Wednesday, April 04, 2012

California Group Uses ID-Theft/Casino Credit Scam to Bilk State's Casinos Out of $1 Million--Ringleader Convicted--Scam Eerily Similar to Scam Portrayed on Richard Marcus Scam of the Month Page!

Source: LVTSG Business News

Following a two-week jury trial, a southern California man has been convicted of defrauding several local casinos of about $1 million by using recruits to obtain casino credit markers that were not paid back, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

De Rong Shang, aka Jason Shang, 50, of San Gabriel, California, was convicted on Tuesday, March 27, 2012 of one count of conspiracy to commit mail fraud and 17 counts of mail fraud. Shang faces up to 360 years in prison and $4.5 million in fines and is scheduled to be sentenced by U.S. District Judge Roger L. Hunt on July 16, 2012.

From about December 2006 to April 2007, Shang conducted a conspiracy and scheme to defraud casinos in Las Vegas. Shang and co-defendant Yuli Eaton, 47, of Redlands, California, who pleaded guilty to conspiracy before trial, recruited persons to open bank accounts that were funded by Shang. Shang then helped the recruits apply for lines of credit at several Las Vegas casinos. Once the lines of credit were approved, the recruits transferred the money from their accounts to Shang’s account. The recruits then withdrew chips from their lines of credit (“markers”) and played baccarat at the casinos. The recruits were instructed to use a process known as rolling the chips to make it look like they were actually losing money, when they were actually just hiding chips and transferring them to other co-conspirators. The recruits then applied for higher lines of credit and played baccarat, again using the rolling process to make it look like they had lost. In actuality, they gave the chips to Shang, who cashed them in. The recruits then left Nevada or the country and were paid a small percentage of the total amount of credit under their name, generally $300 per $10,000 line of credit. The casinos attempted to collect the unpaid markers, but by that time, the accounts had been drained or closed. Using this scheme, Shang and Eaton defrauded three local casinos of $1,011,400.

The investigation was conducted by the FBI, and the case was prosecuted by Assistant U.S. Attorneys Andrew W. Duncan and Brandon C. Jaroch.

This law enforcement action is sponsored by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

My take: Sounds like they got the idea right off this website! If you don't believe it, look here.
and scroll down to "Casino Credit/Identity Theft Scam.