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Casino Agrees to $5.3 Million Penalty for Failing to Disclose Bank Secrecy Act Violations to Gambling Regulators

  • The California Department of Justice reached a settlement with casino operator Artichoke Joe’s and related entities and individuals (collectively, “Artichoke Joe’s”) to resolve allegations that it misled gambling regulators and failed to disclose admitted violations of the federal Bank Secrecy Act in violation of the California Gambling Control Act.
  • The second amended accusation filed with the California Gambling Commission alleged that Artichoke Joe’s Casino failed to inform gambling regulators of a federal Financial Crimes Enforcement Network  investigation that led to the casino’s admission of failing to implement and maintain an effective anti-money laundering program, and failing to detect, deter, and timely report many suspicious transactions such as loan-sharking.
  • Under the terms of the settlement, Artichoke Joe’s will pay a penalty of $5.3 million and $50,000 in costs to the Bureau of Gambling Control. In addition, Artichoke Joe’s gambling license will be contingent upon meeting the terms of the settlement, including implementing an anti-money laundering program, hiring an independent consultant to review the anti-money laundering program, and certifying in writing its compliance with the terms of the agreement every 90 days, among other things.