John Karlovec, a former direction of the Lottery Commission in British Columbia, Canada, has testified before a public inquiry on money laundering in the province.
It pertains to events at the River Rock in Richmond in 2011 and 2012. Of interest is his role in suspicious transactions.
The Commission had not been aware of these transactions but was informed when Karlovec was called to testify before Ross Alderson, in charge of money laundering investigations.
According to Alderson, certain clients exchanged larger bills for smaller ones to hide criminal gains. It is a common practice and banks will not do it.
Karlovcec confirmed that the casino staff should have alerted the Commission. But some employees felt that transactions less than $50,000 did not raise suspicions.
A lawyer for the Commission, Alison Latimer, noted that transactions over this amount were not reported. It was likely that they were done in small amounts over twenty-four hours.
Latimer cited an email in 2012 from Derek Dickson, a government investigator at the time specializing in games of chance.
He wrote that the River Rock was not pointing out large transactions done in $100 bills. One sequence, in fact, totaled $500,000.
To these accusations, Karlovcec answered that a lack of reporting was contrary to Lottery Commission rules, but the staff at the time responsible for surveillance were asked to do an internal audit. He didn’t think that the casino had violated the law.