Loans, drugs at center of casino busts

Loans, drugs at center of casino busts
By Bill Silverfarb
Daily Journal staff


Federal investigators arrested Wednesday 14 of 15 people sought in connection with racketeering charges and distributing methamphetamine at two Bay Area casinos, including Artichoke Joe’s in San Bruno.


The suspects are charged with racketeering, loan sharking and drug sales, among other charges and acted independently from casino ownership. Many of the defendants offered casino chips as loans, according to an indictment unsealed yesterday. Only four of the 15 sought in the investigation actually worked for either casino, U.S. Attorney Melinda Haag wrote in the indictment.


During the course of executing about 20 search warrants Wednesday, agents seized several hundred thousand dollars in cash and thousands of dollars worth of casino gambling chips, jewelry and valuables, several pounds of narcotics and numerous firearms, according to the U.S. Department of Justice.


Arrested were Cuong Mach Binh Tieu, Lap The Chung, Bob Yuen, Ding Lin, Skyler Chang, Chea Bou, May Chung, Hung Tieu, Thanh The Chu, Kwai Ping Wong, John Hinyu Chew, Bao Tran, Bao Hung Phung and Billy Ket Chau, according to the indictment.


The defendants referred to themselves as “one family” and the enterprise worked collectively out of the Asian gaming sections of the two casinos. Most members of the enterprise primarily worked at and through one casino or the other, according to the indictment.


Many of the defendants did not work at either casino and Cuong Mach Binh Tieu appears to be the ringleader. Many of the defendants also have multiple aliases, according to the indictment.


The Oaks Card Club in Emeryville was also raided Wednesday as well as several residences throughout the Bay Area, including a home in Belmont.


The charges stem back to activity starting in 2008, according to the indictment.


Some of the conspirators’ victims were given $5,000 and $10,000 loans at 10 percent interest per week and were threatened with physical violence if the payments were late, according to the indictment.


Some of the defendants are also being charged with distributing cocaine and Ecstasy. They are all being charged with the Racketeer Influenced and Corrupt Organizations Act, or RICO crimes.


The indictment is the result of an approximately two-year investigation led by the FBI and the Drug Enforcement Administration who worked together with the California Department of Justice, Bureau of Gambling Control and the Internal Revenue Service.


Some of the charges carry 20 year prison terms and Cuong Mach Binh Tieu is charged with 10 counts in total and faces a total of 140 years in prison if convicted on all charges.


Artichoke Joe’s remained closed yesterday and officials were not sure when it would reopen. Calls to management were not successful. The casino did contribute $1,452,267 in taxes to the city in 2009 but that amount is based on the number of gaming tables it has and must be paid whether the casino is open or not.