On the eve of its grand reopening, after a million renovation, The Gardens Casino faces a revocation of its license by the Bureau of Gambling Control, which alleges that some casino operators failed to abide by federal anti-money laundering law.
The Bureau filed its accusations in October, and included in the indictment CEO David Moskowitz. The casino has already admitted that it wasn’t following the law correctly.
Per the accusation, “In view of that nondisclosure and admitted violations of federal and state laws, respondents continued licensure undermines the public trust that licensed gambling does not endanger the public health, safety and welfare.”
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) slapped the casino with a $2.8 million fine in July. This followed examinations by the IRS that concluded that the casino wasn’t abiding by the Bank Secrecy Act and that it was “susceptible to money laundering and terrorist financing activity.”
This situation existed for more than six years, says FinCEN. The casino failed to implement necessary controls, despite warnings in 2011 and 2013. The great majority of the suspicious activity occurred between January 1, 2013 and September 18, 2014. Moreover, 347 cash transactions involved amount between $9,000 and $10,000, an amount that normally sets off red flags among federal law enforcement since the amounts are just short of what is required to trigger mandatory reporting.
These accusations came to the surface when Gardens Casino went before the commission in November to renew its license. The commission issued a provisional license while the commission decides what other action to take. Meanwhile the allegations are likely to go before an administrative law judge eventually.
The casino remains open with a provisional license that will allow it to operate until November 30, 2018.
