The California Gambling Control Commission has revoked Casino M8trix co-owner Eric Swallow of his gaming license for the San Jose based card room. He was also hit with a .7 million penalty.
The city alleges that Swallow and his partners in the casino funneled money into several hidden companies to avoid paying taxes. These allegations were never proven, but because Swallow made false statements and failed to provide documentation to the Bureau of Gambling Control he was hit with the disciplinary measures.
Swallow’s attorney calls the penalty “unwarranted” and promised to appeal it in court. He told the San Jose Mercury News, “He was not charged with any wrongdoing in connection with these money transfers. It’s not clear what they are fining him for. There is no connection between the specific alleged violations that they found … and the fine.”
Two years ago the California Attorney General’s Office accused Swallow and his partners Peter and Jeanine Lunardi of using “shell” companies to hide profits. The Lunardis settled with the state and were allowed to keep their licenses. Swallow must immediately find a buyer for his interest.
San Jose City Attorney Richard Doyle commented last week “Come June 27, he better have a buyer or he can no longer operate. His partner can, but that’s going to have to be worked out among them.”
