A Nevada company that provides cash and credit advances to casinos has been banned from doing business in Arizona because it “cheated the banks” and misled regulators.
Global Cash Access has approximately 20 Arizona Indian casinos as customers, providing 5 percent of its total revenue. But, said the Las Vegas Sun, state officials recently told them to take a hike:
The Arizona Department of Gaming has recommended that Global Cash be banned from doing business in the state due to incidents years ago when, according to the agency, Global Cash defrauded banks by mis-coding cash advance transactions; and because of a tendency to mislead regulators and not listen to them.
The article tells how the two founders, Robert Cucinotta and Karim Maskatiya, are going to be paid tens of millions of dollars for the shares they own in an attempt to distance the company from their alleged dirty transactions. The pay is excellent in the money business, of course, even if you are accused of skimming at the expense of the banks. The two resigned from the company’s board of directors last year weeks after Arizona regulators knocked on the door.
The story gets even juicier – the pair were asked about the murder of Maskatiya’s wife in 1982, but lied about it on an Arizona regulatory form, another says. Sun story from last week:
“Police detectives questioned both Maskatiya and Cucinotta about the murder. Both read their Miranda rights. The detectives felt that Maskatiya and Cucinotta made inconsistent statements and did not cooperate with the investigation. the identity of the murderer, ”the Arizona report said. Still, the two said “no” when Arizona regulators asked them if they had ever been questioned by a law enforcement agency, according to the report.
The article portrays the company as a very wealthy bunch of crooks:
The Arizona report said that from 1999 to 2002, Global Cash deliberately miscoded transactions involving Visa by disguising cash transactions as retail purchases, meaning it would pay lower fees to banks issuing the cards. Visa involved.
Global Cash made $ 26 million with this program, according to the Arizona report. He says the company was fined $ 384,000 by Visa, but otherwise never returned the stolen money.
The Arizona report states that over the next several years it attempted to deceive gambling regulators in Michigan in 2004 and Arizona in 2005 by not disclosing all of the required information about the mis-coding problem.
The company’s slogan, “Transactions That Matter,” is perfect.