Huge dip in $5,000 casino chips
Disappearance led to recall, meetings about possible questionable use
A large number of $5,000 chips disappeared from River Rock Casino, raising concerns about public safety and an alleged underground economy connected to illegal casinos in Richmond, according to documents obtained by Postmedia News.
The documents, which are redacted to protect police investigations, were released to Postmedia in the third phase of a freedom-of-information disclosure.
They say that in 2016, after “an unusually high number of $5,000 poker chips went missing from River Rock Casino, (this) prompted (the B.C. Lottery Corporation) to initiate a wholesale chips exchange.”
The documents say the large volume of missing River Rock chips risked the integrity of BCLC casinos, but a confidential plan to replace the chips was delayed and there were concerns of an information leak between the BCLC and River Rock staff.
The issue became a priority for BCLC anti-money laundering staff throughout 2015, when “River Rock experienced an increase in patrons leaving with large quantities of $5,000 chips,” documents say. “BCLC believed the high number of outstanding River Rock Casino chips posed a personal risk to the safety of those in possession of large quantities of these chips.”
The BCLC eventually completed a recall of $5,000 chips at River Rock in January 2016. Most of the chips had been taken from high-limit betting rooms.
VIP gamblers were presented with cash or new chips in exchange for the old casino currency.
However, a recall that had been planned for September 2015 was delayed for “operational” reasons and “cancelled at the last minute,” the documents say.
River Rock Casino staff were concerned about the chip swap for various reasons, including the potential for upsetting VIP gamblers, the documents say.
An internal email sent Dec. 30, 2015, among BCLC staff says corporate compliance executive Rob Kroeker also had concerns as a result of a phone call from a person whose name was redacted from documents.
“It appears that the chip swap information is floating around the River Rock Casino, for (an) end-of-January date,” the BCLC email says. “(Kroeker) is concerned that we have a leak that would have released this information. Can you advise who is aware of this project from our end or that you have communicated this to?”
BCLC brass had been concerned about more than just missing chips at River Rock, internal documents obtained by Postmedia show.
The documents say BCLC executives met with executives from River Rock operator Great Canadian Gaming Corp. in October and November 2014 to discuss problems of extremely large cash deliveries, $5,000 chips leaving the casino and an alleged network of VIP gamblers from China using “large volumes of unsourced casino value chips at River Rock Casino.”
The documents allege these unsourced chips were delivered by the lender network of Paul King Jin. Later in 2015, Jin’s network became central to RCMP’s E-Pirate investigation into allegations of transnational money laundering targeting B.C. casinos.
River Rock management present at these late 2014 meetings regarding Jin’s network and unsourced chip allegations included Kroeker, Great Canadian chief operating officer Terrance Doyle and VIP program manager Walter Soo, according to documents. Later in 2015, Kroeker became the BCLC’s vice-president of corporate security and compliance.
Internal BCLC records also make it clear the gambling regulator was concerned that outstanding River Rock $5,000 chips were allegedly used to fund illegal gambling and an underground economy in B.C. These records also point to tension with B.C.’s gaming policy enforcement branch. In mid-2015, records say, when branch investigators became aware of the need for a chip recall, they accused BCLC staff of not notifying them earlier of a problem the branch viewed as important to the integrity of BCLC casinos.
Ministry of Finance records from 2016 and 2017 make the connection between BCLC casino chips, organized crime and illegal casinos. The records say B.C.’s new Joint Illegal Gaming Unit continues to investigate the use of BCLC casino chips in illegal casinos. And ongoing investigations have alleged that high-level organized crime networks in B.C. with ties to mainland China are using illegal gambling houses in Richmond and BCLC casinos to launder money for drug traffickers.
Meanwhile, a B.C. Supreme Court case alleges a connection between Jin’s network and an illegal casino in Richmond.
In the case, the plaintiff, Jin, claims that in December 2015, he loaned Richmond property owner Xiaobing Liu $2.68 million. Jin’s claim says the loan was to be repaid in one month, and Liu agreed to “pay periodic interest to the plaintiff as agreed upon by the parties.”
Liu did not repay the loan, according to the claim, and Jin seeks a judgment for the debt.
However, in an October 2017 response, Liu said that in December 2015, he “attended an illegal casino in Richmond, and was provided by the illegal casino its own gambling chips.”
Liu denies knowing Jin, or having any loan agreement with Jin.
“The defendant was asked by a female employee of the illegal casino to sign a document,” the response says, “as a receipt for the gambling chips.”
“At no time did the defendant intend or understand that a loan agreement … was being entered into with the plaintiff … at no time did the defendant borrow or receive any moneys from the plaintiff,” the response says.
The case has not been resolved.