IRS details condo bought with gambling funds - KUAM.com-KUAM News: On Air. Online. On Demand.

IRS details condo bought with gambling funds

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by Mindy Aguon

Guam - More details about alleged illegal gambling coming out of the District Court.  The feds are now looking to have a condominium in Irvine, California forfeited as they contend it was purchased with proceeds of illegal gambling on Guam. Since April of last year, the Internal Revenue Service's Criminal Investigation Division has been investigating the overseas Chinese Association Center, RTJ Incorporated and other entities believed to be laundering money and engaging in illegal gambling. 

According to an affidavit filed by IRS Special Agent Todd Peterson, the financial records have been analyzed and authorities believe money from illegal gambling was being siphoned to various bank accounts and companies owned by members of the organization, including Betsy Ho, who purchased the condo in California with Roland Ho, who is believed to be her son.  Peterson stated that he believes that RTJ "was incorporated as a way to illegally siphon money from the OCAC by making it appear that the OCAC was paying RTJ royalties for the speed bingo machines when in fact OCAC was paying the full amount due for these machines to the software owner." 

Despite having a list of shareholders, the IRS doesn't believe the shareholders of RTJ ever invested a penny, even though they received payments. A review of the financial records show that Betsy Ho received $150,000 from RTJ and from various other bank accounts she shares with husband, Wai Kam Ho.  

In December you may recall federal authorities executed several search warrants at the MGM Spa, RTJ Incorporated, Paradise Bingo, the Crazy Horse and other locations they believed were engaging in illegal gambling. The feds are also scrutinizing the organization's bingo operation as the IRS has reviewed the OCAC bank accounts, which shows very few cash deposits but regular $15,000 withdrawals.

The feds were able to freeze a number of bank accounts as they continue their investigation.

Meanwhile, the District Court today denied the U.S. Attorney's Office to keep this case sealed, or kept from public record.

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