Tag Archives: loan sharking

FOR IMMEDIATE RELEASE: Vancouver Not Vegas Calls for Reinstatement of Specialized Casino Police Unit

Photo via CBC
The Vancouver Not Vegas coalition calls for Premier Clark to reinstate the Integrated Illegal Gaming Enforcement Team (IIGET), following revelations that suspicious transactions have more than doubled in casinos since 2011.

In 2009 the specialized casino police unit IIGET was disbanded weeks after it warned then Solicitor-General Rich Coleman that organized crime had infiltrated the gambling industry and was actively laundering money and loan sharking in casinos (see Appendix A).

By 2011 cash monitoring had deteriorated so severely that the BC Lottery Corporation was fined almost $700,000 by the federal agency FINTRAC for failure to control suspicious transactions at casinos.

“This is a complete systemic collapse of governance,” says Sandy Garossino, spokesperson for Vancouver Not Vegas. “There’s been no specialized policing presence in casinos for 5 years and organized crime has been brazenly active the whole time. BCLC has completely failed to control casino criminal activity.”

Vancouver Not Vegas renews its calls for former BCLC CEO Michael Graydon to be deemed unsuitable for employment with Paragon Gaming.  “Did Graydon know about this report when he jumped without warning from BCLC?” asks Garossino. “For at least 5 years Graydon knew organized crime was active in BC casinos, and completely failed to rein them in. Now he’s going to head a casino of his own?”

During the casino fight in 2011, 18 senior organized crime policing specialists submitted a letter which warned Vancouver City Council about rampant criminal activity of gangs and organized crime in casinos.
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Text media requests to:
Sandy Garossino 778-231-5230

See also:
Former Commander IIGET comments on casino oversight:
http://www.publiceyeonline.com/archives/004373.html
http://www.publiceyeonline.com/archives/004427.html
http://www.publiceyeonline.com/archives/004907.html

Appendix A:

Excerpted quotes from 2009 IIGET report on criminal activity in casinos (p 22):

“Canadian casinos are extremely vulnerable to money-laundering because they deal in cash and handle tens of millions of dollars every day.

Many investigations… have shown that members of organized crime use casinos for criminal purposes (e.g. loan sharking and money laundering) and that some of these criminal elements have successfully infiltrated the industry.

Since 2003 FINTRAC has sent several disclosure reports to the RCMP on suspicious transactions involving casinos… Anecdotally, police managers have suggested… nothing is being done to investigate these situations.”

(emphasis added)

Brazen Conflict of Interest by Former CEO Exposes Feeble Governance at BCLC

Michael Graydon BCLC

FOR IMMEDIATE RELEASE: Vancouver, Feb. 7, 2014

Brazen Conflict of Interest by Former CEO Exposes Feeble Governance at BCLC

The resignation of Michael Graydon as CEO of BC Lottery Corporation (BCLC) to assume the role of president of PV Hospitality ULC in which Paragon Gaming Corporation is a partner raises serious conflict of interest and BCLC governance concerns says Vancouver Not Vegas.

“It’s a grave concern that the BCLC, which oversees an industry requiring the highest standard of integrity and transparency, would permit a departure of this kind from expected ethical standards”, says founding member Ian Pitfield.

“The Federal Government applies post-employment restrictions to public office holders.  Why should the Province not insist on the same restrictions for senior employees of Crown Corporations?” Pitfield asks.

The Vancouver Not Vegas coalition calls for an investigation into the circumstances surrounding this move, and asks the BC government to answer the following questions regarding this and other governance issues within BCLC (BC Lottery Corp):

  • When did Michael Graydon begin employment discussions with Paragon, a company of which he was the regulator?
  • What assurances or commitments did he make to Paragon, his future employer, while he was in discussions with them concerning compensation, terms, etc?
  • What knowledge did the BCLC have of employment discussions between Graydon and Paragon, and did it approve it?
  • Why, after BCLC chair Richard Turner bought shares in Paragon Gaming in 2004, did the BCLC not institute a firewall policy preventing employment or financial relationships between senior executives. board members and regulated corporations?
  • Senior management at BCLC are in possession of significant confidential financial information pertaining to all gambling operators in BC. It’s unthinkable that it has failed to safeguard that trust by preventing conflicting employment agreements for senior executives.

It is unthinkable that BCLC has failed to safeguard the trust by prohibiting key employees from assuming employment with regulated gaming companies for a period of two or three years following retirement or resignation. But today’s news is only one chapter in a history of governance breakdowns.

Documented lapses in governance at BCLC include:

  • Unprecedented $700K FINTRAC fine in 2010
  • Documented loan-sharking, money-laundering in casinos
  • BCLC Chair Richard Turner’s acquisition of shares in Paragon in 2004, and subsequent move to become director.

Today’s revelation, combined with a repeated pattern of inept governance points to a rudderless corporation unable to exercise basic control over its key operations.

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Media contacts:

Sandy Garossino
Please TEXT queries to:
778-231-5230

Ian Pitfield
604-828-5494

http://vancouvernotvegas.ca

See also this original story.

When a small Richmond, B.C. casino expanded to become River Rock…

Here’s what happened when Richmond, B.C.’s small Bridgeport Casino expanded to become the River Rock Casino. Vancouver Sun, October 25, 2007. Also see “Richmond sees rash of casino-related crime” on canada.com.

Casino a crime magnet: RCMP

The opening of River Rock Casino in Richmond has led to a quadrupling of casino-related crime and allowed new organized crime groups to gain a foothold in the city, according to an internal RCMP report obtained by The Sun:

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