With the probability of big payouts at Connecticut casinos, the facilities should be diligent about preventing and reporting illegal activities like money laundering.
There have been several money laundering scams involving Mohegan Sun and Foxwoods Resort Casino recently, but Connecticut casinos continue to work with police and government departments to prevent this.
“ Negative Vegan” brands CT casinos’ involuntary participation in the scandal
Earlier this year, Netflix came out with “Bad Vegan.” Through this true-crime documentary, the world witnessed how easily a conman could steal millions to finance a gambling addiction.
The impact of celebrity restaurateur Sarma Melngailis’ relationship with serial conman Anthony Strangis was nothing short of devastating. Estimates claim Strangis embezzled up to $2 million from Melngailis and her investors.
Strangis had a severe gambling addiction that appeared to be uncontrollable. He reportedly lost around $200K of Melngailis’ money at Mohegan Sun. And if that wasn’t enough, an additional whopping $1 million at Foxwoods Resort Casino.
The illegal fund transfers and gambling losses resulted in Melngailis failing to pay her employees’ wages, and taxes went unpaid. The couple eventually went on the run to evade the authorities.
Both Strangis and Melngailis found themselves arrested in 2016, facing charges of grand larceny. They were also charged with tax fraud, labor law violations, and several other crimes.
Nevertheless wait- there’s a lot more
While “Bad Vegan” certainly shed a public light on financial crimes involving Connecticut casinos, this wasn’t the only time Mohegan Sun and Foxwoods found themselves at the center of similar scams.
Connecticut consultant Michael DiMassa also found himself incarcerated in October 2021 on suspicion of wire fraud. The state lawmaker faced accusations of stealing COVID relief funds issued through the CARES Act.
DiMassa allegedly created Compass Investment Group LLC to pose as a coronavirus response company for the city of New Haven to obtain relief funds. While expenses were recorded in the ledger and credited to the LLC, no services were provided.
The criminal complaint filed accuses DiMassa of withdrawing money from the LLC and using it to gamble at Mohegan Sun. He purchased over $57,500 in poker chips at the casino in May of 2021 alone.
“If Representative DiMassa violated the public’s trust and his oath to protect and serve his constituents and is found guilty of fraudulent activity,” said West Haven Mayor Nancy Rossi in a statement, “we are demanding that he and any other individuals involved be held accountable and prosecuted to the full extent of the law.”
In 2016, Rochelle Poszeluznyj, formerly an employee of Mohegan Sun, was charged with engaging in a money-laundering conspiracy at the casino while employed there.
Poszeluznyj allegedly stole casino patrons’ names and PIN numbers from their casino loyalty club cards. Co-conspirators Robert Pellegrini and Mark Heltzel then used the stolen information provided by Poszeluznyj for their own gain.
They created duplicate player accounts, loaded them with free player credits, and used them for their own gambling purposes at the casino. When everything came to light, the accused obtained $422,147 in fraudulent winnings.
Exactly what preventative steps do COMPUTERTOMOGRAFIE casinos exercise?
Casinos within Connecticut stick to state restrictions closely in order to both acknowledge and document activities which can be suspected to become illegal.
Connecticut casinos’ confirming requirements
Based on federal regulations, casinos must keep detailed records of significant transactions. They must also report any financial transactions to the IRS exceeding $10,000.
Casinos are also required to report suspicious activity to the Financial Crimes Enforcement Network (FinCEN), which is the office of the US Department of the Treasury. Suspicious activity includes transactions that:
- Include money obtained from unlawful activities
- Are trying to disguise cash gained coming from illicit routines
- Attempt to avert Bank Secrecy Act needs
Teaching CT online casino employees to identify illegal exercise
Like Foxwoods Resort Casino in Connecticut, many casinos are taking fraud prevention one step further by training employees to recognize it.
Foxwoods has partnered with Vector Solutions to implement online training for Anti-Money Laundering (AML) Compliance for the casino’s employees.
“Online training makes getting the necessary information out to our teams in a more cost-effective and efficient way,” said Joseph Busby, Chief Compliance Officer at Foxwoods.
The fraudulent activities of criminals may continue to emerge in the gambling scene. However, Connecticut casinos are working hard to identify, report, and ultimately prevent such activities in the future.
