Anti-money laundering scheme: Normandie Casino partnership to pay $2.4 mil
The partnership that ran the Normandie Casino were ordered to pay about $2.4 million to settle federal charges that the now- defunct Gardena club violated anti-money laundering provisions of the Bank Secrecy Act, court papers show.
As part of an agreement with federal prosecutors, the four partners agreed to pay a $1 million fine and to forfeit nearly $1.4 million for failing to report large cash transactions to federal authorities.
Sentencing took place Monday in Los Angeles before U.S. District Judge S. James Otero. The Normandie partnership pleaded guilty in January 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.
Adult entertainment mogul Larry Flynt bought the gaming license for the Rosecrans Avenue card club in July for an undisclosed price. Flynt, who already owns the nearby Hustler Casino, said he planned to spend at least $60 million over the next four years to renovate the aging facility, which he renamed Larry Flynt’s Lucky Lady Casino.
Under the Bank Secrecy Act, casinos are required to implement and maintain programs designed to prevent criminals from using the clubs 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 card club at 1025 W. Rosecrans Ave. recently celebrated its 64th anniversary.
The casino remained a family business with original owner Russ Miller’s sons, Lee, Larry, Greg and Steve overseeing operations, and granddaughter Michelle Miller Wahler serving as casino president.