The Bicycle Fined $500K by Feds, Faces California Anti-Money Laundering Charges

 

The Bicycle Fined $500K by Feds, Faces California Anti-Money Laundering Charges

California Attorney General Rob Bonta on Friday filed a complaint with the state’s Gambling Control Commission against The Bicycle Hotel and Casino. That’s after the federal government fined the Bell Garden cardroom $500,000 for violating a law to stop money laundering.

Earlier that same day, the US Attorney for California’s Central District said The Bicycle failed to file proper Currency Transaction Reports (CTR) and Suspicious Activity Reports for Casinos (SARC). Both were for a Chinese national high roller who visited the casino about 100 times during a nearly eight-month stretch in 2016.

The high roller employed an assistant who handled more than $100 million in cash transactions during that period. According to the US Attorney’s release, the cardroom’s staff notified management in July 2016 that workers failed to file CTRs in the gambler’s name. Casino staff also did not file any SARCs during that span, which ran from Jan. 7, 2016 to July 27, 2016.

After being made aware, The Bicycle refiled the CTRs. It then started filing SARCs “based on the suspicious nature of his source of funds,” and the casino established an Anti-Money Laundering Committee to increase awareness of federal anti-money laundering laws and regulations.

Because The Bicycle accepted responsibility for its actions and took steps to improve its anti-money laundering efforts, federal authorities agreed not to prosecute in lieu of the fine. The cardroom also must submit to an independent audit and바카라사이트

 conduct continued cooperation with authorities.

Complaint: Bicycle Didn’t Learn from Other Cardroom Incidents

With the federal investigation resolved, Bonta said in a statement he would seek to hold The Bicycle’s owners responsible for breaking state laws.

“Our gaming laws are about protecting the public and ensuring money from illicit activity isn’t funneled through card rooms and casinos,” he said.

Federal authorities noted that The Bicycle’s management cooperated with the investigation. But the complaint before the CGCC noted that state and federal officials levied similar charges against five other cardrooms during the previous five years.

The incidents led to emergency shutdowns and at least $1.8 million in fines.

“Respondents apparently did not adjust or react, or elected to turn a blind eye, to events involving California’s card rooms relating to BSA compliance and anti-money laundering programs,” the complaint stated. “Those events included emergency orders shutting down card rooms, federal indictments, and a FinCEN assessment.”

The complaint seeks additional monetary penalties against the casino, and a spokesperson for the attorney general told Casino.org that additional disciplinary actions could include suspensions or license revocations.

When asked if there were any criminal proceedings, the spokesperson said the office does not comment on potential or ongoing investigations.

A message left Friday for The Bicycle representatives was not returned.

California Cardrooms Want Sports Betting

News of The Bicycle’s fine could not come at a worse time for cardrooms. They are trying to get a measure on next year’s ballot to allow sports betting and offer more types of card games.

The cardrooms’ measure would allow all other forms of legal gaming – state-licensed racetracks and tribal casinos – to offer sports betting, and the state’s professional sports teams would get the opportunity as well.

Bonta’s office released the summary for the measure last month. Proponents have until mid-April to submit petitions to county elections officials. The measure needs more than 997,000 signatures from registered voters to make it on the November 2022 ballot.

Tribal casinos already have secured a measure온라인슬롯사이트 on next year’s ballot that would allow retail sports betting at their venues and state racetracks. In addition, seven sports betting operators are funding a proposed measure that would legalize mobile wagering statewide.

The cardrooms measure, if it gets on the ballot, says that the sports betting measure that earns the most yes votes – if more than one passes – would be the one that’s enacted.

While the groups will work to promote their own individual measure, they will also work to defeat rival measures. As part of that, the cardrooms and their supporters have created “Taxpayers Against Special Interest Monopolies.” Records from the California Secretary of State show The Bicycle has contributed to the committee.

Tribal casinos oppose both the cardroom and sportsbook measures. Regarding the cardrooms, tribal leaders have been quick to point out their history of run-ins with state and federal authorities.

“They are considered bad actors,” Pechanga Band of Luiseño Indians Chairman Mark Macarro said about the cardrooms at last month’s Global Gaming Expo in Las Vegas.

FBI Cyber Crime Division Warns Tribal Casinos About Ongoing Threats

The FBI Cyber Crime Division says casinos owned by Native Americans should remain on high alert for ransomware attacks.

Numerous counts of cyber attacks on tribal casino resorts have been reported in recent years. But there’s been an uptick of such crime, federal officials explain. In an industry notification distributed last week to tribal casino properties, the FBI said cyber gangs find such businesses attractive to penetrate because of an array of perceived security shortcomings.

Bleeping Computer is an information security and technology media outlet that first reported on the FBI intelligence.  It explains that since the tribal casinos are located on sovereign land, their IT infrastructure networks are at greater risk of attack.

Limited cyber investigative capabilities and law enforcement resources are likely some of the reasons behind ransomware groups seeing US tribes as desirable targets,” wrote Sergui Gatlan for Bleeping Computer.

The FBI Cyber Crime Division adds that while many tribal casinos are IT savvy, with world-class computer networks and gaming systems, many others remain limited to basic internet security safeguards.

Bounties Growing

In mid-September of 2020, the Cache Creek Casino Resort in Northern California confirmed it was forced to shutter its gaming and resort operations because of a cyber attack. The tribal casino complex initially told guests that it was closing because of  a “systems infrastructure failure.” The Yocha Dehe Wintun Nation, owners of the resort, later revealed that internet criminals were behind the IT intrusion. The attack kept the casino closed for three weeks.

This year, a cyber attack in Oklahoma resulted in all six Lucky Star Casinos shuttering operations. Tribal officials said they were working with the FBI to resolve the matter after it was determined that cyber hackers were behind the IT outage.

The FBI reports that tribes have spent tens of millions of dollars on ransoms for their IT systems to be restored. Cybercriminals often demand payment in the form of cryptocurrency that is difficult, if not impossible, to trace.

Along with losing out on revenue and conceding bounties to their attackers, ransomware events can result in the theft of personal data on customers and employees, as well as sensitive business information.

Surmounting Danger

FBI Director Christopher Wray says criminal cyber strikes have increased rapidly over the past decade.

Today’s cyber threats are more pervasive, hit바카라사이트

 a wider variety of victims, and carry the potential for greater damage than ever before. That’s why cyber is one of the FBI’s highest priorities. And it’ll stay near the top of our list as long as nation-states and cybercriminal syndicates keep innovating,” Wray s aide said last month during a presentation before the Economic Club of New York.

The FBI boss detailed that the agency is centered on prevention and disruption, and “hitting hackers before they attack or before their intrusions can cause major harm.”

Wray explained that the days of a lone individual sitting in their basement hacking into a computer network are long gone. He revealed that the criminal organizations today are well-run and structured, with “administrators” being the skilled coders, and “affiliates” acting as the front person negotiating bounties with the victims.

The FBI is actively targeting the infrastructure of the cybercriminals in an effort to disable their servers, domains, and botnets. The agency also seeks to trace virtual currencies back to the bad actors.

Wray says businesses concerned with their IT susceptibility should contact their local FBI field office to learn more about how to protect their networks.