328-54A Street

Delta BC V4M 3J3

Mayor and Council

City of Delta

April 28, 2018.

Mayaor-cou ncil@delta.ca

MAY 02 2018 BYLAW NBR"1'1\o \

Agenda File # 13280-20-LU008527

TYPE: PUBLIC HEARING DEPT: CP&D A,T.#: 134324 COMMENTS: MAY 2. 2018 PH GATEWAY CASINO r:nNTINl JATION

Re: Rezoning proposal for a casino and entertainment complex at 6005 Highway 17A

Madam and Council Members:

I cannot think of even one advantage to our community of approving this proposal. However, the

disadvantages are multiple: organized crime, drug peddling, money laundering, family and mental

health costs from gambling addiction, traffic congestion and so on and so on.

The suggestion that the developer be given a $700,000 tax break at the expense of the Delta taxpayers

adds even more of a bad smell to the whole disgusting package.

I used to really like my life in South Delta but in recent years many decisions made by the Delta

Municipality have soured my attitude.

I live in hope that you will listen to us who say no to this unsavoury proposal.

Jean S. Thompson.

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Samantha Stilwell

From: Sent: To: Su bject: Attachments:

Saturday, April 28, 20184:39 PM Mayor & Council Gateway Casinos proposal Doc1.docx

Mayor _Council

From: Sent: To: Subject:

John Hutton Tuesday, May 01,20188:02 PM

Agenda File # 13280-20-LU008527

mrushkowski@delta.ca; Mayor & Council; editor@delta-optimist.com Casino - Rezoning Bylaw 7761

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(:' :'1 Mayor and Councilors, I am opposed this and any activities being made to have a Casino in Delta. Delta should have a referendum on ', :, whether or not the people of Delta wish to HAVE a Casino first, BEFORE proceeding wi th a public hearing. .. ':

( " .:. We don't need the money from the proceeds of gambling to run Delta. Neither do we need the Corl1lption and I'.)

Money Laundering that comes with it. :,~

There are other social problems that come from gambling as well. A gambling addiction is as bad or worse than ;:.:; other addictions llke alcoholism or drugs. Not just the addict suffers, whole families suffer. Think of children 1:<:1 ... . ] going without meals and other hardships to SUppOlt a gambling addiction. Is tills what Delta wants to be knovm for? __ . ..... _. Jolm N Hutton. TYPE: PUBLIC HEARING 48 Georgia Wynd, DEPT: c:pR.n Tsawwassen A.T.#: 134324

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COMMENTS: MAY 2,2018 PH GATEWAY CASINO CONTINUATION

From: Sent: To: Subject:

Martha Cheney Tuesday, May 01, 20184:38 PM Mayor & Council Little benefit to having casino in Delta

HOPE YOU'RE PAYING ATTENTION ..... M.CHENEY ' 4595 54A sl

Agenda File # 13280-20-LU00852i

TYPE: PUBLIC HEARING DEPT: CP&D AT.#: I:)L\ ~ (jL\ COMMENTS: MAY 2, 2018 PH GATEWAY CASINO CONTINUATION

http://www.delta-optimist.com/opi nionll etters/] i ttle-benefi t -to-havi ng-casi 110- in-del ta-1.23277467

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5/2/2018 Little benent \0 having casino in Della

Little benefit to having casino in Delta

Delta Optimist

APRIL 26,201808:36 AM

Editor:

The opinion poll on the Optimist website asks if the proposed casino should get a tax break. As of

Friday morning, 85 per cent of respondents were opposed to tile idea. Thank goodness some people

are paying attention.

I was astounded to learn via your papel- that Gateway could receive over $700,000 ill property tax and

permit fee savings for its casino project. Surely all Delta residents should be outraged at this

offer, especially for a proponent that is in business to make money from other people's losses from

gambling. .

Being Gateway is a private company, we do not even have information on who owns it. It would be

dandy if Delta gave its residents a tax savings for a change.

I urge readers to take some time and write to Delta council by May 1 and say no to the casino. We will·

gain very little from having it here from what I can see.

While a new or remodelled hotel would be nice, especiaUy if tennis courts are maintained, surely this

does not have to come with a casino.

jean Wightman

© 2018 Delta Optimist

http://www.delta-oplimisl.com/opinionllel1e rslli Itle-bene lil-Io· havi ng ·casino-i n-della-1 . 23 277 4 67 1/1

From: Sent: To:

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Dawn Wittenberg Wednesday, April 18, 20181:19 PM Mayor & Council

Agenda File # 13280-20-LU008527

Subject: How B.C . casinos are used to launder millions in drug cash

TnLe r e sLing arLicle on casino money laund er ing in a casino in DelLa wlll be any differenl? h L~/www. t irnesco iO)Jj sJ. .. -.C..Q!Tl.DlP"W$/h - C'/ lJDw.:. b.-:-.-J' J 81.1 n cI E' r _ }iJj ll~ jTt..:::~ d.n) g ':.s: ii~h: .. : . .L23JJ5 2' 9 75

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TYPE: PUBLIC HEARING DEPT: CP&D , A T # . I' ') ,l \ -) . -:' i -'1

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COMIVIENTS: MAY 2,2018 PH GATEWAY CASINO CONTINUA TION

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5/2/2018 How B.C. casinos are used 10 launder millions in drug cash

How BeC. casinos are used to launder millions in drug cash Sam Cooper / Vancouver Sun

OCTOBER 2, 201'7 06:49 AM

Paul King Jin, from a 2011 CTV News Vancouver video. Photograph By VANCOUVER SUN

On Oct. 15,2015, a Mountie burst through the front door.of an office in Richmond, carrying a

battering ram and with a rifle slung on his back. The door swung shut behind him, locking him inside.

He was in the lobby of Silver International Investment, a high-end money transfer business,

surrounded by bulletproof glass.

Behind a second glass door, a woman rushed to make a call while hiding several cell phones. Under

her desk was a safe stuffed with bundles of cash. The Mountie, a large man, counted seconds

anxiously, wondering if the woman would unlock the interior door.

It was one of 10 police raids in Richmond that day - part of a major investigation that has uncovered

massive money laundering and underground banking networks with links to Mainland Ch ina, Macau

and B.C. casinos, allege the RCMP's federal organized crime unit and China's national police service.

Postmedia has spent six months looking into the case, involving freedom of information requests for

thousands of documents and dozens of interviews with government and law enforcement sources

that were not authorized to be identified. Now, the inside story can be told of the investigations that

led B.C's attorney general last week to order an independent review of casinos overseen by the B.C.

Lottery Corp.

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5/2/2018 . How B.C. casinos are used to launder millions in drug cash

In late August, at a Vancouver conference attended by U.S. and Canadian law enforcement officials,

RCMP Insp. Bruce Ward outlined the details of E-Pirate, the investigation into Silver International,

Asian organized crime groups, and an alleged $500-million-plus international money laundering

service run from Richmond.

Central to the money laundering probe, allege B.C. government documents, is suspect Paul KingJin, a 50-year-old Richmond spa owner.

BCLC and S.c. gaming policy enforcement branch documents say that information revealed by the

RCMP's investigation intoJin and Silver ledthem to suspect the funds are tied to "transnational drug

trafficking ... (that) could have a potentially devastating impact on the casino industry."

Jin allegedly helped ultra-wealthy Mainland China "whale" gamblers, recruited in Macau, to gamble in

B.C., the investigationdocLiments allege.

The Macau whales were able to gamble with suspected drug cash supplied by Jin's network, especially

at River Rock Casino, the investigation documents allege. With those funds borrowed fromJin and

"private lenders," they were not only able to gamble, but to develop real estate in B.C.

Without naming names, a paragraph in the confidential MI\IP LLP audit of S.c. Lottery Corp. that the

attorney general released last week describes underground banking channels that allowed "Chinese

nationals" to evade China's tight capital controls and transfer wealth into S.c.

Investigators learned the Chinese whale gamblers were "provided with a contact in Vancouver, either

locally or prior to arriving in Vancouver," the MNP report says. Next, the gamblers would "contact the

person via phone for cash delivery," which they use to buy chips at a casino. The gamblers would

repay these funds "through cash holdings in China." Wh.~n the gamblers cash out, they are left with

money available for use in Canada.

At the anti-money-Iaundering conference in late August, the RCMP's Ward used security videos seized

from Silver International's office, in a multi-storey business complex in the 5800-block of Cooney

Road, to explain Silver's operations. Ward walked conference attendees through a security video that

showed the Mountie attempting to enter Silver's office.

"This lady is the primary target, she returns to her desk, she is hiding her three cellphones and calls

someone," Ward said. "Meanwhile there is a very anxious police officer counting the seconds, wa iting

to be let in."

The woman allowed the Mountie and additional officers to enter Silver's inner sanctum, and what

they found could lead to one of the most significant money laundering cases ever in Canada, police

say. Ward said Silver was so diligent in recording transactions, and its security system videos are so

revealing that Mounties believe they are able to clear a difficulthurdle for Canadian law enfol-cement:

proving that laundered money is directly connected to a "predicate" crime, in this case, drug­

trafficking .

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5/2/2018 How B.C. casinos are used 10 launder millions in drug cash

In the E-Pirate raids, RCMP seized 132 computers and cell phones, yielding 30 terabytes in data, If all

that digital evidence were printed on paper, it would fill almost three million thick telephone books.

And ledgers suggest that in only one year, Sliver laundered $220 million in cash in 8,C., and sent over

$300 million offshore, according to Ward,

"This is huge," one police officer, who was not authorized to be identified, said of the case's expected

impact. 'This could change money laundering in 8,C,"

In the raid on Silver International's office on Cooney Road, civil forfeiture documents allege, Mounties

seized over $2 million in mostly $20 bills, plus ledgers and daily transaction records, The claim also

alleges that two people identified entering the Silver office were later stopped by Mounties on

Highway 5 in Merritt, driving a car with $1 million in suspected drug cash stuffed into two suitcases in

the trunk,

On Wednesday, Zachary Ng, a lawyer for Jin, told Postmedia he would "convey" requests for comment

on E-Pirate allegations to Jin. But Ng said he could not immediately comment. Matthew Nathanson,

lawyer for Silver International Investments, said: "I don't have any comment on this matter."

To understand Silver's network, law enforcement had to understand the nature of organized crime in

Richmond and Mainland China, which operates "parallel" to the Chinese business community,

according to Ward.

"Any given gangster, if you want to call them that, businessman, will have many schemes and thus

many networks, and this networking is what facilitated the business," Ward said, "Because they were

able to start a profession of money laundering ... to all their friends in drug dealing, who needed the

service of converting cash into bankable instruments,"

Ward said Silver International and Jin's alleged network had many facets, but the main business

stemmed from funding the "whale" gamblers, who gambled both in B,C. legal casinos, and Illegal

gaming houses set up in rural Richmond,

"Part of what we found, is they had two ongoing illegal casinos where the same businessmen who are

part of the conspiracy were able to provide non-legal gambling for these offshore gamblers," Ward

told conference attendees,

Describing the unimaginable wealth of these Chinese gamblers, Ward said that each man typically

gambled between $100,000 and $1 million on a weekend visit to the Lower Mainland.

The RCIVIP's investigation started with surveillance of gambling and cash drops at River Rock Casino,

which led to Silver International's cash house,

'The primary target that led us there, was a person that is involved in generating 'whales' '" these

high-end gamblers," Ward said. "His expertise is going over and working in Macau, identifying rich

Chinese businessmen that would go to Macau, and he was attracting them to Canada, to gamble. He

would use Silver International as a bank account."

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5/2/2018 How B.C. casinos are used to launder millions in drug cash

Describing a typical delivery, Ward said: "They would put $1 00,000 into a hockey bag, show up at the

casino, and give (the VIP gambler) $100,000 .. , the loaning out would go to Chinese offshore gamblers

coming into Canada."

Ward said Canadian residents were also loaned cash from Silver in "loan sharking" operations. And

Lower Mainland wire transfer businesses were also funded with suspected drug money,

"The extra cash they had would end up in money exchanges, to wire money around the world,"

According to S,c, Lottery Corp, documents, anti-money-Iaundering investigators identified Paul King

jin in 2012, and these investigators collaborated with S,c' law enforcement to Identify jin's alleged

network, and about 36 gamblers believed to have received criminal cash to buy chips in S,c. casinos.

A suspicious-transaction report filed in 2014 by S,c. Lottery Corp, to Fintrac, Canada's anti-money

laundering agency, says jin "has been identified as one of the main cash facilitators in the Lower

Mainland for casino VIP patrons," From 2012 to 2014 jin logged 50 large cash transactions and at least

$1 ,24 million in cash buy-ins, the report says. jin has been banned from all S,c' casinos for five years,

according to the Fintrac report, because of an "extensive history of suspicious incidents,"

SCLC investigators found thatjin and "numerous other people" believed to be working for him were

discovered deliver ing "large amounts of bundled $20 bills" to "known VIP players with ... considerable

wealth with mostly Asian-based businesses,"

When jin was barred from casino properties, he continued delivering cash to VIPs, but in parking lots

outside or nearby casinos, the Fintrac report alleges.

'Jin was also recently brought to the attention of SCLC by law enforcement agencies that are worki ng

with SCLC to identify patrons that are involved in known criminal organizations in B.c'," the 2014

Fintrac report says. "BCLC is actively working with the RCfVlP gang unit."

jin does not have a criminal record, but has been found guilty of a number of city bylaw infractions. In

2011, Richmond cancelled the licence for jin's spa, The Water Club, after RCrvlP visits. Directors of the

club were from Mainland China, Mayor Malcolm Brodie's council was told.

Brodie's council had access to a report from a Richmond RCMP officer, wi:1G noted that in police visits

to jin's elu b: "Members later confirmed that high level drug traffickers .were inside getting 'foot

massages' .. . it is suspected thatjin was meeting with members who are associated to drugs and

violence."

In his E-Plrate presentation in late August, Ward said RCMP surveillance identified 40 different

organizations linked to Asian organized groups dealing cocaine, heroin and methamphetamine.

Gangsters or their couriers were delivering "suitcases laden with cash" to Silver International's cash

house, allegedly at an average rate of $1.5 million a day.

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5/2/2018 How B.C. casinos are used to launder millions in drug cash

At Silver, dealers could drop off $1 00,000 in cash in a suitcase, Ward said, and within minutes a credit

for $95,000 would appear in a Chinese bank, after a five per cent fee taken for the laundering and

transfer service.

Using an alleged transaction from Silver's security tapes as an example, Ward explained.

'rrhis is a typical event, of a drug dealer bringing in cash. She receives a call, and she goes out to

receive a trusted customer ... the vast majority is $20s," Ward sclid. 'rrhe relationship is such, and

trusted, that the phone call is made, 'I'm coming in with $1.4 million,' and the staff will wire transfer

the credit for that in China, before the cash even comes in the door."

Ward alleged Silver got so sophisticated that it evolved into an operation that could wire funds to

Mexico and Peru, allowing drug dealers to buy narcotics without carrying cash outside Canada, and

cover up the international money transfers with fake trade invoices from China.

''rhey facilitated drug trafficking and moved money from it around the world," Ward said, pointing to

slides of transaction records captured in the E-Pirate raids. 'rrhis is a typical request, a direction from

Silver International to move money from their own account to a drug dealer's account. We saw

evidence of over 600 (bank) accounts in China that were controlled or fed by Silver International.

Chinese police have followed up, and they have labelled this a massive underground banking

system."

RCMP seized over $9 million, including millions in cash during E-Pirate, and are trying to seize about

$4 million in assets, Ward said.

Mountie lab technicians considered themselves lucky the cash seizures in 2015 took place before

S.C's deadly fentanyl crisis hit, Ward said, since drug cash handled in Vancouver now is often

dangerous, covered in traces of fentanyl dust.

Sources in S.c. govern ment and federal law enforcement say it is believed Jin's network and the

Chinese VIP gamblers allegedly funded by Silver International own many lUxury properties in the

Lower Mainland,

Sut it's difficult for Canadian governments to seize assets believed to be directly connected to crime,

"It is very difficult nowadays to say, '01(, that house that is being used asa casino is an illegal

residence, so let's seize it," Ward said. "But who owns it? We are finding now, not only one layer of

nominees, but two, three and four, And some of those nominees live in China. And they are either

related to you, or they don't even know they are owners. So for ~any of the properties, we just had to

walk away."

Civil action launched

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5/2/2018 How B.C. casinos are used to launder millions in drug cash

A civil forfefture action against Silver International Investment and two men, Andy Kai Wai Cheung

and Yong Li Chell, was launched in August 2015. The action states the men were witnessed by RCMP

surveillance among a number of the people entering Silver's office with suitcases.

RCMP later stopped a rented Chevrolet Malibu with Alberta plates on Highway 5 in Merritt. In the car

were Cheung, who has a criminal record in the United States for conspiring to import ecstasy, and

Chen. In the trunk, the claim alleges, was a black suitcase holding $349,950 split into 35 bundles of ',, -

$10,000. And in a hard shell suitcase was $649,560 in vacuum-sealed bags. The cash indicated

'positive' for drug residue, the claim states, and was "bundled in elastic bands and shrink-wrapped in

a manner consistent with drug trafficking."

Silver International has stated it has no connection to the cash, and Cheung and Chen deny any

wrongdoing. The action continues. .

© Copyright Times Colonist

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From: Sent: To:

Sandra MacFarlane Wednesday, May 02, 20188:52 AM Mayor & Council

Agenda File # 13280-20-LU008527

Cc: Subject:

Steven Lan; Neil Dubord; f(arJ Preuss; Marcy Sang ret FW: AG File Number 546568

Please include this in the On Table correspondence at tonight's Public Hearing,

Thank you,

Sandra

From: Jeannie Kanakos Sent: Wednesday, May 02, 2018 8:47 AM To: Neil Dubord; steven Lan; Sandra MacFarlane; I(arl Preuss Cc: elr Sylvia Bishop Subject: Fwd: AG File Number 546568

Hello,

TYPE: PUBLIC HEARING DEPT: CP&D A.T,#: 134324

COMMENTS: MAY 2, 2018 PH GATEWAY CASINO r,ONTINlJATION

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Councillor Bishop kindly shared thi s link reienedto at the Public Hearing last night regarding Attorney General - presenting at the Federal - Standing Committee on Finance, Jeannie Kanakos

Begin forwarded message:

From: Sylvia Bishop Subject: FW: AG File Number 546568 Date: May 2,2018 at 7:14:28 AM PDT To: Robert Campbell Jeannie Kanakm

Bruce McDonald <Mayor@delta,ca>

Here is the link to the video mentioned at the pubic hearing last night.

From: Aimee McKinney

Date: Wednesday, May 2, 2018 at 4:50 AM

To: Sylvia Bishop Subject: Re: AG File Number 546568

Please share the link before the meeting resumes tonight.

Heather King Lois Jackson

Aher viewing (16 minutes) asl< yourself how it could be possible that Dr. Peter German privately told our Chief of Police that there is no reason to be concerned about increased crime resulting from this venture, as he stated to you all last night. That is not possible, given the tenor of this address to the Standing Committee on Money Laundering and Terrorism, .. unless money laundering is not being considered a crime in some circles?

On May 1, 2018, at 2:56 PM, Sylvia Bishop wrote:

Thanks.

From: Aimee McKinney

Date: Tuesday, May 1,2018 at 9:14 AM

To: Sylvia Bishop

Subject: Re: AG File Number 546568

Should be, if you click the word "here".

However, here it is again: http://parlvu.parl.gc.ca/XRender/en/PowerBrowser/PowerBrowserV2/20180327/-1/29018 ?use ragent= Moz i II a/5 .0%20{M acint os h ;%201 ntel%20M a c%200S%20X% 2010 .12;%20rv:5 9 .0)%2 OG e c

ko/20100101%20Firefox/59.0

Please share appropriately. I am off to work now.

Aimee

On May 1, 2018, at 9:09 AM, Sylvia Bishop wrote:

Video link not included.

Sylvia

On May 1,2018, at 9:04 AM, Aimee McKinney wrote:

Please view the linked video before the Public Hearing today at 6:00 pm.

Sent from my iPhone

On Apr 27,2018, at 4: 17 PM, JAG WEBFEEDBACK JAG:EX wrote:

Ms. Aimee McKinney

Dear Ms. McKinney:

Thank you for your email on February 13,2018, regarding the proposal for a new gambling facility in Delta and money laundering in British Columbia's gambling facilities.

As you may be aware, the BC Lottery Corporation (BCLC) is responsible for the conduct and

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management of all commercial gambling in BC on behalf of govemment, including determining the location of gambling facilities in the province. Under the Gaming Control Act, BCLC must receive approval from the host local government. Prior to approving a potential gambling facility, the host local government must seek and consider community input and must consult potentially affected local governments. As the final decis"ion to pennit a new gambling facility in a community rests with the local govemment, your concerns would best be directed to local govemment officials.

I share your concerns about keeping crime out of BC's gambling facilities. As you may be aware, last September 1 hired lawyer Dr. Peter Gem1an, a fonner deputy commissioner of the RCMP and Correctional Service Canada, to conduct an independent review of BC's anti-money-Iaundering policies and practices in Lower Mainland casinos. Dr. Gennan was also asked to examine what connection, ifany, the issue has with other areas of BC's economy.

On April 3, 2018, I received Dr. Gennan's independent review, which includes 48 substantive recommendations. My office is now reviewing Dr. Gennan's work and government will provide a response in due course . However, work has al,ready begun on interim recommendations provided to" government as the review progr~ssed over the past several months.

On December S, 2017, government received two interim recommendations from Dr. German. BCLC implemented the first of those recommendations on January 10, 2018, through new procedures that require service providers to gather detailed infom1ation on the source of a player's funds for all transactions of $1 0,000 or more.

BCLC's response includes expanding the types of transactions a source of funds declaration applies to and requiring service providers to record more detailed infonnation about a customer's source of funds. If a customer does not provide the required infom13tion, gives suspicious information, or does 110t sign the source of funds declaration form, the service provider must refuse the transaction. BCLC will then undeliake an investigation. This policy

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has contributed to a steep decline in suspicious cash transactions in casinos.

Work is also well unden1,lay on Dr. German's second recommendation for govel11ment regulators to have an enhanced presence at large, high-v'olume facilities on the Lower Mainland. GPEB is developing a staffing schedule to provide increased coverage in the immediate-term and has initiated the hiring process in order to be able to meet the recommendation.

In March oftlus year, on Dr. German's advice, I also recently spoke to a federal finance committee in Ottawa, to address money laundering in this province. My presentation can be viewed online here.

Thank you for taking the time to share your concerns. Govemment is detelmined to end money laundering in Be's gambling facilities. Dr. Gelman's repOJi will provide us with a strong foundation to make effective decisions to eradicate this activity.

Yours truly,

David Eby, QC Attorney General

pc: Dr. Peter German

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