The Normandie Casino of California has been under investigation by the federal authorities due to high rolling players having the ability to doge reporting their financials. There are strict requirements for reporting financials as one gambles at the casino and Normandie apparently allowed certain visitors to pass by these restrictions.
The Los Angeles Times reported on Friday that the owners of the casino pled guilty to being in violation of the Bank Secrecy Act. The venue is accused to not adequately documenting several large-scale transactions that date back to 2013.
Court documents were revealed in the Times report, showing that the Normandie Casino had been able to cut a plea deal which would require the venue to forfeit $1.3m in earnings that were related to the transactions. The managing partners of the casino will then have to pay an additional $1m in federal fines due to their decision making in regards to the financial reports.
The transgressions of the casino property, according to court documents, include the staff at the casino helping patrons to avoid reporting their financials that are required by law by splitting the high-value transactions into a smaller amount. Doing this would allow the $10k reporting threshold to be avoided. The casino did not flag the cash transactions and the federal government had reason to suspect that the failure to flag the transactions were due to money laundering.
A single player reportedly won over $1m while at the casino within a six week time frame, that the casino did not report the identifying information on the individual. Instead of the actual gamblers, the staff decided to enter the names of the independent gaming promoters.
This is the second gaming venue of California to be investigated by the federal government in regards to financials in just a few months. Back in December, the Oaks Card Club was forced to pay $650,000 for similar violations by the United States Department of Financial Crimes Enforcement Network due to being in violation of the Bank Secrecy Act.