\nChris Sieroty, Las Vegas Review-Journal<\/p>\n
\tThe race and sports book subsidiary of Cantor Fitzgerald L.P. accused of inadequate supervision of its employees that led to one of its top executives accepting illegal bets will pay a record $5.5 million fine under a settlement unanimously approved Thursday by the Nevada Gaming Commission.<\/p>\n
\t\u201cToday is a bad day,\u201d Commissioner Dr. Tony Alamo said. \u201cThis is an enormously large sum of money. This is a revenue get. That\u2019s not our goal, our goal is to punish\u201d those who violate state gaming regulations.<\/p>\n
\tAlamo credited CG Technology\u2019s CEO Lee Amaitis for attending the hearing but cautioned him that this incident was national news and \u201cgave Nevada a black eye.\u201d Alamo said he wouldn\u2019t want to see CG Technology come before the commission for a similar incident in the future.<\/p>\n
\t\u201cI am not afraid of revocation\u201d of a company\u2019s license,\u201d Alamo said.<\/p>\n
\tChairman Peter Bernhard said he was initially reluctant to support the stipulation because of the damage done to the industry by the company. But Bernhard did support it because it is largest fine ever against a gaming company. He said the $5.5 million fine sends a message that \u201cpeople will be held accountable.\u201d<\/p>\n
\tThe three-member gaming control board could have also recommended revoking or suspending CG Technology\u2019s license.<\/p>\n
\tAmaitis attended the hearing but did not address the commission. He also declined to comment on the commission\u2019s decision following the 20-minute hearing.<\/p>\n
\tThe Nevada Gaming Control Board\u2019s 18-count compliant outlining the charges against CG Technology, former Cantor Gaming, was made public on Jan. 8. The settlement was released on Jan. 13.<\/p>\n
\tIn the complaint, regulators said CG Technology failed to prevent Michael Colbert from operating an illegal sports betting ring that made an estimated $34 million in bets. Colbert, formerly director of risk management and vice president of the former Cantor Gaming in Las Vegas, worked with three men who worked as messengers to place wagers for Gadoon Kyrollos, a high-level sports bettor.<\/p>\n
\tPaul Sexton, Robert Drexler, and Thomas Ludford acted as messenger bettors, according to the complaint. Sexton pleaded guilty to fourth-degree money-laundering and forfeited $600,000.<\/p>\n
\tColbert pleaded guilty to one felony count of conspiracy for his role in the betting ring in New York federal court last year. He\u2019s awaiting sentencing.<\/p>\n
\tThe settlement says CG Technology admitted guilt in 14 counts of the complaint and concurred that the board could prove one count directly relating to Colbert\u2019s oversight of the illegal wagering operation. The company did not admit or deny allegations in three other counts.<\/p>\n
\tBoth Amaitis and Cantor Fitzgerald Chairman Howard Lutnick signed off on the settlement.<\/p>\n
\tPrior to the fine approved Thursday, the largest ever approved by Nevada gaming regulators was $5 million in 2003 against MGM Mirage, now known a MGM Resorts International. The company was fined for failing to file 15,000 currency transaction reports to the state.<\/p>\n
\tOwners of the Stardust paid a $3 million fine in 1984 to settle a complaint over allegations that the now-imploded Strip casino\u2019s former owner failed to prevent mob-related skimming of gaming revenues.<\/p>\n
\tIn 1988, Ralph Engelstad, late owner of the Imperial Palace, was accused of damaging the state\u2019s reputation for holding two Adolf Hitler birthday parties at the casino in separate years. He paid a $1.5 million fine.<\/p>\n
\tThe Palms paid a $1 million fine last year to settle a complaint resulting from an investigation that discovered rampant drug sales and prostitution at clubs on the property.<\/p>\n
\tFounded in 1945, Cantor Fitzgerald is one of the largest private financial services firms on Wall Street. Lutnick, the firm\u2019s chief executive, has led the company\u2019s expansion over the past decade into investment banking, commercial real estate and gaming.<\/p>\n
\tCG Technology operates race and sports book at the M, Hard Rock, Tropicana, Cosmopolitan of Las Vegas, Venetian, Palms and the Silverton, as well as provides information as Las Vegas Sports Consultants and offers mobile wagering. The bookmaker also has operations in China and the Bahamas.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
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