Macau junket operator accused of laundering HK$1.8 billion

Rich Goldman Holdings

26/06/2015 05:03

HONG KONG, June 26 (Reuters) - A storied Macau junket 
operator, who has been the focus of a lengthy police 
investigation, has been accused of laundering HK$1.8 billion 
($232 million) through bank accounts in Hong Kong, according to 
court documents released this week.  
    Cheung Chi-tai, a former major shareholder of one of Macau's 
biggest junket operators the Neptune Group  0070.HK , is facing 
three separate charges of money laundering.  
    In November last year, the Hong Kong police launched a 
money-laundering investigation related to Cheung and had frozen 
his assets.  
    Macau's junket operators and high roller VIP industry has 
come under increased scrutiny from authorities due to Chinese 
President Xi Jinping's campaign to crack down on corruption and 
illicit transactions.  
    Gambling revenue in Macau has plummeted for the past year. 
The junket business, which relies on middle men to bring in 
gamblers from mainland China, extending them credit and 
collecting debts from them, has taken an extra beating.  
    Cheung, who lives in one of Hong Kong's most affluent 
neighbourhoods, has been charged with dealing with property 
known or believed to represent proceeds of an indictable 
offence, according to a charge sheet seen by Reuters.  
    Bank of China  601988.SS  and Chong Hing Bank  1111.HK  are 
shown as the banks involved in the transactions. Both banks 
could not be immediately reached for comment. 
    A Neptune spokesman said Cheung was not a shareholder and 
had no link to the company. The 54-year old could not be 
immediately reached for comment.  
    Cheung was also named in another money laundering trial of 
former Birmingham City owner Carson Yeung last year. Cheung was 
not present at that trial.  
    The trial of the flamboyant Hong Kong businessman Yeung cast 
a rare spotlight on some of the murky channels and methods used 
by underground banks and money launderers in moving illicit 
capital between China, Hong Kong and the gambling hub of Macau. 
    Cheung was identified in a 1992 U.S. Senate committee 
investigation as a top lieutenant of the Wo Hop To triad group.  
    A Reuters' 2010 special report also found links between 
Cheung and organised criminal gangs, or triads, and a casino run 
by gambling goliath Las Vegas Sands  LVS.N  in Macau. ((http://reut.rs/1fcLwB5)) 
    While Cheung hasn't been convicted of any triad-related 
crimes, his organised crime affiliation was corroborated by U.S. 
authorities and former and current police officials. 
    Cheung's case has been adjourned to Sept. 24. He was 
released on bail for HK$200,000.  
($1 = 7.7515 Hong Kong dollars) 
 
 (Reporting by Farah Master, James Pomfret and Shan Kao; Editing 
by Ryan Woo) 
 ((farah.master@thomsonreuters.com; +852 28431631 , +852 9631 
8262; Reuters Messaging: 
farah.master.thomsonreuters@thomsonreuters.net)) 
 
Keywords: MACAU JUNKET/COURT