Opinion: Casinos’ liquidity linked to loans backed by real estate assets

JIN: “(I am) a member of a private loan company serving clients with diverse needs. Sometimes I lend my money; sometimes I lend money from my associates.

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Paul King Jin, alias “Brother Bao”, did not prevent the publication of a report prepared for the money laundering investigation, alleging that he had provided millions to players who had pledged property to guarantee loans.

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The 653 page document titled “Paul Jin Debt Enforcement Against BC Real Estate”, details more than 20 major players accused of owing him massive debts as well as potential competitors – suspected loan sharks and private lenders.

Jin was granted two-year survey participant status last November 5 for the sake of fairness because he was kicked out of casinos as of 2012 and accused of being a major supplier of the tide of money that flooded gaming facilities from around 2010 to 2015.

He was also the target of the 2015 RCMP E-Pirate investigation which focused on a Richmond money services company allegedly providing the change. Jin has not been charged.

But the 51-year-old man was shot in the face, and his partner Jian Jun Zhu, 44, was shot dead on September 18 last year. Zhu and his wife, Caixuan Qin, ran Silver International, the company at the center of the E-Pirate investigation.

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Investigating Commissioner Austin Cullen ruled that only a redacted version of the report would be released and given to Jin, who did not comply with a summons to produce a multitude of documents.

The lawsuits involve homes and property deemed to be pledged for sky-high borrowed amounts – $ 2.3 million, $ 1 million, $ 8 million, $ 2.68 million, $ 750,000, $ 892,000, $ 1.2 million …

Some players are named:

“Jia Gui Gao is documented in BCLC records as a high risk banned client. … There are 166 separate incidents documented in Gao’s iTrak file from September 2013 to June 2016, including transfer of chips and cash, suspicious activity, and large buy-ins with unsourced money. He was banned for five years from February 22, 2018 due to unspecified “public security” concerns. … (He was among the) Top 10 Customers (Suspicious Cash Transactions) (for 2014), with Suspicious Cash Transactions totaling $ 5,530,720. “

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Other names and details are redacted:

“(Void) is identified in BCLC documents as a high risk client. … A 2014 report notes that he bought for $ 3,205,200 at Lower Mainland casinos between February 2006 and July 2009, then resumed gambling in January 2013. Between January 2013 and June 2014, his buy-ins increased. totaled some $ 11.9 million.

The report contains the casino staff’s observations of customers’ vehicles, arrival times, and the names and physical descriptions of their friends and family.

In court documents, Jin describes himself as “a member of a private loan company serving customers with diverse needs.” Sometimes I lend my money. Sometimes I lend my associates’ money.

The federal and provincial governments as well as the BC Lottery Corp. objected to the publication of the full report and said they would like to have the option to withdraw some of their contributions for fear that sources would be identified.

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They also argued that Jin’s refusal to comply with his participant obligations “reflects a lack of commitment to the commission’s processes and militates against providing Mr. Jin with sensitive documents in the possession of other participants.” .

Jin has been ordered to produce records of all loans he has made on his behalf or any entity controlled by him, including promissory notes, communications regarding such loans, and records relating to any collateral for him. such loans, such as mortgage loan agreements, records relating to the performance of any loan made by or on behalf of it or any entity controlled by it, including, but not limited to, communications with borrowers via SMS, WeChat and email.

“Sir. Jin did not meet his documentary obligations.… He also did not produce any documents in response to the summons,” Cullen said.

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“Although Mr. Jin’s failure to comply with his document production obligations was not taken into account in my decision on this request, I am referring to it here because it has been the subject of observations. “

The first part of the report released this week provides a list of legal proceedings initiated by Jin or his wife, Xiao Qi Wei, as well as a list of mortgages filed by them and the companies under their apparent control. The second part provides a summary of the procedure, including the substance of any response and the status. The third part summarizes the history of the game of individuals who allegedly borrowed from Jin. And finally, he provides a summary of recent mortgage lending activity by entities associated with Jin, including two issued by companies that name his son, Jesse Xin Jia, as sole director.

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“With reference to material gathered through open source research or commission-based production by participants, we were able to connect most borrowers to the often-extensive gambling activities in BC casinos, to both legitimate and underground, and in some cases to casinos located abroad, ”explained the report preview.

There are allegations that Jin charged usurious interest, up to 120% per year, and threatened some customers who fell behind in their payments.

The report, which takes no position on the veracity of the allegations, attaches public documents but not documents provided by participants in the gaming industry such as the BCLC and the Gaming Policy and Enforcement Branch.

Jin’s attorney, Greg DelBigio, did not comment.

Investigation picks up online Oct.15 for final submissions, and Cullen’s report is due Dec.15.

imulgrew@postmedia.com

twitter.com/ianmulgrew

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