California’s casino received a $500,000 fine and will undergo an enhanced review. This is because staff did not alert authorities to the fact that a high-roller had brought $100 million in cash for him to play baccarat.
The high-roller, described only as a Chinese national, visited the Bicycle Hotel & Casino in Los Angeles County approximately 100 times over an eight-month period in 2016.
Federal prosecutors say the gambler would play high-limit baccarat in a VIP room with large sums of cash that he would transport to and from the casino in duffle bags. He would have an assistant perform cash-in/cash-out transactions, which totaled more than $100million.
Officials claim that the casino did not file suspicious activity reports during the gambling incident and incorrectly filed currency transactions reports under the names of the assistant rather than the high-roller.
Staff from hotels alerted the management about the failures late in July 2016 and they amended the currency transaction records to include the name of high-roller. Also, reports were filed regularly questioning the “suspicious origin of his funds”.
On Friday, federal prosecutors entered into a Non-Prosecution Agreement (NPA) with the casino requiring the establishment to pay a fine and improve its anti-money-laundering protocols.
The Bicycle Hotel & Casino in Bell Gardens, California was forced to pay a $500,000 fine and strengthen its anti-money-laundering protocols after a 2017 raid and investigation (pictured) revealed that the casino ailed to file suspicious activity reports and improperly filed currency transaction reports
After a Chinese-born high-roller, not pictured but described as a Chinese national brought $100M in cash during an eight-month period of 2016, the investigation began
Authorities raided the Bicycle Hotel & Casino in 2017 to investigate possible money laundering.
According to the Department of Justice the investigation found that between January 7th 2016 and July 27th 2016, the hotel had failed to file proper reports about the cash transactions of the Chinese national over his almost 100 visits.
One instance is cited by the NPA. The high-roller drew $2million out of his player account around 2.45pm. After that, he played in a VIP Room until 1.20am the next morning.
Even though the federal law required casinos to document and report transactions that involved more than $10,000 of cash, staff failed to report it to them.
Federal prosecutors say the gambler would play high-limit baccarat in a VIP room with large sums of cash that he would transport to and from the casino in duffle bags
He would have his assistant cash in or out transactions for him, with an estimated total value of more than $100 million. This type of activity was not reported by the casino.
The casino has since acknowledged its mistake and ‘moved quickly to amend its filings,’ the company’s attorney Johnny L. Griffin III told MarketWatch.
Bicycle Hotel $ Casino stated that they are committed to “ensuring that all its compliance programs and reporting systems are strictly followed, and updated as necessary according to the laws and regulations.”
In recognition of efforts by the casino to combat money laundering, the prosecutors entered into an NPA last week with it. They also accepted responsibility for the cooperation of authorities throughout the investigation. The NPA will result in the payment of the $500,000 fine.
Additionally, the casino must comply with additional reporting and review requirements. This includes an audit by a third-party and periodic reporting to U.S. Attorney’s Office.
Staff from hotels alerted the management about the failures late in July 2016 and they amended the currency transaction records to include the high roller’s name. Also, reports were filed regularly questioning the “suspicious origin” of the funds.
In recognition of efforts by the casino to combat money laundering, the prosecutors entered into an NPA deal with it last week. They also accepted responsibility for the cooperation of authorities throughout the investigation. The NPA will result in the payment of the $500,000 fine.
Bicycle must also agree to cooperate in all additional investigations and proceedings that may be triggered by the conduct found during an investigation.
‘I am pleased that the government, through its extensive and lengthy investigation, has determined and confirmed that there are no systemic faults within the Bicycle Hotel & Casino’s compliance and reporting programs,’ Griffin shared.
It is not clear at this point if the Chinese national under investigation is facing criminal charges.