Select Page

Califor<span id="more-8573"></span>nia Tribal Faction Accused of ‘Looting’ Casino For Millions

Rolling Hills Casino in Northern California: the scene of a cyber-attack plus an armed standoff after the ousting from power of the controlling faction that is tribal.

A tribal faction that once controlled the Rolling Hills Casino near Corning in Northern California engaged in a ’12-year looting spree’ and plundered the casino for tens of millions, according to a lawsuit.

The complaint states that former tribal officials of the Paskenta Band of Nomaki Indians frittered away the tribe’s money on ‘absurdly luxurious lifestyles of personal jet travel, luxury homes, high-end vacations, custom sports vehicles and high-profile sports.’

‘The casino is the source that is primary of tribe’s income,’ the lawsuit states. ‘The income the tribe has derived from the casino throughout the last 12 years has made a difference that is dramatic the lives’ of the tribes people and it has continued to improve their quality lifestyle.’

The 171-page grievance includes claims under the federal Racketeer Influenced and Corrupt Organization Act (RICO) and names 19 defendants, who managed the casinos funds from 1998 until 2014, when the faction was ousted. Four defendants are named as ringleaders of the team: the very first is a former Sacramento FBI agent John Crosby; his mother, Ines Crosby, the former tribal administrator; her sister, Leslie Lohse, the former tribal treasurer; and her husband, Larry Lohse. They’ve been accused of misuse and embezzlement of company funds.

Fools’ Silver

A recent audit revealed the degree of the misuse of funds: $17 million had been spent on private jet travel and over $1 million on tickets for Sacramento Kings baseball games. Meanwhile, $93 million was committed to gold, real estate and ‘unproven, high-risk startup companies.’

The faction launched a cyber-attack on the casino’s systems before attempting to retake control of the property by force, resulting in a weeklong armed standoff on June, two months after it had been toppled from power.

‘In April 2014, in a remarkable and inspiring phrase of self-determination and democracy, the tribe arrived together and removed the RICO Ringleaders from energy,’ the lawsuit states. ‘The Rico Ringleaders did not, but, get quietly.

Armed Assault

‘ In an effort to both retake control associated with tribe and prevent discovery of their criminal enterprise while the illegal benefits that they derived from it, the RICO defendants launched an armed attack on the tribe’s Rolling Hills Casino in coordination with a destructive cyberattack on the casino and tribe’s computers.

‘The RICO defendants intended these attacks to shut the casino down far and away the most important source of income for the tribe as well as its members to force the tribe to allow them back control, essentially making use of the financial welfare of each and every other tribe member as being a hostage. They further intended to, and did, destroy electronically stored information that could be used as proof of their years of criminal activity.’

The Rolling Hills Casino opened in 2002 and generates $100 million annually, providing $54,000 per year for every single member of the 300-strong musical organization.

RAWA Hearing Rescheduled as Sponsor Requires a Hit

Utah Representative Jason Chaffetz says that if state lottery officials don’t like RAWA, they should ‘get their own bill.’ (Image: AP)

The Congressional committee hearing associated with the Restoration of America’s Wire Act (RAWA), the bill that seeks to prohibit online gaming on a federal degree, has been rescheduled for March 26.

The hearing, which was due to take place on March 5 but was postponed due to severe climate in Washington DC, has been criticized, because the list of witnesses due to testify consisted largely of online video gaming opponents.

Despite this, the gambling industry shouldn’t worry a lot of, as the bill still has very chance that is little of law, and continues to be an unpopular little bit of legislation on Capitol Hill. But that is not the only calamity surrounding the measure’s proponents.

Take Congressman Brad Ashford (D-NE), as an example. While listening to Israeli Prime Minister Benjamin Netanyahu’s speech to Congress week that is last Ashford had been struck accidentally by Dr. Miriam Adelson’s purse; a doctor, of course, is none other than Mrs. Sheldon Adelson, who is one of RAWA’s greatest supporters. The item in question had fallen from the ledge above where she by herself was sitting.

Change of Heart

Fortunately for Ashford, the super-rich don’t appear to carry huge amounts of cash around with them, and therefore he survived, although the potentially near-death experience apparently changed the way he saw the world. Two days later, he became the politico that is latest to sign his name in support of the Adelson-backed RAWA.

Meanwhile, Adelson’s right-hand man, Andy Abboud, suggested in an interview that is recent Gambling Compliance that his boss is ‘unlikely to just accept exemptions for state lotteries and tribes in a bill to prohibit Internet gambling.’

The truth that RAWA insists on dismantling state that is online is, in fact, one of the main reasons chances are to fail. The states will almost certainly fight it. Currently over 12 states offer some form of online lottery product sales, and a minumum of one, perhaps Kentucky, is expected to come on board in 2010. Meanwhile a dozen more are debating the issue.

‘Get Your Own Bill’

You might think that Utah Representative Jason Chaffetz, who reintroduced RAWA to Congress previously this year, would like to explanation with the 20 state lottery officials he spoke to this week within a seminar call to talk about the bill. Instead, he decided to snap at their officials.

When you don’t like RAWA, he chided, ‘get your own bill.’

Meanwhile, over in sc, technophobe Senator Lindsey Graham, certainly one of RAWA’s most vociferous supporters, revealed this week that he has never delivered an email in his life, despite being an expert that is apparent the difficulties of Internet money laundering.

He does, however, appear to understand how to receive them, particularly if they’re invitations to fundraising parties at Sheldon Adelson’s house.

Caesars Quizzed Over Lost Pension Plans

The Nevada Gaming Control Board demanded to know just what happened to former Caesars employee pensions this week. ‘ The issue will be addressed in a manner that is legal, fair and equitable by the company,’ stated its lawyer.(Image:

Caesars Entertainment was expected to offer answers concerning the cessation of retirement re payments to employees that are former a hearing of the Gaming Control Board on Wednesday.

The Board had met with Caesars’ lawyers to discuss the ongoing bankruptcy proceedings surrounding the business’s main running subsidiary, Caesars Entertainment running Co (CEOC).

As had been reported early in the day into the week, an undisclosed number of former employees was informed which they would no further receive Supplemental Employment Retirement Arrange (SERP) payments from Caesars as a result of Chapter 11 filing.

SERP re payments ‘are considered a broad unsecured obligation that is pre-petition of debtor and can’t be compensated without certain authorization from the bankruptcy court,’ said Caesars in a letter to your previous workers in January.

It is understood that the pension schemes in question had been offered by companies that had been later obtained by Harrah’s Entertainment before it became Caesars Entertainment in 2010. Caesars has said that the presssing issue affects fewer than 50 people, although appropriate sources near to the nevada Review Journal, which broke the story, place the figures at more than double that.

Equitable Decisions

Caesars’ lawyer Steven Pesner told the Gaming Control Board that the ongoing business was ‘looking seriously’ into the issue. ‘ The issue will be addressed in a manner that is legal, fair and equitable by the ongoing company,’ he stated. ‘There are equitable considerations to be manufactured … he added if I were in charge of the world, people would come before banks. ‘ We have plenty of people searching at this.’

Control Board Member Terry Johnson, who raised issue at the hearing, warned Caesars representatives that ‘the pensioners can be an matter that is important should not get lost in this discussion.’

‘ The intent of the board would be to make it known this can be an problem we are concerned with,’ he told reporters afterwards. ‘i still don’t know if they have talked with the bankruptcy judge about this presssing issue.’

Most Advanced Bankruptcy in a Generation

Pesner told the hearing that the Chapter 11 filing was ‘the largest & most bankruptcy that is complex a generation.’ The bankruptcy of CEOC is part of a restructuring plan which, Caesars Entertainment hopes, will eliminate $10 billion of CEOC’s $18.4 billion debt.

However, on Thursday a bankruptcy judge ordered an independent examiner to investigate the transfer of assets from CEOC and whether there was indeed ‘any obvious self-dealing or disputes of interest involving the debtors or their affiliates.’

A group of Caesars’ low-level creditors claim that CEOC is struggling to pay its debts since it transferred many of its assets to Caesars Entertainment for the gain of its managing private equity backers, TPG Capital Management and Apollo Global Management.

Among the transfers become scrutinized are the ones of Octavius Tower, The Cromwell, The Quad, Bally’s nevada and Harrah’s New Orleans.

Changes In Store As Macau Looks To Diversify Beyond Gambling

Lawrence Ho says that while Macau may diversify, it will never move away from casino gambling as being a focus that is central of economy. (Image: Getty Pictures)

Macau is synonymous with gambling. That is the result of a decade of incredible development in the enclave that is chinese a period that took Macau from a local gambling hub towards the planet’s gaming powerhouse, far surpassing Las Vegas or any other town with regards to gaming profits.

But over the year that is last Macau casinos have watched their profits fall precipitously: in February, year-over-year month-to-month revenues were cut nearly in half for casinos here.

And that means that changes are planning to need to arrived at Macau, even if not everyone having a stake into the region agrees on just what that means.

Some in Macau seem content to work with mainland Asia to better control the flow of cash and tourists to the video gaming hub. In recent days, Macau’s government has made statements suggesting which they would be amenable to placing a cap on the number of tourist visas which they would issue every year, something that would likely help China inside their efforts to suppress the illegal flow of money off the mainland and into casinos.

Macau to Report on Tourism Ability

According to Macau Chief Executive Fernando Chui Sai, the Macau federal government plans to submit a written report to Beijing that will talk concerning the capacity that is maximum tourism in the town and how both sides can optimize the flow of travelers from China to Macau.

Chinese visitors to Macau and Hong Kong currently obtain permission to travel through Asia’s specific visitor scheme (IVS) that had been set up in 2003 to encourage more travel after the SARS outbreak that year. Chui said that the specifics for the policy might have to be revisited now that Macau gets a lot more visitors than it was at the time the IVS had been put into place.

Any cap regarding the number of visitors allowed in Macau from China would be yet another sign that casinos won’t be seeing the sorts of revenues they enjoyed just a 12 months ago once again any time in the future. Now that the casino operators are beginning to fully adjust to this reality that is new some are rethinking their plans and lowering on extravagant expenses.

Sands Lowering on Big Ticket Entertainment

For example, the Las Vegas Sands is talking about reducing on some of their big-ticket entertainment events, the sorts that were originally planned to simply help encourage growth in the mass market segment. The Sands happens to be concentrated on the mass market because the VIP segment is hit hardest by China’s corruption crackdown, nevertheless, so the cutbacks may become more a matter of determining what’s most cost rather that is effective giving up on this strategy entirely.

‘We’re not looking to take it apart, the structure that is whole but reexamine where [there are] possibilities to operate it cleaner and better,’ Sands president Rob Goldstein told investors.

That’s not necessary just what Macau officials want to hear. The city’s government wants individuals to realize that there’s more doing there than gamble, even though efforts to far diversify have so been sluggish in developing. As an example, officials had hoped that conventions and exhibitions could start to generate more income locally, but that remains a really part that is small of’s economy.

Ho Says Gambling Will be Focus in always Macau

That does not mean that gambling has to entirely go away, of program. In a panel meeting in Beijing, Lawrence Ho stressed that Macau had been still easily the gambling hub that is largest in the world even after the revenue freefall associated with this past year. Given how big the industry, Ho stated, it will constantly remain a part that is inseparable of’s economy. Other professionals on Macau agree with this evaluation.

‘Macau will not be a town that is one-horse only based in casinos, but the diversification will simply take place in the tourism and hospitality industries,’ said Michael present, a visiting associate professor at the University of Macau.