Know when to fold ’em: Normandie Casino partners admit fed charges

The four partners of the Normandie Casino pleaded guilty Friday to federal charges that the Gardena club violated anti-money laundering provisions of the Bank Secrecy Act.

As part of an agreement with federal prosecutors, the casino agreed to pay nearly $2.4 million for failing to report large cash transactions to federal authorities.

The Normandie Club — a partnership of four siblings operating the Normandie Casino — pleaded guilty to two felony offenses — failing to maintain an effective anti-money laundering program and conspiring to avoid reporting to the government the large cash transactions of some of the casino’s “high-roller” gamblers.

Under the Bank Secrecy Act, casinos like the Normandie are required to implement and maintain programs designed to prevent criminals from using the casino to launder the large sums of cash that illegal activity can generate.

For example, casinos must record and report to the government the details of transactions involving more than $10,000 by any one gambler in a 24- hour period.

“The United States has an array of anti-money laundering statutes designed to prevent criminals from using the American financial system to launder the large sums of cash generated by illegal activity such as organized crime, drug trafficking and human trafficking,” Eileen M. Decker, the U.S. attorney in Los Angeles.

“Casinos that fail to follow these rules are particularly vulnerable to criminals who seek to disguise illegal cash as gambling winnings,” she said.

U.S. District Judge S. James Otero scheduled sentencing for May 23. The casino faces up to five years’ probation and a fine of $1 million or twice the gross gain or gross loss resulting from the offense, whichever is greater.

Additionally, the parties agreed that the casino should forfeit to the government $1.3 million, which it admitted receiving in 2013 while failing to file Currency Transaction Reports.

The card club at 1025 W. Rosecrans Ave. recently celebrated its 64th anniversary.

The casino has remained a family business with original owner Russ Miller’s four sons, Lee, Larry, Greg and Steve overseeing operations, and granddaughter Michelle Miller Wahler serving as casino president.

— City News Service