Senator Larry Campbell serves on the board of directors of Great Canadian Gaming, which owns several casinos in British Columbia, include River Rock Casino, which a study of money laundering identified as being at the center of an international crime ring.
While this investigation has been going forward the member of the Canadian Senate has collected $800,000 in compensation and $2.1 million in shares from Great Canadian. Last week he refused to comment when asked if this didn’t create a conflict of interest for him. But shortly thereafter he stepped down as chairman of the Senate’s powerful standing committee on internal economy and budgets.
Global News wrote last week: “It is not known whether Campbell’s decision to step down as chair of the standing committee on internal economy and budgets, one of the most influential positions in Senate, has any relation to the evolving controversy at Great Canadian Gaming. And Campbell has repeatedly refused to answer questions from Global News.”
When asked about his possible conflict of interest in connection to the River Rock Casino’s money laundering allegations, the Senator remarked, “I have no idea what you are talking about.” Canadian law allows senators to serve on boards of directors and hold stock from public corporations. His appointment to the Great Canadian board was disclosed in 2008.
Senator Campbell is a former mayor of Vancouver and RCMP drug unit officer. During his term as mayor Campbell cast a very controversial deciding vote that granted Great Canadian a gaming license at a Vancouver racetrack.
An investigation of BC casinos and their connection to money laundering began about a year ago. At that time an audit disclosed that $14 million in suspicious transactions had occurred at River Rock Casino during one month.
BC Attorney General David Eby called for an independent review of money laundering. The investigation was done by a retired RMCP officer, Peter German, who filed a report on a “decade of dirty money.” The report held the former Liberal government (which is currently out of power) largely responsible for doing little to crack down on money laundering. It linked much of this activity to Chinese VIPs whose transactions in private rooms went largely unreported.
German said BC casinos were “unwittingly” allowing themselves to be used by organized crime, much of the money derived from drug activity.
Great Canadian has been criticized several times by regulators over compliance issues, including the alleged failure to retain records of large cash transactions. In April 2017 B.C. Lottery Corp. officials warned the company about compliance issues. This information was forwarded to B.C.’s finance minister by BCLC’s director of anti-money laundering investigations, specifically naming River Rock Casino Resort.
According to public records obtained by Global News, the official wrote, “This is a troubling list of incidents. I am going to discuss with senior people and decide on action to be taken from our side.”
Great Canadian has insisted that it welcomed Dr. Peter German’s report and was working to create a system to fight money laundering.
In a separate but related development, the B.C. the city government of Victoria, the capital of the province, has expressed concern that money laundering activities will follow if the small city allows a casino to open there.
Councilor Jeremy Loveday said the city needs assurances. “When I think of the things that could benefit our downtown, having a casino that could potentially bring money laundering and organized crime isn’t one of them,” Loveday said.
He is urging that the council authorize the mayor to write to AG Ebby and BCLC to get an update on the government’s efforts to fight money laundering. He is also seeking to have any casino application be vetted by the Victoria police.
Loveday commented, “It’s imperative we get this information and seek assurances that the systemic failures that have occurred in other casinos in B.C. have been fixed or that they will be fixed by the time a casino is opened in downtown Victoria, if the council of the day decides that that’s what they would like to see happen.”
