Criminal charges have been filed against the money-transfer company Silver International Investment in Richmond, British Columbia. The Royal Canadian Mounted Police’s Project E-Pirate alleged the business handled a total of more than 0 million, often .5 million a day. The allegations also include ties to underground banking and using suspected drug cash to fund Chinese VIP gamblers in British Columbia casinos.
RCMP spokeswoman Nathalie Houle said, “The Public Prosecution Service of Canada can confirm that charges have been laid against Caixuan Qin, Jian Jun Zhu and Silver International Investments Ltd. in relation to Project E-Pirate. We have no other information to provide at this time.”
And in related news, it recently was revealed that the former Liberal provincial government shut down the Integrated Illegal Gaming Enforcement Team, which operated from 2003 to 2009, soon after the IIGET expressed interest in investigating allegations of money laundering at BC casinos. Gaming Minister Rich Coleman said IIGET was inefficient, redundant and had a high staff turnover rate. In April 2016, the former Liberal government announced a new Joint Illegal Gaming Investigation Team had been formed to combat money laundering and gang activity at the province’s brick-and-mortar casinos.
However, the Vancouver Sun recently reported the IIGET was terminated due to “exigent funding pressure” being put on the budget of the British Columbia Lottery Corporation, which oversees gaming activity in the province. The Sun also stated the former Liberal government buried a 2016 memo that prior to November 2015, River Rock “did not review large cash transactions of $50k or less for indicators of being suspicious transactions.” The memo also indicated since the IIGET was shut down, gaming-related investigations and enforcement had been conducted “in an ad-hoc manner,” leading to “a significant increase in the number of illegal gaming houses in the province and the legitimization of proceeds of crime through illegal gaming facilities.” The memo added since 2011, zero illegal gambling-den charges had been filed by the province.
Regarding the recent criminal charges, citing freedom-of-information documents, the RCMP and BC government claim Silver International Investment was used as an illegal bank to wash drug money via a network of “private lenders” in Richmond, who lent cash from Silver to VIP gamblers recruited from China. These high rollers traveled to B.C. for gambling junkets and received bags full of cash, according to the allegations. The loans allowed wealthy gamblers to get money in Canada, bypassing China’s tight capital export controls, and repay the loans through underground banks in China. The VIPs bought betting chips at the River Rock Casino, using street-cash $20 bills, then cashed out with $100 bills more suitable for banks, an audit by B.C.’s gaming enforcement policy branch alleged.
Court records indicate Qin and Zhu each face five counts, including laundering proceeds of a crime, possession of property obtained by crime and failing to ascertain the identity of a client. Silver International faces the same five counts. The accused are scheduled for a first appearance in Richmond provincial court on October 30.
Canada Revenue Agency spokeswoman Heidi Hofstad said the agency “is currently involved in this ongoing investigation. These cases are complex and require months or years to complete. The time it will take will depend on the number of individuals involved, the availability of information or evidence, cooperation or lack thereof of witnesses or the accused.”
RCMP Inspector Bruce Ward said the E-Pirate investigation started with surveillance of gambling and cash drops at River Rock Casino, which led to Silver’s offices, located 10 minutes away. Ward said RCMP surveillance identified 40 different organizations linked to Asian crime groups dealing cocaine, heroin and methamphetamine. “Suitcases laden with cash,” typically $100,000, were being delivered by dealers to Silver’s cash house and within minutes a credit for $95,000 would appear in a Chinese bank; a five per cent fee was kept for the laundering and transfer service.
A 2016 B.C. gaming enforcement branch audit alleged that River Rock staff knowingly accepted millions in suspicious cash that was provided to VIP gamblers by lenders who were banned from B.C. casinos.
Rod N. Baker, chief executive officer and president of the Great Canadian Gaming Corporation, which manages the River Rock Casino, has issued a statement noting procedures to ensure regulatory compliance always have been strictly followed. He said the company has a culture of integrity and transparency and is committed to preventing illegal activities at all of its locations.
Baker added Great Canadian first noted suspicious activity at River Rock in 2012, and because it continually monitors and reports to the BCLC, the individuals allegedly involved in the current case were identified. He stated Great Canadian provides records about unusual and large cash transactions directly to the BCLC, which assesses whether the transactions require further investigation.
