Expert: Poker chip case highlights security issue

He says problem gambling in the military could put the U.S. at risk.

Written by Daniel P. Finney
Oct. 1, 2013

The suspension of the No. 2 commanding officer at U.S. Strategic Command for allegedly passing counterfeit poker chips at an Iowa casino represents a “significant threat to national security,” an expert who studies gambling addiction in the U.S. military said Monday.

Last month, Stratcom officials suspended Vice Adm. Tim Giardina, who was second-in-command of the nation’s nuclear arsenal, and recommended the 34-year Navy veteran be reassigned. Stratcom is based at Offutt Air Force Base near Omaha. Giardina has not yet been charged with a crime. He remains stationed at Stratcom, but is banned from any responsibilities related to the nuclear arsenal, military officials said.

Giardina is being investigated by both the Iowa Division of Criminal Investigation and the Navy Criminal Investigative Service related to the introduction of counterfeit poker chips into a poker game at the Horseshoe Casino in Council Bluffs.

“Gambling in the military is a huge problem for national security that the military tries to ignore,” said John Kindt, a University of Illinois professor and author of the 2012 research paper “The Gambling Threat to National and Homeland Security: Internet Gambling.”

Generally speaking, Kindt said impaired judgment creates the biggest threat to national security.

The three biggest spying cases of the last 30 years — those related to former CIA agent Aldrich Ames, former FBI agent Robert Hanssen and former Navy warrant officer John Walker Jr. — all involved U.S. intelligence or military personnel being paid millions for secrets.

“Think about the vulnerability a gambling addict represents in that kind of command,” Kindt said. “If they’re losing money and have dug themselves a big hole, they are more susceptible to agents who are working against the interests of the United States.”

U.S. Department of Defense studies show between 5 and 9 percent of U.S. military personnel have suffered gambling-related problems in their lifetimes. About 2 percent fit the classification of gambling addicts. That is more than double the national average of less than 1 percent.

Recent scientific studies show gambling addicts receive pleasure stimulus in the same areas of the brain as those who are addicted to alcohol and other drugs, said Dr. Donald Black, a University of Iowa psychologist who has done extensive research on gambling addiction.

“The brain response leads to impaired judgment in terms of both their decisions to continue gambling and in other areas of their life,” Black said. “The addiction leads people to make choices they would not otherwise make.”

Iowa investigators remained quiet about the ongoing case involving Giardina. Officials have declined to specify the denominations of chips used in the game or the specific dollar amount. However, DCI Special Agent in Charge David Dales said the amount was “significant.”

Dales said state detectives are waiting for NCIS to finish its investigation before moving forward. Passing a counterfeit poker chip is considered a felony in Iowa punishable by five years imprisonment and a fine up to $7,500.

Iowa Racing and Gaming officials also looked into the case Monday. Their investigation found the Horseshoe Casino in Council Bluffs was not at fault in the incident and had adequate security to detect counterfeiting, said Brian Ohorilko, commission administrator.

“Basically, Horseshoe did everything by the book,” Ohorilko said.

http://www.desmoinesregister.com/article/20131001/NEWS01/310010090/Expert-Poker-chip-case-highlights-security-issue

No. 2 nuke commander won't face charges in Iowa

Oct. 1, 2013 - 02:41PM

 

OMAHA, NEB. — Iowa will take no legal action against the No. 2 officer in charge of U.S. nuclear war-fighting forces who is accused of using counterfeit gambling chips at a casino in the state, officials said Tuesday.

Nonetheless, Navy Vice Adm. Tim Giardina could still face federal charges.

Giardina was suspended Sept. 3 while Naval Criminal Investigative Service examines the allegation that he used $1,500 in counterfeit chips at the Horseshoe Casino in Council Bluffs, Iowa, in June.

Matt Wilbur, the top prosecutor in Iowa’s Pottawattamie County, said Giardina’s lack of a criminal record coupled with his distinguished service to the country makes it very likely he would avoid serious punishment in a state court. But the Defense Department can take action against him under the military code of conduct.

“They assured us they would have the ability to deal with him,” Wilbur said.

Naval Criminal Investigative Service spokesman Ed Buice said a federal investigation is underway but that the agency won’t comment on ongoing investigations.

Giardina officially remains deputy commander at U.S. Strategic Command, which is based at Offutt Air Force Base near Omaha, but is prohibited from performing duties involving nuclear weapons or requiring a security clearance.

Strategic Command oversees the military’s nuclear fighter units, including the Navy’s nuclear-armed submarines and the Air Force’s nuclear bombers and nuclear land-based missiles.

The head of Strategic Command, Air Force Gen. Robert Kehler, has recommended that Defense Secretary Chuck Hagel reassign Giardina.

Before Giardina started his assignment at Strategic Command in December 2011, he was deputy commander and chief of staff at U.S. Pacific Fleet. He is a career submarine officer.

The allegations against Giardina follow two other troubling incidents involving the military’s nuclear establishment.

The nuclear missile unit at Minot Air Force Base, N.D., pulled 17 launch control officers off duty last spring after a problematic inspection and later relieved of duty the officer in charge of training and proficiency.

At Malmstrom Air Force Base, Mont., a nuclear missile unit failed a nuclear safety and security inspection in August. Then an officer in charge of that unit’s security forces was relieved of duty nine days later.

http://www.navytimes.com/article/20131001/NEWS/310010011/No-2-nuke-commander-won-t-face-charges-in-Iowa

No. 2 US nuke commander suspended amid criminal probe

By Laura Italiano and Post Wires

September 28, 2013

Chips ahoy!

The Naval admiral who was the No. 2 officer in charge of all US nuclear weapons is under a criminal probe for allegedly trying to pass a pile of counterfeit chips at an Iowa casino, officials said Saturday.
Navy Vice Adm. Tim Giardina may have had his finger on the button, but his other hand was on a “a significant monetary amount” in bad chips, said special agent David Dales of the Iowa Division of Criminal Investigation.

He has been suspended for the past three weeks from his duties as second-in-command at US Strategic Command, officials said in announcing the startling suspension Saturday.

Omaha-based “STRATCOM” oversees the country’s nuclear-armed bombers, intercontinental missiles and submarines.

Giardina has been under investigation by the Naval Criminal Investigation Service since July, a STRATCOM spokeswoman said.

The career submarine officer is now barred from any duties requiring a security clearance or relating to nuclear weapons, the spokeswoman said.

Iowa investigators stationed at the Horseshoe Casino in Council Bluffs discovered the allegedly chintzy chips.

The matter was serious enough that STRATCOM’s top commander, Air Force Gen. Robert Kehler, reached out to Defense Secretary Chuck Hagel to recommend that Giardina be reassigned pending the investigation, officials said.

White-collar crimes such as embezzlement and fraud are the most common associated with gambling, experts said.

“Gambling, especially Internet gambling, is a huge issue in the military,” said Keith Whyte, executive director of the National Council on Problem Gambling. Military personnel are twice as likely as civilians to have a gambling pathology, he said.


http://nypost.com/2013/09/28/no-2-us-nuke-commander-suspended-amid-probe/

Bill Kearney

Massachusetts ‘Gaming’ Future

I can tell you from my personal experience, you wouldn't want to know what goes through the mind of a casino gambling degenerate. I'd hate to think that someone in charge of nuclear weapons has those thoughts.

Philadelphia Inquirer - September 28, 2013 - No. 2 nuke commander suspended amid casino probe...

The No. 2 officer at the military command in charge of all U.S. nuclear war-fighting forces is suspected in a case involving counterfeit gambling chips at a western Iowa casino and has been suspended from his duties, officials said.

No. 2 nuke commander suspended amid casino probe

This image provided by the U.S. Navy shows Navy Vice Adm. Tim Giardina in a Nov. 11, 2011, photo. The U.S. strategic Command, the military command in charge of all U.S. nuclear warfighting forces says it has suspended its No. 2 commander, Giardina, for unspecific reasons, and he is under investigation by the Naval Criminal Investigative Service. (AP Photo/U.S. Navy)

ROBERT BURNS, The Associated Press

Posted: Saturday, September 28, 2013, 5:10 PM

WASHINGTON (AP) - The No. 2 officer at the military command in charge of all U.S. nuclear war-fighting forces is suspected in a case involving counterfeit gambling chips at a western Iowa casino and has been suspended from his duties, officials said.

Navy Vice Adm. Tim Giardina has not been arrested or charged, Iowa Division of Criminal Investigation special agent David Dales said Saturday. The state investigation is ongoing.

Giardina, deputy commander at U.S. Strategic Command, was suspended on Sept. 3 and is under investigation by the Naval Criminal Investigative Service, a Strategic Command spokeswoman said.

The highly unusual action against a high-ranking officer at Strategic Command was made more than three weeks ago but not publicly announced at that time. The command is located at Offutt Air Force Base near Omaha, Neb.

Air Force Gen. Robert Kehler, who heads Strategic Command, suspended Giardina, according to the command's top spokeswoman, Navy Capt. Pamela Kunze. Giardina is still assigned to the command but is prohibited from performing duties related to nuclear weapons and other issues requiring a security clearance, she said.

Kehler has recommended to Defense Secretary Chuck Hagel that Giardina be reassigned, Kunze said. Giardina has been the deputy commander of Strategic Command since December 2011. He is a career submarine officer and prior to starting his assignment there was the deputy commander and chief of staff at U.S. Pacific Fleet.

DCI agents stationed at the Horseshoe Casino in Council Bluffs, Iowa, discovered the counterfeit chips, Dales said. He would not say when the discovery was made or how much in counterfeit chips was found, only that "it was a significant monetary amount."

Council Bluffs is located across the Missouri River from Omaha.

"We were able to detect this one pretty quickly and jump on it," Dales said. He declined to give specifics on how authorities determined that casino chips had been counterfeited or how Giardina might have been involved.

Strategic Command oversees the military's nuclear fighter units, including the Navy's nuclear-armed submarines and the Air Force's nuclear bombers and nuclear land-based missiles.

Kunze said Strategic Command did not announce the suspension because Giardina remains under investigation and action on Kehler's recommendation that Giardina be reassigned is pending. The suspension was first reported by the Omaha World-Herald.

Kunze said a law enforcement investigation of Giardina began June 16. Kehler became aware of this on July 16, and the following day he asked the Naval Criminal Investigative Service to begin a probe.

The suspension is yet another blow to the military's nuclear establishment. Last spring the nuclear missile unit at Minot Air Force Base, N.D., pulled 17 launch control officers off duty after a problematic inspection and later relieved of duty the officer in charge of training and proficiency.

In August a nuclear missile unit at Malmstrom Air Force Base, Mont., failed a nuclear safety and security inspection; nine days later an officer in charge of the unit's security forces was relieved of duty.

Read more at http://www.philly.com/philly/news/nation_world/20130928_ap_b46bcb10b3f54627a800c18fe2c21914.html#oLzmwUruiH8VJmbT.99

Pennsylvania casinos seeing more counterfeit bills

Pennsylvania casinos seeing more counterfeit bills

Eduardo Sicard Martinez is charged with forgery for allegedly passing counterfeit bills at Sands Casino. (CONTRIBUTED PHOTO, THE MORNING CALL / June 21, 2013)

By Matt Assad, Of The Morning Call

10:17 p.m. EDT, June 21, 2013

Eduardo Sicard Martinez strolled up to the blackjack tables at Sands casino in Bethlehem and, authorities allege, plunked down a stack of bogus $50 bills. He walked out of the casino with a handful of $25 chips, likely believing that he'd successfully laundered the counterfeit bills officials say he'd bought earlier in the night.

What Martinez, of Wernersville, Berks County, may not have realized was that even as he collected his chips, the dealer was marking the bills as suspicious, and a casino surveillance team had security cameras trained on him as he made his way to the parking lot.

If convicted, Martinez, 36, would join a growing number of people trying to pass counterfeit bills at Pennsylvania casinos. And, as it turns out, he'd be part of a small fraction of them who get arrested for it.

Over the past four years, the number of counterfeiting incidents at the state's 11 casinos has more than doubled — to 1,370 in 2012, according to crime numbers reported by state police at each casino.

Still, less than 1 percent of the people passing them are arrested.

 

It's a number state police and U.S. Secret Service are trying to improve.

"Casinos are really the only place where every counterfeit bill is investigated," said Capt. John Evans, state police assistant director for the Bureau of Gaming Enforcement. "The success rate isn't real high, but we continue to do it because we think it's worth it."

The Secret Service attempts to investigate every counterfeiting incident, but there are few places better equipped to trace fake money than a casino. Every casino's counting machine flags any bills that don't have the unique paper, water marks and color-shifting ink of legal tender, and casinos in Pennsylvania have surveillance cameras covering every inch of the gambling floor.

The usual result is the fake money is removed from circulation, but occasionally the casino police actually get the counterfeiter.

In the case of the Sands, where Martinez was arrested April 19, more than 1,000 surveillance cameras are capable of watching almost every movement on the 100,000-square-foot floor. In some cases, the camera feed is so crisp security guards can read the serial number on a bill being passed, said Sgt. Robert Caprari, commander of the state police office at the Sands casino.

Evans said it's not surprising that counterfeiters are trying to pass their fake cash at casinos. Unlike a convenience store cashier who may only see a handful of $100 or $50 bills all day, casino table games dealers routinely takes dozens of large bills every hour. And with casinos taking in massive amounts of cash — Sands counts more than $1 million daily — counterfeiters might think their bills will be lost in the shuffle.

In Martinez's case, state police at the Sands casino allege that he bought the $50 bills earlier in the evening in the hope of laundering them at the blackjack tables. A dealer almost immediately noticed the bills were suspicious and a pit supervisor quickly concurred. By then, police were already looking for Martinez.

That's because over the previous week, he allegedly had passed 31 other fake bills at the tables. When the casino counting machine identified the bills as bogus, officials were able to trace them back to the tables where they were passed. From there, surveillance crews were able to use the overhead cameras to determine who had put them into play.

It's a method Evans said state police hope to use more often, though opportunities have been rare.

"I always say, bank tellers are the best counterfeit detectors we have. They can almost feel bad money in their hands," said Cynthia Wofford, special agent in charge of the Philadelphia office of the Secret Service. "We're trying to get [table games] dealers to that point and I think we're making progress."

There is no shortage of chances to apply that training. According to the self-reported crime numbers, counterfeiting incidents at Pennsylvania casinos went from 610 in 2009 to 1,370 last year. That includes 141 incidents at Sands last year.

"It's almost daily," Caprari said. "Sometimes a dealer will catch it, but usually the counting machines catch it."

Sometimes, it's a single bill likely passed by someone who didn't even know it was fake, Evans said. Other times it's a series of bills passed by someone like Martinez, who police say told them he had bought the money from a counterfeiter at half face value. The dozens of bills officials say he passed had only three different serial numbers, a tell-tale sign of a fake.

Other signs include paper that's not the 75 percent linen, 25 percent cotton paper combination used by the U.S. Mint, or lacks the embedded polyester threads, or the water mark or the security mark that reveals a colored thread when held under ultraviolet light.

Casino counting machines detect all of those flaws. In the future, dealers may learn to detect many of them.

In the meantime, Caprari is hoping the fate of Eduardo Sicard Martinez will send a message to would-be counterfeiters. His case is expected to be heard in Northampton County Court this year. He faces a maximum of 10 years in prison for each of the 31 counts of forgery he's charged with.

Read more: http://www.mcall.com/news/local/mc-pa-casino-counterfeit-bills-20130620-25,0,6109801.story#ixzz2WuaQRj6R
Follow us: @mcall on Twitter | mcall.lv on Facebook

Increased DUIs surrounding Bethlehem Slot Barn

Local Police Chiefs, Investigator Discuss Crime and Public Safety
Lower Saucon Township

Chiefs Robert Shupp and Guy Lesser and Police Investigator Christopher Leidy were joint presenters at a recent Hellertown-Lower Saucon Chamber of Commerce breakfast.
By Josh Popichak

Called "Protecting Our Community," the updates by the chiefs covered everything from crime-related casino impacts in Hellertown to identity theft.

Overall, Lesser said, Lower Saucon Township remains a safe community, seemingly removed from the crime and chaos of more urban areas nearby.

Shupp focused his portion of the presentation on discussing how the opening of the Sands casino in Bethlehem has changed policing in Hellertown during his tenure.

Crimes that were rare or unknown just a couple of years ago are beginning to become more commonplace, he explained.

As an example, Shupp said the Borough of Hellertown no longer accepts $100 bills in its office, because they had begun to receive counterfeit $100 notes from "people from out of town."

DUI arrests have increased since the casino's opening, he said, "I'm assuming, because the casino serves free alcohol."


"FREE ALCOHOL" has become a hallmark of Slot Barns everywhere, making innocent people potential victims of drunk drivers. It is known that people gamble more with increased alcohol consumption eliminating sensible decision-making.

"We're starting to see drugs coming in and in larger quantities," he also noted.

According to Shupp, narcotics arrests in Hellertown have increased 190 percent since the casino's opening.

To offset the increases in crime and threats to public safety, the Hellertown Police Department was the recipient of several grants from the Northampton County Gaming Revenue and Economic Redevelopment Authority late last year.

The grant money has been used to hire two more police officers, to purchase a new cruiser and for training purposes, Shupp said.

In particular, he praised the grant money that is paying for training.

"That was just outstanding," he said. "That's training our officers never would have received. We never could have afforded it."

Gambling Revenues paid for increased law enforcement necessary because of the Bethlehem Slot Barn. Interesting!


Simple, common-sense steps to take include shredding personal and financial documents; refusing to give out confidential information over the phone; and calling the police if something suspicious occurs.

Unfortunately, elderly residents are often the target for individuals attempting to commit identity theft, Leidy said.

Some of the cases the Lower Saucon Police Department has investigated have involved individuals from as far away as California and Nevada, he noted.