The California Bureau of Gambling Control is seeking to revoke the license of the principals of the Hawaiian Gardens casino and that of its CEO David Moskowitz, contending that the casino has been knowingly violating federal money-laundering laws.
This development is coming a few weeks shy of when the casino plans to hold a grand reopening after spending $90 million to renovate. The casino is the major employer of the city of Hawaiian Gardens, and is its largest source of tax revenue.
In October, the bureau filed the accusation that alleges that the casino’s operators did not comply with anti-money laundering laws, including the Bank Secrecy Act, and failed to tell California officials. Gardens Casino has reportedly admitted to its deficiencies in obeying the federal law. Those deficiencies earned the casino a $2.8 million fine from the Financial Crimes Enforcement Network, or Fin CEN, which followed on the heels of an Internal Revenue Service investigation. Fin CEN concluded that the casino violated the law from September 2009- July 2016.
The Bureau contends, “respondents’ continued licensure undermines the public trust that licensed gambling does not endanger the public health, safety and welfare.”
The Gardens Casino remains open on a provisional license that is valid until November 30, 2018. So far an administrative law judge hearing on the accusation has not yet been scheduled.
