Commissioner Austin Cullen looks at documents before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

Commissioner Austin Cullen looks at documents before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

RCMP lacked dedicated team to investigate illegal activities at casino, inquiry hears

Hearings for the inquiry are set to continue into next week and the inquiry is expected to wrap up next year

The inquiry into money laundering in B.C. has heard the RCMP didn’t have the resources to investigate illegal activities at the province’s largest casino, while the B.C. Lottery Corp. didn’t have the authority to crack down on suspicious transactions.

Ward Clapham, the former officer-in-charge of the Richmond RCMP detachment, said he tried twice to establish a new unit linked to the River Rock Casino but his requests were denied by the city.

He told the inquiry on Wednesdayhe needed the city’s approval to create the “casino crime team,” but general duty front-line officers were a higher priority for Richmond than gaming.

He said he pushed for a specialized team until he left the RCMP in 2008, but the support never materialized despite the expansion of illegal gaming activities in B.C. throughout the early 2000s.

Clapham’s request for funding to support such a team “caused significant friction,” he added.

He said no other RCMP detachment was facing the kind of challenges they were facing with gaming activities and day-to-day policing in Richmond, which does not have its own municipal force.

Clapham also agreed that the increase in gaming brought “social costs,” including serious crimes in the city.

“That whole panacea of crime includes front-line policing responsibilities like, you know, missing people, potential homicides (and) kidnappings that can be directly or indirectly related to gaming issues, to actual illegal gaming activities or crimes like money laundering” or loan sharking, he said.

The provincial government launched the inquiry after commissioning reports that outlined how money laundering was affecting real estate and housing affordability, luxury car sales and gambling in B.C.

Clapham said he hoped that some revenue from gaming would be allocated to the proposed specialized unit, but he wasn’t able to convince Richmond’s leaders that that was the way to go.

The inquiry also heard an integrated illegal gaming enforcement team was established in 2003, including Mounties and B.C.’s gaming policy and enforcement branch, but it was disbanded in 2009.

Gord Friesen, a former Mountie and former manager of investigations for the B.C. Lottery Corp., said he didn’t have the authority to stop a transaction without proof the money was the proceeds of crime.

“If $200,000 in $20 bills wrapped in elastic bands was dropped off to somebody in a parking lot outside the casino and tendered at the cash cage, would that be a sufficiently suspicious transaction to warrant intervention?” asked Patrick McGowan, senior counsel for the inquiry commission.

It would be suspicious and reportable, replied Friesen, but such a transaction would not have been stopped without evidence that a crime was being committed.

Friesen estimated that when he first started at the River Rock, investigators with the lottery corporation made around five to 10 reports of such suspicious transactions each week.

He said the reports were made to Fintrac, Canada’s financial transactions reporting centre, as well as B.C.’s gaming policy and enforcement branch and various departments within the RCMP.

Suspicious transactions increased over time, said Friesen, and the reports grew to around 25 a week.

Asked how many times someone was arrested for money laundering or loan sharking in the casino, he said, “it wasn’t a lot.”

The B.C. Lottery Corp. did not have the authority to dictate how much or in what form casinos could accept money as buy-ins for gaming, Friesen added.

He said the corporation was in “constant negotiations” with the gaming policy and enforcement branch to find alternatives to cash transactions.

Friesen said there was room for improvement in the lottery corporation’s anti-money laundering efforts, but “as part of the tools that we had to deter this type of thing, I think we did a very good job.”

Confronted with the fact that large, suspicious transactions were increasing significantly year over year, Friesen said, “we needed assistance and we weren’t getting assistance.”

The inquiry heard earlier this week that transactions involving as much as $800,000 were common at River Rock starting around 2010 as players hauled in bags and suitcases full of cash, often in $20 bills.

Hearings for the inquiry are set to continue into next week and the inquiry is expected to wrap up next year.

Brenna Owen, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

money laundering

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
41 positive COVID-19 cases associated with the LNG Canada site outbreak

Thirty-four of the 41 cases remain active, according to Northern Health

Cases have gone up in Northern Health in the past week, as they have all over B.C. (K-J Millar/Black Press Media)
Northern Health reports new highest number of COVID-19 cases in one day

Nineteen cases were reported to Public Health last Tuesday (Nov. 17)

FILE – British Columbia provincial health officer Dr. Bonnie Henry wears a face mask as she views the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
Masks now mandatory in all public indoor and retail spaces in B.C.

Many retailers and businesses had voiced their frustration with a lack of mask mandate before

(Photo courtesy of LNG Canada)
An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers. This is where several employees are isolating after a COVID-19 outbreak was declared Thursday.
COVID-19 outbreak at LNG Canada Project site

14 employees have tested positive for COVID-19 at this time

A man has been arrested after a Nov. 11 break and enter at the Sandspit Airport, Queen Charlotte RCMP said in a media release on. Nov 17. (Black Press Media files)
Man arrested after Nov. 11 break and enter at local airport

Queen Charlotte RCMP investigate recent spate of break and enters

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. daily COVID-19 cases hits record 941 on Tuesday

Further restrictions on indoor exercise take effect

(Pixabay.com)
Man, 28, warned by Kootenay police to stop asking people to marry him

A woman initially reported the incident to police before they discovered others had been popped the question

Winston Blackmore (left) and James Oler (right) were sentenced on separate charges of polygamy this week in Cranbrook Supreme Court.
No more charges expected in Bountiful investigation, special prosecutor says

Special prosecutor says mandate has ended following review of evidence from Bountiful investigations

(Ashley Wadhwani/Black Press Media)
Refuse to follow B.C.’s mask mandate? Face a $230 fine

Masks are now required to be worn by all British Columbians, 12 years and older

BC Teachers' Federation President Teri Mooring is asking parents of school-aged children to encourage the wearing of masks when possible in schools. (THE CANADIAN PRESS/Chad Hipolito)
LETTER: Teachers union encourages culture of mask wearing in B.C. schools

BCTF President Teri Mooring asks parents to talk with children about wearing masks in school

Prime Minister Justin Trudeau speak to the media about the COVID-19 virus outside Rideau Cottage in Ottawa, Friday, Nov. 20, 2020. THE CANADIAN PRESS/Adrian Wyld
Canada’s inability to manufacture vaccines in-house will delay distribution: Trudeau

First doses of COVID-19 vaccine expected in first few months of 2021, prime minister says

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Pamela Wright, a UNBC professor in the department of ecosystem science and management, is presented with the Mitacs Award for Exceptional Leadership - Professor, at a virtual ceremony today (Nov. 24) in recognition of her collaborative work with community partners and students to conserve Canada’s northern lands. (Photo submitted by Mitacs)
UNBC professor recieves prestigeous conservation award

Pamela Wright recognized for leadership in ‘breakthrough’ work on northern issues

Pamela Wright, a UNBC professor in the department of ecosystem science and management, is presented with the Mitacs Award for Exceptional Leadership - Professor, at a virtual ceremony today (Nov. 24) in recognition of her collaborative work with community partners and students to conserve Canada’s northern lands. (Photo submitted by Mitacs)
UNBC professor receives prestigious conservation award

Pamela Wright recognized for leadership in ‘breakthrough’ work on northern issues

Most Read