Employer Blames Casino for $4 Million Embezzlement

The Predators have access to your financial records, know your income, know that you are exceeding your personal funds.

Why are they allowed to keep stolen funds? Is this racketeering?

NoPlainvilleRacino

Employer Blames Casino for $4 Million Embezzlement

By CAMERON LANGFORD

 

(CN) - A candy wholesaler sued an Ameristar casino for $4 million, claiming it "enticed and enabled" a worker who embezzled the money and blew it on slot machines.

Colombo Candy & Tobacco Wholesale Co. dba Colombo Distribution sued Ameristar Casino Council Bluffs in Douglas County Court, Tulsa.

It claims its employee, Jane Doe, blew more than $3 million of the $4 million she embezzled at the Ameristar casino in Council Bluffs, Iowa.

Colombo claims Doe worked as its controller from July 2010 to July 2012. Doe, who is not a party to the case, was in charge of all company finances until it discovered her massive theft and fired her, Colombo says in the complaint.

"Doe accomplished her embezzlement by taking advantage of her position
as controller to, among other things, inflate inventory and accounts receivable, and manipulate payroll," the complaint states. "Doe used Automated Clearing House ('ACH') transactions to deposit the embezzled funds into Doe's own accounts, against which she then cashed checks at Ameristar, made cash withdrawals at Ameristar and otherwise transferred the money to Ameristar.

"Doe has entered into a settlement agreement that admits to the embezzlement from plaintiff, and admits to liability to plaintiff. Doe has signed a Stipulation for Judgment and a Judgment by

Confession granting plaintiff a judgment against Doe in the amount of four million ninety-nine thousand four-hundred one and 55/100 dollars ($4,099,401.55). Doe cannot repay the amount embezzled or stolen from plaintiff.

"Doe's annual salary from plaintiff was only approximately $62,000 per year. Yet in 2011 alone, Doe lost in excess of $1,750,000 to Ameristar.

"Ameristar knew the money Doe was using to gamble was embezzled or stolen or had information that would lead a reasonable person to believe the money Doe was using to gamble was embezzled or stolen."

Colombo Candy claims the casino regularly cashed $10,000 checks for Doe.

"For example, within the two-week period between February 22, 2011 and March 7, 2011, Ameristar cashed 16 checks for $10,000 each, for a total of $160,000. Over the Labor Day weekend of 2011, Ameristar cashed checks totaling $100,000 for Doe," the complaint states.

"Ameristar patrons specifically asked Ameristar cashiers what the source of Doe's funding was.
"Ameristar deliberately closed its eyes to the source of Doe's funding that Doe transferred to

 

Ameristar in order to gamble, in order to avoid meaningful exposure to information that would have provided Ameristar with knowledge of Doe's embezzlement of Plaintiff's money."

Impressed by Doe's big spending, Colombo says, the casino treated her like a VIP.

"Ameristar gave special privileges to Doe, including permitting her to go behind the cashier's 'cage' where patrons generally are not permitted in order to obtain cash. Doe would routinely obtain cash in $10,000 increments several times a night.

"Ameristar deliberately acquired video-slot machines to induce protracted high-risk gambling for Doe, modifying particular video-slot machines specifically for Doe on at least three occasions to increase the amount of money Doe could spend on a single 'spin' or game. Ameristar, on at least one occasion, upon getting a new or modified machine, called Doe and held the machine 'off limits' to other patrons until Doe could be the first to play it.

"Ameristar's video-slot machines are designed to create and enhance an illusion of control over the outcome of the 'spin' or 'game played,' and Ameristar actively encouraged that belief by pointing out to Doe which machines had recently paid out a 'jackpot.'

"Ameristar knew which video-slot machines were set to pay out at specific return rates and on multiple occasions Ameristar staff tipped off, or otherwise advised and steered Doe toward specific video-slot machines to play or avoid.

"Ameristar staff would, when Doe was losing money at a particular machine, direct her to another machine where she usually had a prompt 'win.' Ameristar staff would give machines Doe was using a 'rub' for luck.

"Ameristar staff would watch Doe gamble, including the cashiers who would leave the 'cage' to watch. Ameristar used multiple versions of the same 'game' with different 'pay-back' percentages, concealed from Doe and distorting her understanding of how the machines work.

"Ameristar employees would guard machines Doe was using so that she could leave to use the bathroom and come back to the same machines."

Colombo claims that Doe became so notorious at the casino that its "floor staff would monitor Doe's gambling to predict when she would next be coming in, and seek to change their own work schedules so as to be working when Doe was gambling in order to personally profit from her tips."
Ameristar cashed $3 million in checks for Doe in 2011 alone, Colombo claims.

Although the casino "has policies and procedures to detect and aid problem gamblers," and knew Doe was a problem gambler, it "intentionally ignored its own policies, and intentionally refused to talk to Doe about her problem gambling," according to the complaint.

"Ameristar's excessive and extraordinary inducement of Doe to gamble, Ameristar's willful blindness to the source of Doe's funds she used for gambling, and Ameristar's failure to follow its own policies caused or substantially contributed to Doe's embezzlement from plaintiff and plaintiff's transfer of funds to Ameristar," the complaint states.

Colombo Candy seeks restitution, an accounting of all the money Doe blew at the casino, and damages for aiding and abetting, fraudulent transfer and unjust enrichment.

     It is represented by Jill Robb Ackerman with Baird Holm of Omaha, Neb.

 

http://www.courthousenews.com/2013/04/12/56639.htm

 

 

 

Taj Mahal Murder Jury Views Videos

The edifice that stands as testament to Donald Trump's massive ego and poor business management skills, was the site of 2 fatal carjackings caused by management failure to assure patron safety.

Bright lights, an elegant facade and adornment disguise the criminals attracted to Gambling venues.

The trial is underway for the first victim who had planned to celebrate his daughter's birthday.

Jurors in A.C. kidnap-murder case see video
By George Anastasia
Inquirer Staff Writer
Posted: Thu, Apr. 12, 2012

MAYS LANDING, N.J. - Jurors in the Trump Taj Mahal Casino-Hotel kidnapping-murder case got another look Wednesday at Jessica Kisby when the prosecution played a surveillance video of the admitted murderer shoplifting medical supplies from a Kmart in Pleasantville on May 24, 2010.

On Tuesday, other surveillance footage played for the Atlantic County jury placed her in the casino garage confronting North Jersey grocer Martin Caballero at the time he was carjacked. It later showed her at an Exxon station buying a 5-gallon can of gasoline that authorities say was used to torch Caballero's Lincoln MKS hours after he was killed May 21, 2010.

Next week, the jury will likely see Kisby in person.

The slender, dark-haired 26-year-old is the key prosecution witness in the case against her former boyfriend, Craig Arno.

Together, authorities say, the couple launched a bumbling but brutal eight-day crime rampage that included the kidnapping and murder of Caballero, 47, who had come with family members to the Taj Mahal on May 21 to celebrate the 22d birthday of his daughter.

Arno, 46, faces a life sentence if convicted of the murder charge. He also faces kidnapping, carjacking, arson, and related charges.

Kisby pleaded guilty to murder and kidnapping charges on Feb. 14, agreeing to testify in a plea deal that mandates that she receive a 30-year prison sentence with no parole eligibility.

When she takes the stand next week it will be the first time she and Arno have come face to face since she agreed to cooperate. At her plea hearing, she said Arno stabbed Caballero repeatedly before they dumped his body along a dirt farm road in nearby Hamilton Township.

The video from the Kmart offered a different look at their relationship. In it, a man authorities identified as Arno is seen brandishing a knife at two store employees who stopped Kisby as she was trying to leave the store with bandages and ointment she had stuffed into her pockets.

The medication was apparently needed to treat Arno for burns to his hand, face, and neck, injuries he apparently sustained when caught in a blowback after setting Caballero's car on fire.

The car was found in Blackwood, Gloucester Township, in the early hours of May 22, 2010.

Christopher Evans, a loss-prevention agent at the Kmart, identified Arno as the man who tried to slash a store security guard and who warned him and others to "get back" as he waved a knife as he and Kisby fled the store and then drove away in a silver Toyota.

Earlier surveillance from the carjacking showed a silver Toyota following Caballero's Lincoln into the garage and following it out after authorities said Arno had used a pellet gun to abduct Caballero.

When Arno's court-appointed attorney, Eric Shenkus, tried to challenge him on his identification of Arno as the man with the knife, Evans said he identified Arno and Kisby as the couple after spotting their pictures in news reports following their arrests on May 28 in the carjacking case. He said he notified police and then identified them again from photos he was shown.

Kisby is expected to provide a firsthand account of the crimes when she takes the stand.

To date, First Atlantic County Prosecutor James McClain has used video surveillance footage and witness testimony to track the couple from the moment they confronted Caballero in the parking garage to their arrest eight days later at the Golden Key Motel outside Atlantic City.

The couple were hiding out in the motel, authorities say, after a botched attempt to steal a minivan and flee the city May 26.

The trial before Superior Court Judge Michael J. Donio resumes Thursday with an abbreviated session and will resume again Monday, when Kisby may be called.

Donio told the jurors Wednesday that the trial was ahead of schedule and said he believed closing arguments and jury deliberation could begin about April 24. Originally, jurors had been told the trial would last five to six weeks.

Taj Mahal failed to keep patron safe

Courtesy of Bill Kearney:




Opening arguments in fatal casino carjack case

MAYS LANDING, N.J. (AP) - Opening arguments started Monday in the trial of a man accused in the fatal carjacking of an Atlantic City casino patron two years ago, with prosecutors detailing the "brutal nature" of the victim's death.

Craig Arno faces 28 counts - including murder, carjacking and three counts of felony murder - in the death of 47-year-old Martin Caballero of North Bergen. He could face a life sentence if convicted.

Atlantic County prosecutors say Arno and his girlfriend, Jessica Kisby, who has pleaded guilty, carjacked Caballero in the parking garage of the Trump Taj Mahal casino in May 2010 and stabbed him to death. Caballero's burning vehicle was found early the next day, and his remains were found several days later in a farmer's field about 30 minutes west of Atlantic City.

The random attack occurred just moments after Caballero dropped his family off at the casino to celebrate his daughter's 21st birthday.

Prosecutors told jurors that Arno wanted the 2009 Lincoln MKS that Caballero had parked in a secluded spot, hoping to keep his prized possession away from harm. But public defender Eric Shenkus said there's not enough evidence to prove Arno is guilty.

Kisby is expected to testify during the trial, though it's not clear when that may happen.

She pleaded guilty in February to murder, carjacking, auto theft, aggravated arson and three weapons offenses. The plea deal calls for prosecutors to recommend the 30-year sentence on the murder charge, with sentencing on the other charges to be determined by the judge.

Kisby will not be sentenced until after Arno's trial concludes. And if prosecutors determine she did not testify truthfully, they can revoke the plea deal.

What should have been a birthday celebration turned into a funeral because of the failure of the Taj Mahl to keep its patrons safe:




From: Taj Mahal Birthday Celebration Turned Fatal

The couple are accused of the May 2010 abduction and slaying of Martin Caballero, a North Jersey grocer who planned to spend a Friday night with family at the Taj Mahal and ended up stabbed to death, his body dumped along a dirt road.

Kisby and Arno, who had met in prison months earlier, have been described by investigators as a brutal but bumbling Bonnie and Clyde who left a trail of circumstantial evidence that has been used to build the case against them.

The killing of Caballero was part of a crime spree that began with an armed robbery the day before and included kidnapping, assault, murder, car theft, and a botched attempt to flee Atlantic City in a stolen SUV, authorities said.

The crimes were detailed in a 39-count indictment handed up against them in April. Kisby now is prepared to add a first-person account of the events. Last week, she described the slaying of Caballero, 47, as a robbery gone bad.

Arno, she said, stabbed Caballero repeatedly. So many times, she told Atlantic County Superior Court Judge Michael Donio, "I really can't count. . . . It was numerous," according to a report in the Press of Atlantic City.

Caballero was targeted, Kisby said, because he drove "a nice car."

"We figured he had some money," said Kisby, who said she and Arno were in the garage when they saw their mark pull in behind the wheel of a 2009 silver Lincoln MKS.

Caballero, from North Bergen in Hudson County, had just dropped off his wife and daughter at the Taj entrance. They and relatives planned to celebrate the Caballeros' daughter's 21st birthday.

Kisby's confession, delivered coincidentally on Valentine's Day, includes a detailed account of criminal events that began in the Taj Mahal garage the night of May 21 and ended with Kisby's and Arno's arrests in a seedy motel seven days later.

Additional: Taj Mahal

Filling our prisons with gambling addicts

Massachusetts has not yet opened a Slot Barn, yet we are already funding the crimes of Gambling Addicts.

Note in the articles below, the source of Gambling Addiction is not specified. Why?

Mass. man admits to stealing from synagogue
April 11, 2012

WORCESTER, Mass.—A Worcester man has been sentenced to up to five years in prison after pleading guilty to stealing tens of thousands of dollars' worth of religious artifacts from a synagogue where he worked as a custodian.

Prosecutors say 29-year-old Donald Spencer III sold the gold and silver items for money to support a gambling addiction.

He was sentenced Tuesday in Worcester Superior Court.

The items included Torah shields, a Havdalah spice container and tower and a Kiddush goblet. Synagogue officials estimated their value at more than $70,000.

Investigators were told many of the artifacts were irreplaceable, and some had been recovered from Nazi Germany. Some were returned to Temple Emanuel by police, but most were melted down.

The Telegram & Gazette (http://bit.ly/IkvFGo) reports that Spencer's lawyer requested a lighter sentence.


Prison for temple thief
By Gary V. Murray TELEGRAM & GAZETTE STAFF

WORCESTER — A city man was sentenced to state prison yesterday after admitting in court that he stole tens of thousands of dollars worth of religious artifacts from a local synagogue and pawned them for money to support his gambling addiction.

Donald E. Spencer III, 29, of 42 Stebbins St., was adjudicated a common and notorious thief and sentenced to 4 to 5 years in state prison yesterdayafter pleading guilty in Worcester Superior Court to 10 counts of larceny of more than $250, and four counts of larceny of less than $250.

Assistant District Attorney John A. O’Leary told Judge James R. Lemire that Mr. Spencer stole religious artifacts made of gold and sterling silver last year from Temple Emanuel at 280 May St., where he was employed as a custodian, and sold the items at the Gold Buyers, a pawnshop at 750 Grafton St.

The items included Torah shields, crowns and pointers, a Havdalah spice container and tower and a Kiddush goblet, which were appraised at a total value of more than $30,000 in 2004, according to a police report in the case.

Investigators were told many of the artifacts were irreplaceable, and some had been recovered from Nazi Germany. Some were returned to Temple Emanuel by police, but most were melted down for scrap, according to the report.

Mr. O’Leary said police went to the pawnshop Nov. 17 after a member of Temple Emanuel reported seeing items for sale there that appeared to have been stolen from the synagogue.

Investigators were told that Mr. Spencer had been selling damaged or crushed gold and silver items to the store for a period of time. Store employees said Mr. Spencer told them he was a rubbish man and came into possession of the items while cleaning out a former church.

When confronted by police, Mr. Spencer admitted stealing the artifacts and pawning them in exchange for cash, according to Mr. O’Leary. Another police report in the case indicates he also admitted crushing some of the items before selling them as scrap metal.

Temple Emanuel officials said 31 artifacts with an estimated value of $73,400 were stolen from the synagogue. Mr. O’Leary said the temple expected its insurer to cover the cost of the stolen items, minus a $2,500 deductible.

Mr. O’Leary recommended that Mr. Spencer be adjudicated a common and notorious thief and sentenced to 6 to 8 years’ imprisonment with probation and restitution.

A common and notorious thief adjudication increases the maximum allowable sentence for larceny from 5 to 20 years.

Mr. Spencer’s lawyer, Lynne S. Martin, recommended a prison term of 2 to 3 years, with probation.

Ms. Martin said her client stole the artifacts to support his gambling addiction. The only other crime on his record, she said, was a 2009 larceny conviction that landed Mr. Spencer on probation for 5 years.

As conditions of probation in that case, Mr. Spencer was ordered to pay $45,000 in restitution and attend Gamblers Anonymous meetings.

Ms. Martin said Mr. Spencer attended the meetings and was doing well, but then had a “relapse.”

His probation officer, Melissa Charlton, told Judge Lemire Mr. Spencer paid a total of $2,500 in restitution since being placed on probation in 2009.

When asked by Judge Lemire, Ms. Charlton said the advisory sentencing guidelines for the new charges to which Mr. Spencer pleaded guilty called for a sentence of 36 to 54 months.

Judge Lemire sentenced Mr. Spencer to 4 to 5 years’ imprisonment on the new charges and to a concurrent term of 4 to 5 years on a violation of his probation from the 2009 larceny case. Mr. Spencer was given credit for 146 days he spent in custody awaiting trial.

Pennsylvania: Escaping Culpability?

The Gambling Industry loudly proclaims that they are working for 'Responsible Gambling,' whatever that is. They conduct these phony training sessions to instruct their employees to spot 'Gambling Addicts,' yet no one has ever testified that they have been approached about their Gambling Addiction. There is no witness to the efficacy of these phony claims.

The list of categories on the right side is far too long, yet the time has come to add two additional categories that should be tracked -

1. The phony claims of the Gambling Industry should be tracked. This Gambling Addict used her employer's credit card to book rooms. Where's the culpability? We'll just call that 'phony claims.'

2. In neither article was the Slot Barn(s) named. The media is protecting a venue that ignored a patron's inability to fund her addiction. Let's acknowledge that the Slot Barn is tracking your play, performance and expenditures. They know all about you. They also know you can't afford to spend the embezzled funds. We'll just call that 'Concealed.'

In neither of the blogs below was the venue named --

Casino Watch Focus

Fraud Talk

Former York Symphony Orchestra employee pleads guilty to stealing $200,000
By JAMIE McCUNE
For the Daily Record/Sunday News

A former York Symphony Orchestra employee admitted in court Wednesday to stealing more than $200,000 from the symphony to cover her gambling addiction.
Phyllis A. Shoff, 56, of New Cumberland, will serve 9 to 23 months in York County Prison, followed by 10 years' probation for theft and access-device fraud.

"I wrote them to myself to cover my gambling debts, and so my family wouldn't know," a tearful Shoff said Wednesday as she confessed to using the symphony's checkbook to write checks to herself that covered food, bills and hotel rooms for casino trips.

During her eight years as office manager, Shoff wrote checks to herself and to the name "Phyllis A. LoPresti" totaling almost $150,000. She also used two credit cards and a local bank card - meant to purchase symphony supplies - for bills and gambling expenses. Those charges totaled almost $70,000.

Shoff must pay $177,967.85 in restitution to Federal Insurance Co., the company that insures the YSO. Additionally, she will pay $42,994.78 to the YSO for the amount not covered by insurance.

"I'm satisfied with it," said Henry Nixon, former executive director of the symphony, who first alerted police to the theft. "When something like this happens, it's very personal."

Nixon, who attended Wednesday's hearing, said Shoff's sentence met his main criteria of seeing her serve jail time and preventing her from being able to steal from an employer again.

"That was critical to me. She's never going to be able to hold a job where she can handle money. That gives me a lot of satisfaction," Nixon said.

Shoff had no comment after the trial.

"It is what it is. It's what you heard in the courtroom," said James Rader, Shoff's public defender.

Nixon said the thefts did not affect the symphony's programs.

Symphony treasurer Jolleen Biesecker provided a victim impact statement during Shoff's hearing.

"There will likely be donors that never return. Ultimately, we had people trust us with their money, and it was stolen from us," the statement reads. "Phyllis's actions have caused some of our volunteers to become disillusioned as well as wary about continuing to work to raise money for an organization whose employee was able to do what was done."

Judge Gregory Snyder rejected an initial plea deal that required Shoff to serve only 3 to 23 months in prison, followed by probation. The original plea took into consideration Shoff's medical condition and gambling addiction, according to the prosecution.


The full sentence
In addition to her prison term and probation, Phyllis A. Shoff will also be required to pay restitution, attend a crimes impact class and submit to any required treatment after a mental health evaluation.

If Shoff can afford to pay the monthly cost, she will be allowed to serve six of the nine months of her prison sentence on house arrest.

Shoff is to report to York County Prison on April 26.


Former YSO office manager embezzled $221K and gambled it away
ELIZABETH EVANS The York Dispatch


The guilty plea of York Symphony Orchestra's former office manager -- who embezzled more than $200,000 from the orchestra -- almost didn't happen.

Phyllis (LoPresti) Shoff, 56, of the Travel Inn, 300 Commerce Drive in New Cumberland, appeared before Common Pleas Judge Gregory M. Snyder Wednesday morning.

Senior deputy prosecutor Justin Kobeski informed the judge the plea agreement called for Shoff to serve three months in county prison, followed by 10 years of probation.

Shoff embezzled the money over a seven-year period to support her gambling addiction, Kobeski told the judge, and suffers from unspecified medical conditions.

"Somebody is going to have to convince me ... that this deal is appropriate," Snyder said. "There are a lot of people who steal money for a lot of reasons. ... I understand the defendant may have medical conditions but, quite frankly, that didn't stop her from committing serious crimes."

New deal: Kobeski and public defender James Rader spoke privately, then went back to the judge with a new plea agreement that added six months of house arrest.

Snyder accepted Shoff's guilty plea to two counts of each of theft and access-device fraud, all third-degree felonies.

He sentenced her to the agreed-upon punishment: nine to 23 months in York County Prison, followed by 10 years of probation, plus a mental-health evaluation and possible counseling. She must also attend crime-impact classes.

As part of the agreement, Shoff will spend the first three months in prison and the next six months on electronically monitored house arrest. She must pay in advance for all house-arrest costs, the judge ordered.

Restitution: She also must pay a total of $220,962.63 in restitution -- $177,967.85 to Federal Insurance Co., which reimbursed the orchestra for that amount of stolen money, and $42,994.78 to the orchestra itself, for losses not covered by its insurance.

From July 2004 to April 2007, Shoff wrote herself checks from the orchestra account to gamble and pay personal bills, and used orchestra credit cards to pay bills and for hotel rooms during her casino visits.

"I was the office manager and I paid the bills. ... I wrote myself the checks to myself to cover my gambling ... so my family wouldn't know," she said.

Asked by Snyder where the money went, Shoff said, "I gambled it."

The judge granted a defense request to allow Shoff to remain free for three weeks, so her attorney could consult with prison officials about her medical conditions. She must report to prison on April 26.

Shoff declined comment as she left the courtroom.

"It is a sad case for everybody involved, except perhaps for the casinos that she frequented," said Rader, her defense attorney. "It shows that gambling can evolve into a serious addiction just like any other addiction that results in harmful and negative consequences."

Satisfied: York Symphony Orchestra treasurer Jolleen Biesecker said the symphony is satisfied with the plea agreement. She said the orchestra's primary goal was to ensure Shoff could never embezzle again.

Biesecker said the orchestra's administrative arm has been revamped to ensure no one can steal from the organization again. The revamping has also cut costs, she said.

In a written victim-impact statement, Biesecker wrote there is no way to measure the impact of Shoff's crimes:

"The Symphony's 79-year reputation of being good stewards of the public's generosity was violated. There will likely be donors that NEVER return. Ultimately, we had people trust us with their money, and it was stolen from us."

YSO 'doing well': Henry Nixon, who was the orchestra's executive director until retiring Sept. 1, said YSO has paid its credit-card companies the nearly $43,000 not covered by insurance, and did so without programming being affected.

He said the orchestra is "doing well" financially.

During the hearing, Snyder noted his own connection to the orchestra.

"My father was a member of York Symphony Orchestra for probably 40 years, as a musician," and also served on its board, the judge said.

The Business Model

The success of the Gambling Industry relies on creating New Gamblers and creating New Gambling Addicts using whatever means possible including Vibrating Seats.

Harrah's [now Caesars] determined that 90% of their profits originated from 10% of their patrons. That's ADDICTION. They know their patrons and know when they Gamble beyond their financial capacity.

The Gambling Industry resists any effort to protect the consumer: monthly statements, daily loss limits, posting odds on Slot Machines, because they would no longer 'profit.'

And the states, as Addicted to the false promises of revenue as the Gambling Addict becomes a partner promoting Addiction, denying culpability.


Roselle priest avoids prison in gambling scandal
Judges sentences man to jail, probation, labor
By Josh Stockinger

A DuPage County judge said he aimed to teach a Roman Catholic priest “a little humility” Tuesday in sentencing him to a mix of jail, probation and menial labor for gambling away hundreds of thousands of dollars belonging to a Roselle parish.

Judge John Kinsella also ordered Father John Regan, 47, to pay $295,000 in restitution to St. Walter Catholic Church, saying his crimes constituted an “indescribable level of betrayal” against those who trusted him most.


“You basically went out in the dark of night with other people’s money and fed an addiction,” Kinsella told Regan. “No sentence I can impose on you can undo the harm you did to that parish. If I thought the world would be a better place locking you up for 30 to 40 months in a cell in southern Illinois, I would.”

Regan faced up to 15 years in prison after pleading guilty in June to felony charges that stemmed from his two years as pastor at St. Walter.

He told the court in tearful testimony Tuesday that a gambling addiction led him to repeatedly raid a “special needs fund” at the parish for hundreds of thousands of dollars, which he spent at riverboat casinos in Elgin and Joliet. He apologized and vowed to make amends.

“Every day was a good day to go to the casino, and that’s the insidious nature of the disease I have,” Regan said, breaking down in tears. “I can’t imagine anybody wanting to do what I’ve done.”

Kinsella ordered Regan to immediately begin serving a 60-day jail sentence. After that, Regan will serve 150 nights in jail in a program that requires him to hold a job — “as menial as possible,” the judge said — by day. He also was ordered to complete 500 hours of community service, four years of probation, and 40 days on work detail for the county sheriff’s office, in addition to restitution.

Kinsella warned that any infractions could result in prison. “I don’t want you betting on whether the sun comes up tomorrow,” he told Regan, who said he hasn’t placed a bet in three years.

Regan was ordained in 1989 and went to work for St. Walter in July 2006. Within two months, Assistant State’s Attorney Helen Kapas said, he created a secret “special needs fund” for which he was solely responsible and used to feed his gambling habit.

“That a person could do this to their own church is unthinkable, unimaginable and unbelievable,” she said. “There will be different judgment days for John Regan, but today is a day for justice in DuPage County.”

State’s attorney investigator Ray Bradford testified that records showed Regan withdrew more than $117,000 on nearly 400 occasions from the account at casino ATMs. About $295,000 altogether in parishioner contributions moved into the account under Regan’s watch. And the priest also wrote about $115,500 in checks to himself from that account, Bradford said.

Regan admitted gambling away at least $264,000, though prosecutors put the number closer to $410,000. The defense attributed the difference to winnings that went back into the mix and were unaccounted for.

At a five-hour sentencing hearing Tuesday, several St. Walter parishioners took the stand and gave alternate assessments of Regan. Some said they believed he deserved another chance, in part because of his work on programs for children, seniors and missionaries. But others said they felt betrayed and saddened that he took advantage of their generosity.

“They’re divided,” said Bryan Mraz of Roselle, who has attended St. Walter most of his life, outside of court. “I can live with (the sentence). I liked what Judge Kinsella told him. I hope (Regan) takes what he said to heart.”

Prosecutors, who dubbed Regan the “riverboat priest,” had sought a 10-year prison term, saying probation would “deprecate the seriousness” of his offense. But defense attorneys Jim Ryan and Jack Donahue contended that Regan never enriched himself or bought cars, condominiums and other big-ticket items common in embezzlement cases.

“We’re not dealing with a sociopath. We’re dealing with a good man, a charitable man, who was possessed by a demon of gambling addiction,” Donahue said. He later called the judge’s ruling “fair and wise.”

“Obviously John Regan is not jumping for joy being in the county jail,” Donahue said. “But he understands what he did was egregious.”

Regan was removed from St. Walter in summer 2006 after an internal audit uncovered the thefts. He is barred by the Diocese of Joliet from saying Mass or offering communion publicly, and any future employment would be restricted, said the Rev. William Dewan, vicar of priests.

“We’re not sure what the future holds,” he said.

In a statement, the Diocese said it remains “committed to proper stewardship of any money donated to its parishes and agencies.”

“We have an effective financial reporting system for parishes in place, and audits are conducted on a regular basis,” said diocesan spokesman Doug Delaney. “We constantly strive to make sure that any financial irregularities are caught and reported to local authorities.”

PA Casinos and Politicians Own Gambling Addict Problems

PA Casinos and Politicians Own Gambling Addict Problems
Parents aren't the only ones who should be held accountable for leaving kids in cars in casino parking lots

There’s been a lot of recent hand-wringing and finger-pointing by lawmakers and the gambling industry over what to do about the string of embarrassing incidents where adults have left kids in cars parked outside of the Parx Casino while they gambled inside.

Former governor Ed Rendell, Pennsylvania’s godfather of gambling, says the state’s Gaming Control Board should impose strict fines on the casinos. Parx says it’s the gamblers’ fault. “This is the action of irresponsible adults,” said a spokeswoman for the Bensalem casino. Parx says it has taken steps beyond what the gaming board requires, including more security patrols and warning signs in its parking lot.

Such a lame response from political leaders and the casino industry calls to mind the barnyard euphemism “shit rolls downhill.” Fines and warning signs in parking lots will not stop gambling addicts from leaving kids in cars while they blow the rent money in casinos.

Rendell and the gambling industry instead should be looking in the mirror. They are the ones who are responsible for creating the conditions that have resulted in 10 individuals getting arrested in the last 17 months for leaving kids in cars at Parx. As governor, Rendell pushed to legalize gambling in Pennsylvania. On his watch, the state legalized slots in 2004, and later added full-blown casinos.

State and local lawmakers have been so busy counting the tax windfall from gambling that they have ignored the fact that the revenue comes by extracting wealth from the very citizens they are sworn to protect—leading to increased social ills like crime, divorce and bankruptcies, and breeding gambling addicts. (Full disclosure: I am a fellow at a think tank where I edit a blog focused on the negative impact of gambling.)

Last week, a 29-year-old Huntingdon Valley man was charged with child abandonment after leaving his six-year-old daughter in his car outside Parx on a steamy day. A 39-year-old Abington woman was charged after she left two nephews, ages one and two, and a nine-year-old niece in her car outside Park on July 16th.

The state gaming board may take up the issue when it meets August 18th. Contrary to published reports, this is not an isolated problem at Parx.

Last November, a couple left three kids—a 10-month-old girl, a three-year-old boy and a 10-year-old boy—in a minivan while they gambled in the Rivers Casino in Pittsburgh. There have been similar incidents at casinos around the country, including several where children have died. As more casinos open nationwide, the problem will likely become more epidemic than aberration.

Who knows how many other kids have been left in cars undetected or left at home alone? Clearly, some gamblers are blinded by their addiction. No person in his right mind would leave his child in a car so he could aimlessly pump quarters into a slot machine.

Granted, individuals are ultimately responsible for their actions. No one makes anyone go to a casino. But Pennsylvania and other states have made it easy to gamble by opening casinos close to home as opposed to having to fly to Las Vegas or drive to Atlantic City.

Such availability and accessibility is why the 1999 National Gambling Impact Study Commission found that people who live within a 50-mile radius of a casino are more than twice as likely to develop gambling problems compared with those who live farther away. The study undercuts Rendell’s argument that Pennsylvania’s casino customers would have gambled anyway, but now the state benefits from the tax revenue. (Using that logic, the state should legalize prostitution and collect the taxes.)

Granted, Atlantic City has been hurt by the opening of Pennsylvania casinos. But the difference is that instead of traveling to Atlantic City a handful of times a year, many Pennsylvania gamblers go to Parx and other local casinos dozens, if not hundreds, of times a year. Hence the sharp rise in calls to Pennsylvania’s gambling help line and the string of gamblers going to such extremes to get a bet down that they have left kids in cars outside of casinos.

Studies suggest that newer high-tech slot machines can be addictive for some gamblers. If so, should the state be enabling an activity that is addictive and destroys lives?

It is probably just a matter of time before a child gets injured or dies outside a Pennsylvania casino, while the guardian is inside gambling. To be sure, any adult who abandons a child should be prosecuted, but the casinos and the lawmakers who legalized gambling remain the co-conspirators. No steep fine or parking-lot warning sign is going to get them off the hook.

Paul Davies spent 25 years in the newspaper business, including stops at the Daily News, the Inquirer and the Wall Street Journal.

Casino sued after stolen cash gambled

Casino sued after stolen cash gambled
KATE CAMPBELL, The West Australian

Burswood Casino is being sued for $600,000 stolen from a Perth engineering company by an accountant who used the money to help fund his gambling addiction.

In a Supreme Court writ lodged this week, Exceleng Corporation claims Burswood was "unjustly enriched" at its expense when accountant Anthony Bianco deposited stolen funds in a casino account from which he could withdraw gambling vouchers.

Bianco, who pleaded guilty to nearly 300 counts of stealing as a servant between 1998 and 2005, was sentenced to 3½ years jail in 2007 and served at least 21 months for siphoning $925,000 from his Naval Base employer.

Lawyers for Exceleng, trading as Alltype Engineering Services, argue that Burswood facilitated Bianco's breach of trust.

"(Burswood) recklessly failed to make any reasonable inquiry as to the funds so transferred into (the casino's) account and their source, and should reasonably have been aware, given the quantum of such transfers, that inquiry as to the funds and their source was required," the writ states.

Alltype managing director Colin Heitman said Burswood had a case to answer, claiming it ignored an obligation to report big transactions for independent tracking.

"I think Burswood has an obligation to protect businesses and individuals against fraud and they don't do that," he said.

"I don't think they uphold their duty of care when it comes to protecting people against electronic fraud.

"It was an extraordinary amount of money.

"Fortunately we've survived and moved on."

Bianco, of Cannington, said yesterday: "That was like six years ago.

"I'm all finished, I'm finished with that."

In a 2007 Court of Appeal decision that increased Bianco's original 2½-year term by a year, Bianco was described as an immature man in denial about his gambling addiction.

"His immaturity led him to identify achievement as related to being admired as a high roller and being well known in the casino context," the judgment said.

Burswood Casino declined to comment on the legal action.

Pennsylvania: Legislators can't do enough to protect Slot Barns

Do we have laws to prosecute minors for purchasing liquor?

Don't we penalize the liquor stores?

Do we have laws that prosecute minors for buying cigarettes?

Don't we penalize the stores that sell them?

In Pennsylvania legislators can't do enough to protect Slot Barns!

Bill targets underage gamblers
BY ROBERT SWIFT (HARRISBURG BUREAU CHIEF)


HARRISBURG - Underage gamblers crashing casinos would face stiff fines under pending legislation being drafted by an Allegheny County lawmaker.

Rep. Paul Costa, D-34, Turtle Creek, said he decided to sponsor the bill making underage gambling a criminal offense following recent action by the state Gaming Control Board to levy fines against three casinos, including Mount Airy Casino Resort, for allowing underage individuals on the gaming floor.

Mr. Costa said he's heard reports of an increasing number of individuals under the legal state age minimum of 21 attempting to gamble at casinos. "The gaming board's prohibition against underage gambling is classified as a nongaming summary offense, which is not a disincentive and nothing more than a slap on the wrist," said Mr. Costa, a member of the House Gaming Oversight Committee.

Under his proposal, a first conviction would be classified as a summary offense with a fine up to $2,000. A conviction for a second or subsequent offense would be a third-degree misdemeanor with a fine up to $5,000. The measure would allow for higher fines if an offender used fake or forged identification to enter a casino.

Other penalties being considered would include community service, forfeiture or payback of gambling winnings and putting an offender's name on the excluded gamblers' list.

"My legislation makes it very clear to young people that taking a chance at a casino if you're under 21 years old is a bad idea and has lasting consequences," said Mr. Costa.

After the gaming board approved underage fines for Mount Airy, the Rivers Casino in Pittsburgh and Hollywood Casino in Dauphin County, Chairman Greg Fajt said board members would support any legislation to levy tougher penalties against underage gamblers.

The issue of penalties for underage gambling warrants a close look by lawmakers, said Rep. Jerry Knowles, R-124, Tamaqua, a member of the gaming oversight panel. He is reserving comment on Mr. Costa's bill until it's formally introduced

Pennsylvania: Rivers wants to escape culpability

In an audacious move, The Rivers Casino is attempting to escape culpability from violating its own rules allowing underage gambling and its own failures to monitor its premises.

We punish stores that sell cigarettes to minors.

We punish liquor stores and bars that sell to minors.

The Gambling Industry portrays itself exempt from accepting responsibility.

Pennsylvania Casinos Want New Laws To Punish Underage Gamblers

PHILADELPHIA (CBS) - The lawyer for one of the latest casinos to be fined for underage gaming says Pennsylvania needs to rethink its approach to the problem.

The $80,000 fine levied against The Rivers Casino in Pittsburgh Wednesday is among the more than $1.1 million total in fines for underage gaming in Pennsylvania.

Michael Sklar, an attorney representing The Rivers, says the problem will continue unless the minors themselves are punished.

“The kids are going. It’s like a bar: the kids are gonna try.”

But Gaming Control Board Chairman Greg Fajt says in some cases, the casinos aren’t following their own rules.

“Kids are going to a table and playing table games. They’re cashing out money from a cashier when they’re under the age of 21. Those are simply unacceptable circumstances,” Fajt said.

Fajt believes gaming board members would support sanctions against minors, but notes that some policies, such as New Jersey’s practice of taking drivers licenses from underage gamblers, would have to be approved by the legislature.

Reported by Tony Romeo, KYW Newsradio 1060

Casino Culpability?

If a casino amasses more debt than it can reasonably expect to repay, frequently based on inflated revenue projections or poor business decisions, the casino can file bankruptcy, as many have and discharge their debts.

In the case of Foxwoods, and other Tribal Casinos, they simply stop paying because, after all, they're Sovereign.

Casino Tribes Default

Tribe Renegs on $50 Million Bond

And what of Steve Norton, whose company has filed bankruptcy in other states, but is salivating to enter the Massachusetts market?

It's with some sense of irony that Trump is insisting this Gambling Addict's debt should be nondishargeable after Trump has discharged debt how many times in bankruptcy court?

And what of the culpability of a casino accepting paper from someone who lacks the ability to easily repay the loan?

Morris admits gambling problem
Businessman claims addiction led to casino debt

Altoona businessman Gregory Morris admits he had a gambling problem when he amassed hundreds of thousands of dollars in debt to several Atlantic City casinos, court documents state.

Morris made the admission in a recent filing in his Chapter 11 bankruptcy case before the U.S. Bankruptcy Court of Western Pennsylvania. The Altoona businessman is attempting to keep his many enterprises afloat by working out a reorganization plan.

Morris said he suffers from a gambling addiction, "which constitutes a medical condition in which [he] suffers from an irresistible impulse to gamble," court documents state. Because of the condition, he was "medically and psychologically incapable of controlling his conduct and thus unable to form the requisite intention to defraud or deceive a casino."

The casinos want U.S. Bankruptcy Judge Jeffrey A. Deller to declare the gambling debts "nondischargeable." If approved by the judge, Morris would be required to repay the entire amount of money owed to the casinos rather than possibly paying only a portion as other debtors might be required to accept in the bankruptcy settlement.

Morris is not saying he doesn't owe the money to the casinos, his attorney, John P. Lacher of Pittsburgh, said Tuesday.

"[But] they shouldn't get any special relief," Lacher said.

Morris charges that the casinos, knowing of his addiction, "permitted, encouraged, aided, abetted, facilitated and enabled [Morris] to indulge in his addiction, all without regard to the potential adverse consequences not only to [his] business enterprises but to his family as well."

Morris owes more than $800,000 to casinos such as Trump Taj Mahal, Trump Marina, Trump Plaza, and Marina District Development as the Borgata Hotel, Casino and Spa, the casinos claim.

The casinos exploit people they consider "high rollers," or people known to wager and lose large sums of money, by providing them "luxurious suites, sumptuous foods, abundant alcoholic beverages and attractive women," according to Morris' bankruptcy filing.

Morris maintained those gambling debts, which he at first called loans, have nothing to do with the real reason for his bankruptcy filings.

His business partners, including the estate of the late Joseph Ventura and Dr. Carroll Osgood and Osgood's wife, Diane, contended Morris wasn't communicating with them. They asked Blair County President Judge Jolene G. Kopriva to appoint a receiver.

When she named a receiver, Morris essentially transferred court proceedings to the bankruptcy court.

Morris has been emphatic that his business problems with his partners have nothing to do with his personal debts stemming from his gambling.

Morris continues to work out a plan to get new financing into his businesses and to obtain new partners, discussions which are ongoing, Lacher said.

Casino Capitalism: Culpability and Complicity

If JPMorgan is culpable in profiting from the Madoff scheme, why aren't casinos culpable for allowing patrons to gambling using funds the casino should have reasonably known exceeded the patron's ability to pay?

Why are casinos allowed to retain stolen funds and profits?

Madoff trustee sues JPMorgan, others for $6.4B

The bank used most by Bernard Madoff was "willfully blind" and "thoroughly complicit" in the disgraced financier's epic fraud, lawyers working for a court-appointed trustee alleged Thursday.

The suit alleges that as Madoff's primary bank for 20 years, JPMorgan had to know that the unwavering double-digit returns Madoff reported to wealthy investors were too good to be true. The trustee cited bank documents showing questionable transactions by Madoff as evidence it was in on the scheme.

The bank "was willfully blind to the fraud, even after learning about numerous red flags surrounding Madoff," said David J. Sheehan, an attorney working for Picard. "While many financial institutions enabled Madoff's fraud, JPMC was at the very center of that fraud, and thoroughly complicit in it. ... Madoff would not have been able to commit this massive Ponzi scheme without this bank."