Canadian federal prosecutors and the Royal Canadian Mounted Police are not providing much explanation for why money-laundering criminal charges were stayed two weeks ago against Silver International Investments and Chinese nationals Caixuan Qin and Jain Jun Zhu.
The case is the result of a much-publicized investigation by the Mounties that included accusations of money laundering, underground banking and drug dealing from money that had been laundered by high rolling VIP Chinese players in B.C. casinos.
Apparently, some police “activities” contributed to the charges being stayed.
Sgt. Marie Damian of the RCMP issued this statement last week: “The RCMP is conducting a full scale review to understand its activities which contributed to this stay, and will incorporate relevant lessons learned into its investigative practices and processes where necessary,” adding, “More importantly, how to mitigate against the possibility this set of circumstances occurs again in the future.”
Two weeks ago, Crown prosecutors stayed charges having to do with “money laundering the proceeds of crime, possession of property obtained by crime and two counts of failing to ascertain the identity of a client,” against Silver International Investments, Caixuan Qin and Jain Jun Zhu.
The police allege to have uncovered more than $500 million from a Richmond-based money laundering operation that processed about $1.5 million daily.
Prosecutors will not say why they have stayed the charges. RCMP will not discuss the reasons for the stay.
Public Prosecution Service of Canada issued a statement that the charges did not meet its standards of having a reasonable prospect for conviction on the evidence.
Money laundering by B.C. casinos has been a hot item for several years. Earlier this year B.C. Attorney General David Eby issued an independent report that alleged that several area casinos had been heavily involved in laundering money for organized crime. He added that this money has had the effect of raising real estate prices to stratospheric levels.
The Vancouver Sun obtained some documents through a Freedom of Information request that allege that crime figures employed Silver International as a black market bank to clean up drug profits. This money would then be loaned to gamblers in China, who are hobbled in taking funds out of the country. When these VIPs got off the plane in Vancouver, they would literally be handed bags with large amounts of $20 bills.
They would then buy chips at casinos such as the River Rock Casino in Richmond.
The money would then be repaid through underground banks back in China.
Silver International incorporated in 2014 in Richmond. Caixuan Qin is listed as a director of the company’s board. In a 2015 raid on the company’s office the RCMP seized more than $2 million in $20 bills, along with ledgers and transaction records. These led police to conclude that the company laundered $220 million in cash during a one year period.
