In Minnesota, five of the six most prolific alleged embezzlers last year were women, according to the 2011 Marquet Report on Embezzlement. The U.S. Sentencing Commission says that embezzlement is the only offense nationwide where women outnumber men. The Boston-based Marquet Report, which analyzes prominent embezzlement cases with losses of more than $100,000, found that women made up 64 percent of the alleged perpetrators nationwide. Motive and opportunity are the main reasons to why women are embezzling, and in 2011, 22 percent of embezzlement cases were directly motivated by gambling.
Crime
U.S. Treasury Warns Casinos for Facilitating Money Laundering By Criminal Rings
The U.S. Treasury Department is urging casinos to take steps to combat money laundering in their sports books. Regulators and law enforcement authorities are concerned by intelligence suggesting that criminals are making bets with legal sports book operations, using intermediaries, or “runners,” to place bets, the Treasury bureau said.
“In these cases, the intermediaries rarely voluntarily disclose to the casino that a transaction is being conducted on behalf of a third party, thereby disguising the third party’s role in the transaction and obscuring the source of funds used to place the bet. This poses distinct money laundering risks for casinos,” FinCEN said in the letter.
Sports gambling is legal in only four U.S. states including Nevada. However, illegal sports betting operations around the world, including online outfits, sometimes offset bets they receive by placing casino wagers, law enforcement sources told Thomson Reuters.
Runners have been known to loiter at casinos, keeping numerous mobile phones and tablets near them to receive orders from illegal gambling rings.
The letter reminds casinos that the Bank Secrecy Act requires them to ask gamblers whether their bets are for themselves, and to report any wagers for third parties as suspicious activity.
Casinos get strong warning for perpetrating financial crimes
According to this story from the Las Vegas Review-Journal, “Casinos have long reaped profits from what can politely be described as plausible deniability when it comes to identifying the source of their large cash customers’ income.” Jennifer Shasky Calvery, director of the Financial Crimes Enforcement Network (FinCEN), wants to put a stop to that. In a speech at the annual gambling trade show, G2E, Shaky Calvery called for a cultural change inside the casino business to root out and stop financial crimes, such as money laundering. This comes as an ominous warning for casinos, who often benefit from some shady deals.
Slots used to launder money from drug sales
This article from The Topeka Capital-Journal details the arrest of five Kansas residents after they used slot machines in Kansas City, Kansas to launder $200,000 from marijuana sales. According to the article, “The office of U.S. Attorney for Kansas Barry Grissom said Wednesday that investigations showed some members of the group would deposit large sums of money in small denominations into casino slots, cash out without playing and receive a voucher for the money deposited, then cash the voucher at ATM machines throughout the casino, getting their cash back in large denominations.” These residents have been indicted on 12 counts including money laundering and conspiracy to distribute marijuana.
Embezzlement is on the rise as problem gambling grows
As this article by the Observer-Reporter explains, many white-collar workers with access to tens of thousands of dollars of company funds embezzle this money to fund their gambling addictions. It’s a growing problem in Pennsylvania, and shows how problem gambling drives some to break the law to fuel their addiction.
How gambling addictions lead to embezzlement and other crime
This article from Post-Crescent Media recounts examples of how regular, everyday, law-abiding citizens can turn into embezzling criminals when their gambling addictions drive them to do so. In one case, an employee embezzled a half of a million dollars to finance her gambling from the Wisconsin non-profit Goodwill Industries. It just goes to show what happens to the conscience of an average person when they develop a gambling addiction.
Presence of casinos in Macau leads to major money laundering
Macau, a city known for its many casinos and large gambling industry, is now attracting money laundering in rates much higher than the rest of the world. According to this article by the South China Morning Post, “The significance of… gaming in Macau drives the significance of money laundering in the local marketplace.” Big casino industry in cities offers an enticing opportunity for those looking to launder money, another example of crime that follows casinos.
Italian mafia uses German online gambling sites for money laundering
This article from Deutsche Welle examines the use of German online gambling sites by Italian mafia members for transferring money made by human trafficking and drugs into legal circulation. Due to unclear laws, the police are powerless to stop the situation, as more and more illegal money exchanges hands over the internet. A prominent Italian lawyer described the “unbelievable” sums of money flowing through internet gambling, which could total almost $2 billion.
10 reasons why lotteries are bad for the economy
This article from Salon.com outlines the ten strongest reasons why state lotteries hurt the economy and the poor. It explains how lotteries not only hurt those who play, but also hurt local business and help foster crime.
Regions With Casinos See Increase Sex Trafficking Among Minors
One of the effects of regional casinos is the sex trafficking of minors. This atrocity is garnering more and more attention nationwide as the number of children affected increases.
Increase in sex trafficking of minors getting local, state attention