was hiding money in her house,” said Marcia Clark, author of the book Trial By Ambush about Monahan’s murder.)

Worst Housewarming Gift Ever

On March 9, 1953, a group broke into Monahan’s house searching for money from Las Vegas. Monahan was beaten and strangled to death. The crime scene was horrific even for experienced law enforcement officers.

Monahan wasn’t the only innocent victim of Scherer’s criminal past.

Emmett Perkins, Jack Santo, John True, and safecracker Baxter Shorter brought Barbara Graham, a heroin user and criminal, with them. Graham was supposed to lure Monahan to open the door.

In 1955, Barbara Graham became the third woman executed in a California gas chamber. (Image: California Department of Corrections and Rehabilitation)

“Mabel was well known to be very security conscious, and she would never have opened her door to a strange man at night,” Clark said. “Barbara, on the other hand, who was petite — 5 foot 3, 120 pounds and pretty — was a different story.”

Graham claimed her car had broken down and asked Monahan to use the phone. When Graham opened the door, True pushed his way in behind her.

Another Undeserved Death

“Barbara was essentially a bystander, and the men were the ones who killed Mabel,” Clark said. While Graham’s presence at the crime scene justified a murder conviction, it likely did not warrant the death penalty.

However, the prosecution pursued Graham aggressively, claiming she was the leader. True, who received immunity, stated that she had been the one to harm Monahan.

Jail acquaintance Donna Prow provided a fake alibi for Graham. Evidence was manipulated, witnesses disappeared, and the media demonized Graham as “Bloody Babs.”

Portraying Graham with compassion that she lacked in court earned Hayward an Academy Award for Best Actress in 1959 for I Want to Live!

Graham, along with Perkins and Santo, was executed by cyanide gas at San Quentin on June 3, 1955. Shorter likely met a grim fate for speaking out. True, the prosecution’s key witness, emerged unscathed.

Scherer Luck

Scherer and his third wife, LaVeeda Varley, are photographed at their July 1951 wedding. Those smiles would not last. (Image: Las Vegas News Bureau)

Scherer was questioned about the murder but was never believed to be the perpetrator.

“I’m devastated that Mabel was killed,” he told reporters. “We always got along well, even after the divorce.”

His luck in Las Vegas casinos continued, but his love life remained unfortunate. Varley, a well-known model in early Las Vegas, discovered his infidelity three weeks before their first anniversary and shot him in the leg.

Scherer passed away from a heart attack on August 19, 1957, leaving behind four wives, a renowned sign, a street named after him – Scherer Street, near Ansan Sister City Park — and a tragic legacy.

“Lost Vegas” is an intermittent Casino.org series highlighting forgotten tales in Las Vegas history. Click here to explore other episodes in this collection. Do you have a fascinating Vegas tale lost to time? Please email [email protected].



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