The Saga Continues: River Rock Employees Questioned Over Laundering
Reports from documents and interviews reveal that allegations from managers at River Rock Casino were warned that its employees shredded the entire paper records involving bulk money transactions. This reveals why many high-rollers were avoiding the interviews from anti-money laundering agency in Canada.
The record shredding is one of the most compliance issues that are related to casino’s VIP gambling which the top management (B.C. Lottery Corp) warned the gaming executives of Great Canadian because they smelled a rat.
Through an email, the executives were requested to meet Lottery Corp. to discuss the large cash transaction compliance. The email contained every detail to be addressed in the meeting so that the police investigations can be protected.
Following the account of the meeting, Robert Kroker, the Vice President of Corporate Security at Lottery Corp. and the anti-laundering managers told the executive that the employees were sometimes seen shredding paperwork of the huge cash transactions. However, the cash was below $10,000 limit required for reports to be filed at Fintrac.
This trend of shredding the transactions might have led to the probability that the cash meant to be delivered to Fintrac was not successful- basing the results from the meeting.
For instance, the players at River Rock Casino could buy chips worthy $10,000 in cash at 5 am. After a short while, like 6 am, the records could be shredded for it to make another $10,000 cash transactions.
From Fintrac’s directives report, the entire transactions made by one player with a day totalled approximately $10,000 or even more. So in case, a gambler transacted with, for example, $20,000 within a day, the transaction was not recorded according to Fintrac following the account between Great Canadian executives and Lottery Corp. executives.
At the end of the year, the money laundered was more than $1 billion. And the people involved are not outsiders, but the officials in the casino.
It’s Fintrac that is given the mandate to keep in track of financial reports of banks, realtors, casinos and other financial businesses in Canada’s system. It also takes corrective measures and actions if the rules are violated.
Global News requested Great Canadian Gaming to answer some questions concerning the compliance meeting. However, no response was provided for the requested interview.
According to a prepared response, it states that Great Canadian and River Rock Casino are equipped with all regulations as well as large transaction reports for any transaction handling more than $10,000. The response also added that River Rock and the Great Canadian were not its focus on any enforcement activity concerning their practices or monitor files that were required by the report to be filed.
A statement indicates that all big cash transactions at River Rock Casino are recorded electronically, hence retaining all the copies of big money transactions. The report also mentions Peter German, an independent reviewer, to have found that Great Canadian management acted accordingly to the compliance matters.
Following VIP room staff and cash transaction handling issues, former VIP room employee at River Rock was interviewed by Global News. The employee handled large money transactions at the casino and was familiar with some of the casino’s VIP staff including a VIP host who was de-registered after violating the Lottery Corp. and Fintrac anti-laundering rules.
In his statement, the former employee confessed what was happening in the private high-limit betting room. He said that VIP hosts moved high-rollers to “private cash cage” and then the gamblers could deposit their cash to the cashier. He continued to explain that the cash was calculated and then table dealers would be offered a slip and finally submit an equal amount of chips to VIP players.
The former employee claimed that VIPs were not asked anything concerning the large cash transactions especially in some cases when they tipped the employees $500 on the gambling session.